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Table 1.Index numbers of meat animals and milk cattle on farms, United States,

Jan. 1, 1910-52
(1935–39 Average= = 100)

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100104 108 104 100 99 98 99 101 104 107 111 114 113 108 105 100 98 98 98

Source: Livestock on Farms, Jan. 1, Bureau of Agricultural Economics, U. S. Department of Agriculture.

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TABLE 2.-Changes in milk cow numbers; heifers, number of cows and heifers eliminated during the year, and total milk production and production per cowUnited States, 1924–51

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1924. 1925 1926 1927 1928 1929 1930. 1931 1932. 1933 1934, 1935. 1936 1937 1938 1939 1940 1941 1942. 1943 1944 1945 1946 1947. 1948. 1949. 1950 1951. 1952 1

Thousands Thousands Thousands

22, 331 4, 154 3,910
22, 575 4, 177 4, 342
22, 410 4,111 4, 270
22, 251 4,110 4, 130
22, 231 4, 197 3,988
22, 440 4, 450 3,858
23, 032 4,850 4,062
23, 820 4, 961 3,885
24, 896 5, 019 3, 979
25, 936 5, 249 4, 254
26, 931 5, 381 6, 243
26, 082 4,995 5, 881
25, 196 4, 772 5, 319
24, 649 4,899 5,082
24, 466 4, 808 4, 674
24, 600
5, 122

4, 796
24, 940 5, 525

5,012 25, 453 5, 676

4,816
26, 313 5,889 5,064
27, 138 6, 067 5, 501
27, 704 6,352 6, 286
27, 770 6, 307

7, 556
26, 521
5, 758

6, 437
25, 842 5, 524 6, 751
24, 615
5, 550

6, 303
23, 862 5, 527

5,336
23, 853 5,394 5, 525
23, 722
5, 510

5, 825
23, 407

5, 726

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I Preliminary.
Source: Compiled from reports of the Bureau of Agricultural Economics, V. S. Department of Agriculture.

TABLE 3.—United States average farm prices of beef cattle, milk sold wholesale, and

butterfat, expressed as percentages of parities, 1937-51

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! Includes production payments.
Source: Burdau of Agricultural Economics, U.S. Department of Agriculture.

Table 4.—United Kingdom butter contract prices with Australia, New Zealand,

and Denmark

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Source: Office of Foreign Agricultural Relations, U. S. Department of Agriculture.

TABLE 5.-Value of exports and imports of all dairy products, 1937–51

(1,000 dollars)

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Source: Reports of the Office of Foreign Agricultural Relations, U. S. Department of Agriculture.

TABLE 6.-United States: Value of imports of specified diary products, 1951 Product:

Import value Emmenthaler cheese

$4, 618, 000 Gruyere process

1,038, 000 Italian cheese

7, 574, 000 Roquefort.

1,089, 000 Cheddar.

3, 266, 000 Blue Mold

1, 748, 000 Edam and Gouda.

1,519, 000 Sbrinz -

249, 000 Other cheese

1, 305, 000 Dried whole milk.

2, 239, 000 Dried skim..

78, 000 Dried buttermilk

147, 000 Dried cream

2,000 Malted milk.

171, 000 Butter..

34, 000 Total.--

25, 081, 000 Source: Compiled from reports of the Office of Foreign Agricultural Relations, U. S. Department of Agriculture.

Table 7.-Value of exports of specified dairy products, 1951 Product:

Erport value Milk and cream, fresh.

$640, 000 Sweetened condensed.

6, 506, 000 Evaporated..

29, 016, 000 Cheese, processed American

9, 467, 000 Cheese, processed, other.

1,053, 000 Cheese, American Cheddar.

14, 265, 000 Cheese, other.

543, 000 Butter..

2, 245, 000 Infants food, formula.

554, 000 Infants food, milk base.

7, 725, 000 Dried whole milk.

35, 085, 000 Nonfat dry milk solids.

9, 525, 000 Total.--

116, 624, 000 Source: Compiled fron reports of the office of Foreign Agricultural Relations, U. S. Department of Agri. culture.

TABLE 8.--Procurement authorizations under the ECA program, by countries of

destination, by specified commodities and commodity groups, in millions of dollars, Apr. 3, 1948, to Nov. 30, 1951

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1 Denmark, Ireland, Norway, Portugal, Sweden, Trieste, Turkey, and Yugoslavia omitted in country detail.

Source: Reports of the Division of Statistics and Reports, Mutual Security Agency, SR. 6.

TABLE 9.-Percentages of total procurement authorizations,' ECA program, accounted

for by specified commodities and commodity groups, total for food, feed, fertilizer, cotton, and tobacco by countries, Apr. 3, 1948, to Nov. 30, 1951

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1 Denmark, Iceland, Ireland, Norway, Portugal, Sweden, Trieste, Turkey, and Yugoslavia omitted in country detail.

Source: Reports of the Division of Statistics and Reports, Mutual Security Agency, SR 6.

TABLE 10.- Percentages of total procurement authorizations," ECA program, by

commodities and commodity groups, accounted for by procurement authorizations granted specified countries, Apr. 3, 1948, through Nov. 30, 1951

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1 Denmark, Iceland, Ireland, Norway, Portugal, Sweden, Trieste, Turkey, and Yugoslavia excluded in country detail. Source: Reports of the Division of Statistics and Reports, Mutual Security Agency, SR. 6.

The CHAIRMAN. I will recognize Dr. Talle.
Mr. TALLE. Thank you, Mr. Chairman.

I am sure I speak for the committee when I say that you are welcome at this hearing, Mr. Paul. We are delighted to have you. You are testifying on a very important subject in behalf of a great industry.

I would like to ask you, Mr. Paul, if the following statements. represent the truth as you see it:

(1) “Milk and dairy products are universally recognized as essential in the human diet."

Mr. Paul. Yes, that is quite true. I think about 30 percent of out total diet, in this country, is represented by dairy products in one form or another.

Mr. PATMAN. What percentage did you say?
Mr. PAUL. About 30 percent.

Mr. Talle. (2) “The dairy industry plays a vital role in the economy of Iowa and the Nation."

Mr. Paul. It certainly does--the great Middle West, as well as other great dairy producing States like New York, Pennsylvania, and some of the New England States.

Mr. TALLE. These statements are from a resolution passed in the State of North Carolina, and I substituted Iowa for North Carolina. So they believe the same thing in North Carolina as we do in Iowa.

Mr. Paul. That is quite true. The dairy industry is the dairy industry whether in North Carolina or Iowa.

Mr. TALLE. (3) “A program of price controls for dairy foods is the poorest way in which the major food industry, with its important contributions to the health and morale of the Nation, can be prepared for a national emergency in this period of rearmament.”

Mr. Paul. That is quite true, Congressman. If we in effect export our dairy cows to these foreign countries and depend upon them for our supply of fluid milk, in any time of emergency, we would be in a very precarious and serious situation in this country.

Mr. Talle. Another statement in this same resolution is: The lifting of price controls from dairy foods at this time will not result in inflationary price advances, so the arguments for controls based on runaway prices are not valid,

Mr. Pall. That is quite true, because butter has, from its peak in January, declined about 17 percent in price. It reached a high, on the New York Exchange, of about 84% cents for 92-score butter. The payment just a week ago was 69 cents a pound.

So you have that free play of supply and demand which is adequately taking care of the price situation so far as dairy products in this country are concerned.

Mr. Talle. Another statement:

“The price control mechanism is operating to diminish production and to weaken the processing and distribution facilities of the industry.”

Mr. Paul. Yes, that is quite true, Congressman. We have seen that decrease in production due to the factors that I just mentionedthat dairy cows are being sent to slaughter and production has been steadily diminishing, due to the fact that, pricewise, dairy products have been at a disadvantage with other parts of our agricultural economy.

Mr. TALLE. In a situation such as we have faced for a number of years, the dairy farmer culls his herd and keeps his best cows, does he not?

Mr. PAUL. That is true.

Mr. TALLE. So that the yield per cow might increase, as you pointed out in your statement?

Mr. Paul. That is right.

Mr. Talle. But the total production would decline because fewer cows would be milked?

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