Table 4. Summary of Daily Sales of Milk Equivalent by Farmers and Net 

 Daily Surplus or Deficit Milk Surpluses in New Hampshire by Hundred Weight* 



Daily Milk Fluid Fluid Milk, Farm Sales Farm Sales Minus 



Sales by Milk Cream, and Minus Con- Consumption of 



Farmers Ice Cream sumption, of Fluid Milk, 



Fluid Milk Crecm, Ice Cream 



Nov.-Dec. 1947 6,358 4,241 5,095 2,117 1.263 



May-June 1948 8,610 4,699 5,930 3,911 2,680 



*Price Relationships and Supply Arras of Northeastern Milk Markets Preliminary draft. JJ.A.E. 

 U.S.D.A. 1950. 



It was possible to estimate the daily per capita consumption of fluid 

 milk and cream by the non-farm population at 0.945 lbs. milk in the fall 

 months and 1.031 lbs. milk in the summer with an average estimated yearly 

 consumption of .08 lbs. of cream per day. 



The development of transfer costs or all costs associated with the. move- 

 ment of milk was based on cost data from the northeast region. The term 

 includes costs of assembling milk in the country, receiving and cooling 

 at country stations, and shipment by truck or railroad to the market. It 

 also includes costs of direct truck shipment from farms nearby the market 

 and costs of receiving at city plants. The price paid to the farmer plus 

 transfer costs equals the supply price f.o.b. the market. t 



Table 5. Surplus or Deficit in Counties by Hundredweight Per Day 



Carroll 



Coos 



Grafton 



Sullivan 



Belknap 



Hillsboro 



Strafford 



Rockingham 



Cheshire 



Merrimack 



Given the production and consumption by townships and the cost of 

 transfer, it was possible by a process of adjustment to arrive at those prices 

 which would provide each market with an adequate supply and also to 

 outline the boundaries between markets. The boundaries exist where the 

 farm price, less transportation and handling costs, is equal between adja- 

 cent markets. In this way transportation costs will be minimized. 



New Hampshire is in the Boston milkshed. Within this milkshed are 

 secondary markets such as Lowell, Lawrence or Manchester competing for 

 supplies. The prices in secondary markets must therefore bear a relation- 

 ship to the Boston market price. This method of allocating supplies be- 

 tween markets entails the use of price differentials and not absolute prices. 

 The prices in New Hampshire can therefore be expressed as differentials 

 from the Boston price. 



The price differences in terms of cents per hundredweight at the 

 farm are shown in Maps 3 and 4. The Map 3 outlines are for the spring 

 flush period and Map 4 outlines for the fall short period. The seasonality 

 of milk production necessitates a shift in market areas as supplies change. 



