The Outlook for the Dairy Industry and Some Essentials of a National Dairy Program

Excerpts from the report: The dairy industry, in common with other agricultural interests, is sharing in the world-wide economic depression. Prices of dairy products have fallen below pre-war levels, and incomes of dairymen as well as of other farmers have been drastically reduced. The economic depression and the resulting reduction in buying power account for much of the price decline, but increasing competition and large supplies at home and abroad also have played a part. As economic conditions improve the demand for dairy products undoubtedly will improve. On the other hand, the relatively low prices for dairy feeds and low returns from farm enterprises other than dairying point to continued high production of dairy products for some time in many parts of the world. Far-reaching adjustments in the dairy industry are essential. Fortunately, the dairy industry in the United States is in a good position to adjust itself to the changing conditions and fortunately, also, its leaders recognize the need of a national dairy program upon which all can unite. Some of the essentials of such a program are generally recognized and must be regarded as part of a general agricultural policy. Reduction in costs of production, herd improvement, control of animal diseases, and adjustments to changing economic conditions stand out as pivotal. Much may be done to broaden the demand for dairy products and develop greater skill and economy in merchandising them. Adjustments also are needed in land-utilization policies, taxation, and other phases of public policy. Finally, a sound program for the dairy industry must be based on research to furnish the information upon which proper adjustments in the industry can be made in the light of ever-changing economic problems