656 
AGRICULTURAL RELIEF 
dairy business very largely—North Carolina and even in my State of 
South Carolina. 
Mr. Sexaugr. That is the report we get from various condensers 
in our conversations with them. 
Mr. FuLumER. And I might say that that is brought about by the 
condition of the farmers in their other lines of activity. 
Mr. SExXAUER. Yes, sir. 
Mr. Hore. What is your market; is it a local market or do you go 
outside of your own territory to quite an extent? 
Mr. SExavER. We market our fluid milk locally to the extent that 
needs fluid milk; and beyond that we market cream in the local 
and other cream markets, and the remainder we sell to manu- 
facturers or among ourselves in the form of condensed milk, milk 
powder, cheese, butter, etc. 
Mr. Hore. One thing I wanted to get at was whether this Middle- 
West growth in the dairy industry would really enter into competition 
with you people if it should develop to quite an extent? 
Mr. SexAaugRr. It absolutely would. If they produced butter and 
the prices of butter became unprofitable, that milk would find its way 
into condensed milk, bring down the price of condensed milk, and then 
the condenser, not wishing to condense his milk turns to the cream 
market and endeavors to dispose of his products there. This, in turn, 
forces the producer of cream to turn to the fluid-milk market, which 
in turn creates a surplus in the fluid-milk market, thus depressing the 
whole price level downward. 
There is this interrelation between the price of butter and the price 
of other milk commodities, and it is immaterial, so far as we can see, 
where the product is produced, so long as it is produced in this coun- 
try and brings about a condition where we are facing less tariff due 
to the fact that we have become an export nation of dairy products. 
Mr. ANDRESEN. I might say to the gentleman form Kansas that 
that the production of Minnesota butter has doubled since 1920, and 
to-day we are producing a hundred million pounds more butter per 
year than any other State in the Union. 
Mr. CLARKE. Are not the cooperatives primarily responsible for 
developing the quantity of production and elevating the standard of 
quality? 
Mr. ANDRESEN. Greatly. One of our principal markets for butter 
is down here. 
Mr. KiNcHELOE. Is not the biggest dairy State Wisconsin? 
Mr. AnprESEN. Not in butter. 
Mr. SExAUER. I might say right there that the most serious 
condition with which we are faced in cream is the cream from Wis- 
consin, Iowa, Ohio, Indiana, Michigan, and similar points; that 1s 
the most serious condition which we face in cream. 
Mr. CrargEe. Allow me to say to the gentleman that I represent 
the greatest dairy district in the United States and probably in the 
world, in the production of fluid milk, and yet to-day the Land 
O’Lakes butter is being sold in my district. 
Mr. SeExauEiR. I might say also that they ship carloads and car- 
loads of cream into Congressman Clarke’s territory for the manu- 
facture of cream cheese, which also comes in competition with our 
dairy products. So we have a very distinct interest in what happens 
to agriculture in other sections of the country.