tinued supply of milk from farms. In addition, if the spread between farm 

 price and retail price is to be minimized for the benefit of consumers and 

 to maintain milk consumption, economies in transportation offer such an 

 opportunity. 



Previous Work 



Problems of retailing and transportation have been the subject of previous 

 studies in New Hampshire. Rinear and Moore disclosed the advantages of 

 consolidating milk routes in Retailing Milk in Laconia* 



A description of milkshecls and the location of the major markets 

 was completed by Alan MacLeod in 1937. f In the first of a series of 

 studies on the transportation of New Hampshire milk, MacLeod and Ger- 

 aghty found great disparities in the trucking charges and showed varying 

 degree's of imperfect competition in the establishment of rates which offered 

 possibilities of reduced costs. % A further study indicated ways in which 

 transportation costs could be reduced by reorganization and consolidation 

 ot trucking routes. 



In The Local Structure of Milk Prices in New Hampshire Markets% 

 MacLeod outlined impediments to producers' response to different market 

 prices. With restrictions on the choice of markets to which producers could 

 ship in New Hampshire, they found it "easier to enter the Boston market 

 than most local secondary markets." MacLeod found elements of monopoly 

 restricting competition without adding efficiency of operation. "Public- 

 control . . . has not succeeded in bringing about economies of assembly." 

 he said. 



Under the impact of World War II various economies in the assembly 

 and distribution of milk were instituted, such as every-other-day delivery 

 and the elimination of special deliveries. § Further savings in the distance 

 travelled could reduce the cost of distribution.] | The series of studies on 

 Efficiency of Milk Marketing in Connecticut by the Storrs Agricultural 

 Lxperiment Station provide a detailed background for improving tech- 

 niques in pricing and assembly of milk. 



This study follows in large measure the procedure of number one in 

 the above series, Supply and Price Interrelationship for Fluid Milk Markets. 

 \ regional study on price relationships in the northeastern milk markets*" 

 provides the framework for this study of secondary market pricing in New 

 Hampshire. 



Market Prices and the Location of Supplies 



Hie prices paid for milk at the farm are prices at the receiving station or 

 manufacturing plant less the cost of transportation from the farm. The 



*Bull.-tin 272. New Hampshire Agricultural Experiment Station. Jinn- 1933. 



tlhe Milk.ilirds <>/ New Hampshire. Bulletin 293. New Hampshire Agricultural Experiment Station. 



'-/"«*> Transportation of 7\'en Hampshire Milk. 1. Vnalysis of Trucking Charges. \. MacLeod and 

 \:. I.. Geraghty. Bulletin 307. _'. Reorganization oJ Truck Routes. Uan MacLeod. Bulletin :>2.i. New 

 II pshire Agricultural Experiment Station. 



li Bulletin 332. New Hampshire Agricultural Experiment Station. 



§The Colebrook Plan, Four ) fir* I. -iter by Holmes, Woodworth, >' - i'l Bredo. Agricultural Economics 

 Research Mimeograph No. 1. New Hampshire Experiment Station, 1917. 



\\Possible Economics in the Assembly and Distribution of Milk in Vew England by Alan MacLeod. 

 Storrs, Connecticut, 1944. 



**Price Relationships and Supplt Areas ol Northeastern Milk Markets. Preliminary Draft. U.S.D.A., 

 B.A.E., 1930. 



