THE SPRINGFIELD MILKSHED 31 



erally his volume of business is not large; his size of load accordingly small, and 

 unit transportation charges high. In order to keep aggregate costs at a minimum, 

 he will then operate in a nearby area. 



Handlers on the use-plan who have the highest ratio of fluid sales to purchases 

 do a larger volume of business than the flat-plan dealers but considerably smaller 

 than the average of all dealers. With a similar desire to keep aggregate costs 

 down, they will operate their trucks in areas adjacent to and on the outer side 

 of the flat-plan territory. Although the length of haul for this group will be 

 greater, the larger load will keep the unit costs down. 



Finally, on the outer fringe will be found the handlers with the larger volume 

 of business. Here, also, long hauls will mean higher total transportation costs. 

 Large loads, however, will tend to keep unit costs low so that the average cost 

 or the class cost per hundred pounds of purchases will be kept down. From an 

 industry point of view, these are desirable changes. 



Introduction of pricing F.O.B. the farm might and probably would disturb 

 seme producer-handler arrangements. So far as the Springfield-Holyoke- 

 Chicopee market is concerned, these changes would probably take place among 

 the handlers buying on a flat plan and among handlers buying only a relatively 

 small volume of milk. No immediate changes other than these would necessarily 

 occur. 



So far as handlers are concerned, the results should be generally beneficial. 

 Advantages now enjoyed by a few would be removed and a more nearly com- 

 petitive situation would exist in product-costs. The method would enable them 

 to retain whatever benefits were inherent in an efficient collection system. They 

 could utilize without question their truckmen as good-will men. In contrast 

 with the rather positive effects are the unpredictable reactions. Handlers might 

 object to pricing F.O.B. the farm on the grounds that they might have to pay 

 the same Class prices in the country as they now pay in the city. Some might 

 try to require producers to bring in their shipments without due allowance for the 

 service. For the most part, however, the difficulties could be readily overcome, 

 if the industry were sincerely interested in bringing about conditions which would 

 be generally desirable rather than the various groups seeking individual advan- 

 tages. 



There is an even more significant question facing the industry than that of 

 harmonizing the present elements. Practically all the legislation underlying 

 state and federal control is based on the premise that an increased consumption 

 of fluid milk is indispensable to public welfare. There has been little questioning 

 of the premise even though some might cast doubt on its validity. Since the 

 public seems willing, however, to accept the recommendation, the objective of 

 milk control at least becomes specific. 



A low per capita consumption of milk is caused by a number of factors; some 

 people dislike it, some people think it isn't worth the price, and other people 

 haven't the income to buy it at any price. For the most part, unfortunately, the 

 limiting elements are economic and as such are not easily influenced by the 

 recommendations of nutrition experts. If milk is indispensable to public health, 

 the needs of the public should be determined and a program devised which would 

 facilitate attaining that goal. If the use of milk generally is only desirable, like 

 fruit juices, but not indispensable to the welfare of the state, then the efforts to 

 maintain farm income and farm production should perhaps be reestablished. 



People in many of the states have had sufficient experience with milk control to 

 appreciate the necessity of clear designation of the premises underlying it. Rather 

 superficial examination of the record would indicate that the control agencies 

 have concentrated on maintaining the supply, overlooking, perhaps, the fact that 



