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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)


Page 79


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
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