THE SPRINGFIELD MILKSHED 11 



varies and frequently does entail additional costs. Determination of the cost- 

 price relationships is not within the scope of this study. It is not, however, to be 

 overlooked in a consideration of the organization of supply. 



In contrast with these somewhat dismal possibilities due to grade differentials, 

 is a more optimistic one based on the known fact that a market exists which will 

 and can pay a premium for a higher quality product. The market may be small; 

 the quality characteristic, frills so far as a healthful supply is concerned; but 

 buying power is there and the dealer in his desire to increase his net income, to 

 provide outlets for shippers that will enhance the value of the product, or to 

 create good will, endeavors to satisfy the market. 



To that end, the dealer will of necessity be the promoter and in turn extend to 

 his shippers the opportunity of filling the requirements. Such problems as might 

 arise would be due to the selection of producers to whom the opportunity is ex- 

 tended. To avoid charges of favoritism or discrimination, presumably the 

 differential paid for premium milk should be no more, in the long run, than 

 sufficient to cover the additional costs of producing and getting it to the market. 

 Whether or not such a nice adjustment has developed can scarcely be determined 

 from analysis of cost data. In substitution for cost analysis, therefore, one might 

 ascertain whether shippers of Grade B are anxious to switch over to the Grade A 

 list, whether Grade A shippers would prefer to change to the Grade B list, or 

 whether both groups are apparently satisfied. Shifts in both directions took 

 place. Since only a few shippers were concerned, no effort was made to determine 

 the causes reponsible for the shift. 



Significance of Scale of Production 



State regulation of various aspects of milk marketing came into being to protect 

 the Commonwealth's milk supply. In the mandate, however, nothing is said as 

 to whether the state is to protect the commercial milk supply or all who wish to 

 become dairy farmers. The granting of assistance from the state to a special 

 group should be and presumably is based on the assumption of certain respon- 

 sibilities by the group so favored. Does any difference exist, however, in the 

 desire, the capacity, or the ability of the dairy farmers on varying scales of pro- 

 duction to assume responsibihty? If so, are the benefits derived by the dairymen 

 individually or in groups commensurate with the degree of responsibility assumed? 



What is the nature of the dairy farmers' responsibility? Is it similar to that of 

 distribution? The distributors have maintained, for example, for years that their 

 responsibility was to assure the public wholesome supplies of milk in the quan- 

 tities desired, at the time and place designated. This obligation was self -assumed; 

 taken on, to be sure, as a matter of self -protect ion, but none the less taken on. 



Under this sort of an arrangement, the dairy farmer had obligations to no one 

 but himself. He met the requirements of the handler who took the daily produc- 

 tion from the farm. Failure to meet those standards generally meant that the 

 dairyman lost his market. His was the greatest loss. 



Milk control has changed the relationships which prevailed during the past 20 

 years between the dairy industry and the public. The industry gave signs, 

 reaching a climax in 1932 and 1933, of failing in its obligations to maintain without 

 legal aid an adequate supply of high quality milk. It is sufficient to point out that 

 the returns from the sale of milk had been and were far from sufficient to enable 

 dairymen to maintain their herds. As conceived by the proponents of milk 

 control and agricultural reform and as inferred by the state, not only were the 

 herds and related productive appurtenances to be maintained, but some means 

 should be provided that would keep the present farm operators in business; 



