markets; (2) producers in the Keene area have a certain competitive ad- 

 vantage over Maine producers which is not present in the other New Hmp- 

 shire markets. 



The increased use of trucks for shipment from northern areas to these 

 markets tends to reduce the significance of the rate differentials shown on 

 Table 4. However, any attempts of New Hampshire producers to make 

 greater use of rail movement should take these rates into consideration. 



The truck rates given in Table 5 for comparable markets and sources 

 show a greater relationship between distance and cost. 



Table 5. Truck Rates per 100 Pounds for Potato Shipments, 1950 



(minimum weight 20,000 pounds) 



^Class rates. New Hampshire Motor Rate Bureau. Smaller carriers may ship at lower rates. Contract 

 carriers are not required to file rates. Individual agreements are possible at less than these rates. 



"Class V rates, Interstate Commerce Act. Vehicles used exclusively for transportation of unprocessed 

 agricultural commodities are exempted from operation of this Act. 



With these transportation charges in mind, the question of relative 

 prices will be discussed. 



RELATIVE PRICES 



The major wholesale market in New England is in Boston and most 

 local sales are based on quoted Boston prices. The relation between the 

 price to producers at the Boston market and at various New Hampshire 

 markets showed a past price advantage to the local markets. 



A 10-year average (1938-49) of prices paid producers in October and 

 March at four New Hampshire markets and at Boston shows the percentage 

 advantage over Boston prices to be as noted on Table 6. 



Table 6. Per cent Wholesale Price Difference Between Boston and Four 

 New Hampshire Markets for the Period 1938-49. 



Market October March 



Manchester _j-5 _j_8 



Concord -j-5 _|_8 



Keene _^10 -fl2 



Portsmouth -[-15 -fH 



For potatoes to move from one market to another, the price difference 

 in the two markets must be greater than the cost of transportation before 

 it will pay to ship them. 



13 



