New Hampshire producing areas. This has increased the advantage of 

 Maine potatoes shipped by rail on the southern markets. To the extent 

 that similar trucking facilities are adopted by the two areas this advantage 

 is eliminated; but such considerations must influence the most profitable 

 location of production in relation to markets within the state if rail ship- 

 ments are adopted. 



New Hampshire prices exceeded Boston wholesale prices in Concord, 

 Keene, and Portsmouth in 1949. Using carlot rates from Boston as trans- 

 portation charges, there was a definite advantage for Keene district whole- 

 salers to buy on the Boston or Massachusetts markets in preference to tho 

 prevailing announced local market price. It was equally profitable for 

 Portsmouth district wholesalers to buy in Boston as from local producers, so 

 that quality and reliability of supply would influence their decisions. 



A lower government support price for Maine potatoes relative to New 

 Hampshire increased the competitive advantage of Maine potatoes on local 

 markets, a condition which may have longer run effects on relations between 

 local producers and near-by markets, particularly where local growers have 

 preferred to sell to the government. 



The complaints of wholesalers and retailers about New Hampshire 

 grades, appearance, and quality appear directed at the smaller producers who 

 unload their crops at digging time without use of a sorting table. This sea- 

 sonal marketing has the effect of overloading the markets for a short period, 

 with a consequent reduction in price and perhaps a bad advertisement for 

 local produce. Producers with storage facilities attempt to even out their 

 supplies during the year. This regularity of supply is a major factor in 

 the decisions of wholesalers, retailers, and hotel trade as to where to buv 

 their potatoes. 



The use of potatoes as credit at the local store has given way to a more 

 highly organized competitive industry requiring standard quality, evenness 

 of supply through the year and attractive packs at a price which will pay 

 returns to the handler. The government support prices may have protected 

 small growers from bearing the full consequences of poor grading and care- 

 less harvesting, but pressure from Maine commerical growers is making the 

 job for local growers more and more one of increasing efficiency if these 

 local markets are to be retained. 



To meet this competition growers might benefit from centralized market- 

 ing and grading. The scattered location of producers should not prevent 

 regional storage houses either co-operatively owned or owned by larger 

 growers with the available storage capacity, from consolidating supplies 

 and risk. The benefit to growers would come through re-established trade 

 outlets by quality guarantees, regular marketing, and centralized price 

 manipulation to meet competition. 



The responsibility for such an organization rests with producers. The 

 Agricultural Services Inc., or Merrimack Farmers Exchange are organiza- 

 tions which could expand their facilities and services to meet the needs of 

 producers in marketing. Unless such measures are taken the New Hamp- 

 shire potato industry as a source of local market supplies can be expected 

 to decline under the increased competition for a falling consumer market, 



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