THE SPRINGFIELD MILKSHED 29 



REVIEW 



This stuch' is the third of a series pertaining to the supply of milk for the 

 Springfield-Hohoke-Chicopee area. The first^i was a detailed analysis of milk 

 hauling from one section of the milkshed to the market. The second^^ was an 

 analysis of dealers' product-costs. 



The three studies thus far completed offer some basis for making changes which 

 it seems would improve for the farmer and for the industry the general conditions 

 and returns from the sale of milk. AnA'one familiar with milk marketing rec- 

 ognizes the conflicting interests of buyer and seller; of the individual and the 

 group; of general welfare and personal power; of individual weaknesses and group 

 strength; of individual strength and group weaknesses. 



Our attitude has been one of moderation. Our feeling has been that changes 

 should be gradual; that even though injustice exists care should be taken in 

 eliminating it, lest it be merely shifted from cue person to another. 



A program of this sort is of course dependent upon a common appreciation of 

 the problems facing the industry, a general desire for their removal, and con- 

 certed determination directed towards that end. 



To date the Milk Control Board has felt that prices should be fixed F.O.B. 

 the market. The studies indicate that a change in the policy to one of pricing 

 F.O.B. the farm for secondary markets has much in its favor. A move of this 

 sort is in a sense a major operation. It is one which offers the patient the pos- 

 sibility of a healthy existence. 



Any proposed pricing technique should be examined in the light of its objective. 

 Fortunately for most fluid markets, these objectives are fairly well stated in the 

 legislative briefs supporting the state milk control laws. The basic assumption 

 around which the network of milk control developed is that an adequate supply of 

 high quality fluid milk is necessary to the public welfare. In order to assure the 

 public an adequate supply of milk, the state and the federal governments have 

 decided that the dairy industry, i.e., farm production, should be protected against 

 the more undesirable aspects of competitive pricing. Accordingly, most control 

 laws have stipulated that buyers should own their purchases of milk at the same 

 class prices at the market. Additional refinements have been incorporated into 

 milk control laws or regulations, but pricing on a uniform basis is generally re- 

 garded as the one principle that is indispensable. Originally uniform prices 

 meant uniform class prices and applied to the dealers' purchases F.O.B. the 

 market, with the result that in some milksheds there still existed under state 

 control a noticeable variation in the blended prices received by shippers. With 

 the development of federal orders and the introduction of the market pool, 

 uniform prices F.O.B. the market became a reality to shippers and the uniformity 

 of price to dealers was extended from class prices to the blended price or product- 

 cost. 



Many markets, especially the secondary intrastate ones, use the dealer-pool 

 with prices on a class basis F.O.B. the market. Trucking, with few exceptions, 

 is the only assembly facility needed and the arrangements for it are generally 

 made by the dealer. The costs of getting the milk from farm to city plant are 

 mostly met by the farmer. The costs are defrayed by charges based on rates which 

 are set by the dealer. This sort of organization and arrangement has provided 

 the public with an ample supply of milk and has given the farmer a dependable 

 outlet for his farm production. 



■''Massachusetts Agr. Exp. Station Bulletin No. 363. 

 ^^Massachusetts Agr. Exp. Station Bulletin No. 365. 



