Supply and Price Relationships 



for 



New Hampshire Fluid Milk Markets 



By J. R. Bowring 

 Associate Agricultural Economist 



Introduction 



Milk production and sale is one of the major agricultural industries of 

 New Hampshire. An estimated 337 million pounds were produced in 1949, 

 of which 296 million were sold through regular markets to bring a farm 

 income of over 17 million dollars. 



The majority of this milk is consumed within the state but over a 

 third is shipped to Boston and other Massachusetts markets. 



Table 1. Estimated Disposition of Milk Produced in New Hampshire— 1949* 



^^^ "Tooo lbs. 



New Hampshire 185,740.5 



Boston 82.930.0 



Lowell-Lawrence-Haverhill 23.487.8 



Fitcliburg-Gardner-Springnehl 2,653.3 



Portland, Maine 573.3 



Total 295.384.9 



♦Some small amounts are imported from Vermont and Maine, but the above figures on exports 

 are net of imports. 



The Boston market, both as a consuming center and as a source of 

 supply for secondary markets in Massachusetts, is the predominant market 

 in northern New England. This means that the prices established in the 

 Boston market are reflected in the prices paid in the supply areas and 

 secondary markets close to that city. 



New Hampshire supplies a large proportion of her production to the 

 Boston market. The price paid to these producers are Boston prices, less 

 handling and transportation costs. Therefore, milk prices in New Hamp- 

 shire must be related to Boston milk prices. This influence will be pre- 

 dominant in those areas close to the Boston market assembly plants in 

 the Connecticut valley. 



The relative importance of these plants as sources of supply for the 

 Boston market is shown in Table 2. 



Producer-distributors and assembly plants service secondary markets 

 throughout the state. The location of those plants assembling milk from 

 more than 20 producers and those assembling predominately for the Boston 

 market is shown in Map 1. 



