Monday, May. 17, 1954
Butter Up
Agriculture Secretary Ezra Taft Benson likes to say that if every American farmer would only drink one extra glass of milk each day, the U.S. dairy surplus would soon vanish. Last week, with surpluses still climbing, Secretary Benson tried to get the U.S. Government itself interested in his milk-drinking campaign. Into the hallways of Washington's Agriculture Building went four vending machines, each dispensing half a pint of milk for 10-c-. Then, saying that he hoped the machines would soon be installed in all Government offices, Secretary Benson marched over to tell Congress the hard facts of the U.S. dairy surplus.
Before the House Committee on Agriculture, Benson ticked off a long list of troubles. Since dairy supports were reduced from 90% to 75% of parity on April 1 aid Benson, he has studied a dozen ways of reducing the huge surplus. So far, nothing has looked practical. The Government's butter stocks are at 360 million Ibs., much of which must soon be moved out of the coolers to avoid spoilage.
Strawberry Flavor. Though the cut in dairy supports has increased U.S. butter consumption by 10%, it has not boosted consumption to the hoped-for level. The dairy industry will soon come out with a new strawberry-flavored milk, and there are dozens of relatively small-scale giveaway programs for schools, foreign and domestic relief. But neither strawberries nor gifts can make much of a dent in the growing surplus. As for any large-scale Government disposal program, said Benson, "we were restrained by the complexities."
Benson reported that a "coupon plan" to give away a pound of Government butter to U.S. housewives for each one they bought was rejected for its "administrative awkwardness." A "blended price plan" to sell butter to distributors at very low prices might have helped but at best it would merely slow the piling up of surpluses and cost the U.S. $100 million just to administer. Likeliest of all, said Benson, was a "plant payment plan" that would operate much like a version of the old Brannan plan. Under the plant payment plan, the Government would allow the market price of butter to drop to its natural level, then pay butter manufacturers the difference between market and support level prices. Even the best of the plans, said Benson, would cost the Government from 50-c- to 75-c- per Ib. to get rid of the butter.
Deal with Britain. The Commodity Credit Corp., said Benson, is negotiating with Britain to sell butter at the world market price of 47-c- a Ib. (v. 63-c- to 75-c- in the U.S.). If the deal goes through, it may lower the surplus by 80 million Ibs. But outside of Iron Curtain nations, which have a serious butter shortage, there are few other countries to which the U.S. can sell butter without hurting local suppliers and other butter-exporting nations.
Benson feels that any butter plan might prove so expensive--and so impractical--that he does not intend to try a new one without a congressional O.K. Said Benson: "We are concerned about the 360 million lbs. which we now own. We are even more concerned about the next 360 million lbs. which we might acquire."
This file is automatically generated by a robot program, so reader's discretion is required.