Wisconsin Cheese Makers' Association / Proceedings of the Wisconsin Cheese Makers' Association 59th annual meeting October 25 - 26, 1950 Auditorium and Schroeder Hotel, Milwaukee, Wisconsin
Wilson, W. J.
Address, pp. 66-80 PDF (3.2 MB)
FIFTY-NDNTH ANNUAL CONVE.NTION to? Germany, Italy and France after World War I, are good ex- amples to remember. I know there are some folks in government who think inflation can be stopped by price ceilings, rationing, and similar controls. But let's read the record and we shall re- member how those methods have worked before. Of course as the defense program gets under way we shall probably see improvement in demand for our products. For the minute, as we all know, we are still bothered with surpluses. But in spite of this, because of our war philosophy and the strong urge to more production, it is not likely that gvernment will hlow dairy prices to seek their own level and risk a reduc- tion in the dairy herd of the nation. So we have a dilemma which must be causing many a headache in Washington. Under the defense production act of 1950, no ceiling price can be imposed on cheese which would reflect less than 100% of parity on milk for manufacture. Very approximately, 100% of parity on cheese would mean about 40 cents for No. 1 Cheddars Wisconsin basis. However, since the government has had to buy over 100 million pounds of cheese with a floor price of 31%, there is not much of a problem as to ceilings right now. I suppose you have all seen the news on the sale of 50 million pounds of government surplus to the English government at an unreported price. Actu- ally, we still have with us the question of whether we should or shouldn't have price supports even though attention has been diverted from the accrued surpluses by the action in Korea and the warmed-up cold war. One organization - The American Farm Bureau Federation- speaking of supports on poultry, puts it this way: "Because of the possibility that the serious current international situation could create a great need for an abundant production of quality poultry products, and wishing to avoid any regulations that would further ag- grevate industry inflationary trends, and keeping in mind the best long time interests of poultry producers and con- sumers, the committee recommends that there be no price ceilings, no rationing, and no promised price supports for poultry and poultry products." I think as citizens - and as businessmen - we have some serious thinking to do on what should be done on supports. If sup- ports go on and on year after year until producers begin to think 79
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