Federal Milk Marketing Orders and Dairy Programs in World War II

Excerpts from the report Summary: In World War II, conditions that were external to the dairy industry gave rise to special governmental regulations affecting the industry. Procedures under the Federal milk marketing agreements and order program, which had been established to stabilize fluid milk prices in a depression proved both serviceable and adaptable under the new environment. This report considers the regulations that were of greatest importance to the functioning of Federal milk marketing agreements and orders. The price-support programs that were transformed from peace to war and back to peacetime uses; price controls; subsidies which served, if not to increase, at least to stabilize production and prevent liquidation of herds; and set-aside, limitation, allocation, and rationing orders. The latter measures were employed to effect distribution which ordinarily is accomplished through the uncontrolled pricing mechanism. The report tells when each measure came into effect and when it was terminated. In each instance, the major reasons for the action are given, although a brief report obviously cannot appraise and evaluate the merits pf each action. Because price control had such an impact on production and distribution, the greatest emphasis is placed on the evolution of the intricate structure of ceiling prices for fluid milk. Ceiling prices of the leading dairy products also are summarized because the se prices enter into the formula pricing of milk for fluid consumption. The war program of the dairy industry was implemented not only by the specific regulations, price relationships, and subsidies which are summarized in this report, but also by the efficiency, cooperation, and sustained efforts of many producers and processors of milk , and by the close cooperation between most dairy organizations and the Government.