Production and Utilization of 

 Milk By-Products in New Hampshire 



By J. R. Bowring'' 



Introduction 



MILK sales are one of the major sources of farm income in New Hamp- 

 shire. In addition to farm income there are many truckers, workers, 

 and dealers who gain their livelihood processing and distributing milk. 

 Milk is sold by dealers as fluid whole milk and in the form of milk products. 

 The sale of fluid whole milk delivered to homes, stores, and restaurants is 

 the primary source of income. Sales of by-products such as heavy and light 

 cream, flavored drinks, cottage cheese, and ice cream are supplementary to 

 the fluid milk sales. Nevertheless they are an important part of the dairy 

 industry. It is our purpose to measure the extent of these sales and to dis- 

 cuss problems associated with their pricing and procurement. 



Procedure of Study 



Most milk dealers are registered with the New Hampshire Milk Control 

 Board. There are a few exceptions in isolated regions where consumption 

 and production is small, accovmting for less than ten percent of the number 

 of dealers, and less than ten percent of the quantity sold. For purposes of 

 this study, the registered milk dealers were classified by size of license. 

 Those selling less than 100 quarts per day were excluded, because the 

 majority of these are producer-distributors who have little or no surplus 

 disposal problems. The remaining dealers were selected to give equal repre- 

 sentation to size group and to geographic location in the state. 



The state was divided into seven regions to coincide with the major 

 secondary milksheds in the state. In the seven regions one dealer from 

 each of seven size groups was selected. Size was determined by size of 

 license held. After interviewing the sample, some adjustment for size was 

 necessary and two dealers were omitted because they turned out to be com- 

 mission men for other processors, without their own processing facilities. 

 The location of the sample interviewed is shown in Figure 1. The findings 

 from ths survey form the basis for the following analysis. This representa- 

 tive sample is presumed to be typical for the dealers in the state. 



* Associate Agricultural Economist, Agricultural Experiment Station. 



3 



