Dairy Dispute

This month, like every June for the past 26 years, is National Dairy Month. Even if they do not touch it for the rest of the year, politicians from the President down to city clerks gamely quaff milk in public, and the $11 billion dairy industry unites to persuade everyone to consume more milk, butter, cheese and ice cream. While confronting the public with such unanimity, however, the dairy industry is divided by an argument about a very fundamental issue: Is the industry in trouble or not?

"We are not even holding our share of the market," says George D. Scott, national chairman of "June Is Dairy Month." "We are actually going downhill as far as per capita consumption of dairy foods is concerned." Scott's argument is backed by some impressive facts and statistics. Since 1947, the annual per capita consumption of dairy products has dropped from 768 Ibs. to 611 Ibs. The fear of cholesterol and the unpopularity of fat have permanently removed many Americans from the dairy bar, and many rebellious teenagers, who often regard milk as a symbol of childhood, have switched to drinking coffee, soft drinks or beer.

Some of the 13 industry associations that sponsor Scott and National Dairy Month abhor such alarming talk, and turn the statistics to quite a different conclusion. Since the Agriculture Department's dairy products figures are stated in terms of milk-fat consumption (and 1 Ib. of butter is rated as 21 Ibs.), the Milk Industry Foundation argues that 80% of the drop in dairy products represents butter's loss to competing margarine and claims that consumption of fluid whole milk has actually increased 10.9 Ibs. since 1947.

Even while arguing with itself, the industry association has begun a $7,500,000 ad campaign to pitch the nutritional value of dairy products, to make milk drinking seem grown up and to convince weight watchers and cholesterol worriers that they have nothing to worry about. (Margarine makers spend some $22 million a year to convince them subtly that they do, and both sides quote the American Medical Association to make their points.) Every U.S. taxpayer has a stake in the dairy industry's success. Despite a drop in the U.'S. cow population from 20.6 million (1950-59 average) to 17.3 million this year, the industry's growing efficiency has nudged production up 5.8% in ten years to an expected 127 billion Ibs. of dairy products this year. Result: the Federal Government will pay out more than $500 million to buy and store the unconsumed surplus.

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