PRODUCTION AND PRICES OF MILK 

 IN THE SPRINGFIELD-HOLYOKE-CHICOPEE MILKSHED IN 



1935* 



By Alfred A. Brown, Assistant Research Professor, and Mabelle Booth, 

 Technical Assistant, in Agricultural Economics and Farm Management 



INTRODUCTION 



In the spring of 1934 the people of Massachusetts through their General Court 

 adopted, in the interests of local dairymen, a program which was certain to cause 

 an increase in the consumer price of milk. There was nothing subtle in the presen- 

 tation of the program to the public. The facts and assumptions were simply 

 stated. They appeared reasonable. 



In general the prices which farmers were getting for milk were exceptionally 

 low; the prices which they were paying for goods or services were not propor- 

 tionately so. Both had been declining since the middle or late twenties. During 

 the early phase, the balance had been fairly well maintained between the price 

 for which milk sold and the cost of goods and services used on the farm. The 

 severe disturbance to finance and industry in 1929 touched off a sharp decline 

 in prices. Milk prices dropped faster and lower than did prices of some items 

 which farmers bought. The lack of balance between farm costs and farm prices 

 became so severe both in degree and duration that many farmers were faced with 

 the loss of their farms. 



This course of events was characteristic of the capitalistic system. By it those 

 individuals who by errors of judgment were caught in the backwash were normally 

 forced out of business; by it the most competent producers, whether of milk or of 

 mousetraps, were selected to serve society. Circumstances were such, however, 

 that the public could ill afford to give the system free rein. Some farmers would 

 be included in the purifying process because of factors beyond their control. Of 

 more importance, however, was the threat to the fluid milk supply. 



Since the latter part of the 19th century, adequate supplies of wholesome milk 

 have been regarded as necessary to public welfare. Many measures have been 

 taken during the past fifty years to protect the quality of the supply. The op- 

 erations of the market, however, have been relied upon to safeguard the quantity 

 of the supply. Threats of serious shortage had occasionally occurred under this 

 method, and in the spring of 1934 direct aid by the government in pricing was con- 

 sidered necessary if the supply was to be maintained. Assistance to the dairy 

 industry was facilitated then by the national program to revive all agriculture in 

 the effort to stimulate business. Under the circumstances, though, it is probable 

 that some sort of governmental aid would have been given to the producers of 

 fluid milk even in the absence of a general program. 



Sound regulation of marketing depends in part on a comprehensive under- 

 standing of the productive organization and the marketing disposal facilities of 

 the industry. To this end, data on the Springfield-Holyoke-Chicopee milkshed 

 have been gathered, tabulated, and analyzed. Studies on Milk Cartage and 



*Data for this study, like those preceding it. were secured with the cooperation of dairy farmers, 

 producers, cooperative associations, distributors, and public agencies having an interest in the 

 milk industry. Many persons in the Department of Agricultural Economics and Farm Manage- 

 ment contributed to the study. 



