THE SPRINGFIELD MILKSHED 



23 



3.7 percent basis and only slightly more upon further adjusting for trucking 

 charges. In other words, for the shippers selling to any given dealer the differ- 

 ences in butterfat are a much more significant cause of variation in the actual 

 prices received than are differences in trucking rates. 



As the amount of variation in shippers' prices within dealer groups declined 

 with progressive refinement, the amount of variation between dealer groups 

 increased. The mean squares between dealer groups increased slightly when 

 prices were adjusted for butterfat and rather noticeably after further adjusting 

 for trucking charges. This result is probably to be expected. It simply means 

 that there are scarcely noticeable differences in the butterfat content of the pur- 

 chases of milk made by dealers; that the amount of variation became slightly 

 more pronounced when the butterfat was adjusted to a common standard of 3.7 

 percent. 



Table 15. — Anwlysis of Variance in Milk Prices Received by 1174 Pro- 

 ducers IN the Springfield-Holyoke-Chicopee Milkshed in 1935 



A comparison of the mean squares before and after adjusting for trucking 

 charges brings out the relatively greater amount of variation in trucking charges 

 between dealers compared to that existing within dealers. 



In addition to fat, trucking charges, and dealers' product-costs, other probable 

 causes of variation in shippers' prices could have been seasonality and the ratio 

 of ratings to deliveries (i.e., for those shippers selling on a rating plan). Size of 

 rating means little except when expressed in relationship to deliveries or when 

 considered with due regard for the handlers' use of the plan. With due regard for 

 these items, shippers to dealer A were grouped on the basis of having shipped 

 more than their ratings or having shipped just their ratings. Shippers selling less 

 than their ratings would be in the same price position as those having ratings and 

 deliveries in adjustment. 



