1 Not available 2 Percentage based on butterfat prices adjusted for seasonal variation now discountinued. 3 Average 1948-49. Uncolored maragarine. 5 Individual markets in Fluid milk and Cream Report. / Includes Government Stocks as reported in Cold Storage Report

93.3 : 303.0:

Dec.

57.1

Dec. 161.5

87.3 68.8 410.5 289.3

18.7 12.8

Dec.

26.3 276.0 135.1

14.6 8.2 :
274.9 : Dec.
215.5 190.1
81.5 : Dec.
67.6
5,650 Dec. 3,742 6,516

57.6 : 4,789 :

:

Approved by the Outlook and Situation Board, February 16, 1959

Summary

:

:

:

CONTENTS

Recent Developments and Outlook

Decline in Number of Milk Cows Slowed in Second Half of 1958

Milk Production Likely to Increase Little in 1959

Farmers' Milk Sales Reached Record in 1958 Despite

Slight Drop in Production of Milk

Slight Change Occurred in Milk Use Pattern During 1958

Consumption of Fluid Milk and Cream Declined in 1958.

Use of American Cheese Reached Record High in 1958

Milk Prices to Farmers Declined Slightly in 1958

Retail Prices for All Dairy Products Except Butter

Averaged Higher in 1958 than in 1957

Volume of Price Support Purchases May be

Relatively Lower in 1959

10

:

Separate Series Now Published for Manufacturing Milk

and Milk for Bottling

SUMMARY

Production of milk began 1959 at about the level of a year earlier, and

the total for the year probably will exceed the 1958 figure. The number of

milk cows is not likely to decline as much as last year, when high prices for

meat animals encouraged heavy culling of dairy herds. Hog prices are declining

and beef cattle prices are not likely to increase as they did in 1958. Prices

of milk probably will continue above average relative to feed. Production per

cow this year probably will increase fully as much as in other recent years.

The number of milk cows on farms January 1 was down 2.8 percent from a year

earlier.

More milk was used during 1958 than in 1957 for making cheese other

than American and ice cream. Use in other products declined, however, and

total factory use in 1958 was slightly below 1957. Total use of fluid milk

and cream was essentially unchanged, as consumption per person declined

slightly.

Consumption of American cheese per person from commercial sources in

1958 increased about 13 percent over 1957. Production of the item declined

slightly in 1958, and considerably less was sold to the CCC. The 1958 average

of 5.1 pounds was the highest level consumed since the record-equalling

5.3 pounds in 1952. Distribution from CCC stocks was equivalent to 0.8 pounds

per person, making the total per capita 5.9 pounds, a new record high.

capita use of ice cream increased slightly, but use of other items was