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Milk Composition

Probable Impact of Low-Fat Dairy Products on the Dairy Industry

Dairy Division, Consumer Marketing Service, USDA, Washington, D. C.

ABSTRACT

Introduction

I wish it were possible for those of us who work in dairy economics to make measurements with the precision and confidence of those who work in the field of dairy technology. Unfortunately, economists have so far not been able to harness infrared rays to assist them in their analysis.

The subject assigned to me, The Probable Impact of Low-Fat Dairy Products on the Dairy Industry, is a broad one. It is not possible to discuss this subject in isolation. Because there is a great deal of interest in the milk supply situation at the present time, I shall first give you a brief picture of the dairy situation now.

Milk Supply

Milk supplies are shorter, relative to demand, than at any time since the Korean War. During the first five months of this year, milk production was about 5% below last year's. Declines have been particularly sharp in some of our most important milk-producing states.