CHART IX

Blend Prices Paid Producers for Grade A 3.5 Percent Milk at Chicago, Illinois1 and Shawano, Wisconsin2

as announced by Market Administrator for Federal Order No. 41

and Prices Paid Producers for 3.5 Percent Milk by Midwest Condenseries, by Months, 1954

CHART X

Blend Prices Paid Producers for Grade A 3.5 Percent Milk at St. Louis, Missouri, and Lebanon, Missouri,

as announced by Market Administrator for Federal Order No. 3

and Prices Paid Producers for 3.5 Percent Milk by Selected Midwest Condenseries, by Months, 1954

Mr. MASON. I might explain in the case of Chicago, I have used only the class I sales, which are the bottled milk sales. In addition the Chicago market requires the cream to be made from grade A milk for fluid purposes, and for ice cream. Had I included class I and class

II sales, the sales line would bave been somewhat higher.

Mr. JOHNSON. Does the farmer get paid class I prices for the cream in ice cream?

Mr. MASON. In the St. Louis market, yes. Because the milk to a greater degree comes into the city in the form of whole milk, and also because of a different accounting system. Cream is class I in St. Louis but in Chicago it is class II and is priced slightly lower than the class I price.

Mr. JOHNSON. But it must be class I quality?

Mr. MASON. Must be grade A quality. That is right.

Mr. JOHNSON. Which is similar to class I, is it not?

Mr. MASON. No, class I is a term that relates to the use of the milk. In other words, class I milk is the milk that is bottled. It must be grade A.

Mr. JOHNSON. I see.

Mr. MASON. But all grade A milk is not class I. Chart 4 shows the relationship of production and sales for the Chicago market.

2. It is impossible to produce an exact supply of milk to meet market requirements for bottling purposes during the months of short production, or for any other given period. Weather, crop conditions, alternative opportunities available to farmers, and other factors cause shifts in the supply of milk from year to year.

Chart No. 5, which follows the description of sales and production on the Chicago market, illustrates the changes in the total supply of milk for the St. Louis market over a 5-year period, and again you could use any market in the country. You will notice that the production never comes out exactly right.

No. 3: Milk production tends to remain the same on a day-to-day basis throughout the week, while consumer requirements vary considerably. We have analyzed production and sales for a typical week in the St. Louis market.

In this case we took the week beginning February 13, because it was convenient and it was a period when there was relatively little change insofar as seasonal upswing or seasonal downswing in production was concerned.

Class I sales, however, vary widely from day to day. Labor schedules, holidays, unusual weather conditions, delivery systems, and other factors account for these variations.

Chart 6 is the next one in the series which shows the daily variations in milk deliveries to a representative dairy operating in the St. Louis market. And using Thursday as 100 you can see that the variations are very slight, ranging from 97 on Sunday to 104 on Wednesday. Weather and other factors rather than days of the week are accountable for those slight variations.

And you will notice also that the production of milk takes place on Sunday the same as any other day.

Chart VII, if you will look at it, shows the experience of one of the larger dairies whose business consists of both home delivery and sales through stores.