Measured in terms of cash receipts from farm marketings, dairying is the second largest agricultural activity in California, and California is the third most important dairy state in the country. In 1962, approximately 10,000 farms produced and sold slightly more than 8 billion pounds of whole milk for a total of $398 million. This represents nearly 12% of the total farm income for the State. Furthermore, it has been estimated that California families spend about one-fifth of their food dollar for dairy products. The stability of the dairy industry therefore is clearly of vital concern. And when there is mounting evidence, as there is today, of a critical imbalance between the production and consumption elements of the industry, every effort is required to achieve an understanding of its underlying causes so that corrective action may be taken promptly.