maximum amount is so used. However, there are demands for milk by- 

 products and there are unpredictable changes in demand for fluid milk 

 which require certain necessary reserves. The surplus sales average between 

 18 and 25 percent of total milk purchases in New Hampshire. The seasonal 

 variation is apparent in Table 2. 



Table 2. Surplus Sales as Percent of 

 New Hampshire Dealer Total Pur- 

 chases by Months in 1955 



(Whole Milk Equivalent) 



Table 3. Surplus Sales as Percent of 



New Hampshire Total Milk Purchases 



by Dealer Size— 1955 



Jan. 



Feb. 



Mar. 



Apr. 



May 



June 



July 



Aug. 



Sept. 



Oct. 



Nov. 



Dec. 



18.4 

 19.6 

 20.3 

 21.4 

 23.8 

 25.3 

 23.9 

 23.8 

 23.7 

 20.3 

 20.3 

 21.0 



In addition, there is some variation in the proportion of surplus sales 

 according to the size of the dealer. The largest dealers have a larger per- 

 centage of their total sales as milk by-products than the small dealers, with 

 the possible exception of the producer-distributors represented by the 100- 

 200 qt. license group (Table 3). 



How Surplus Milk Is Used 



Whole Milk and Cream 



Estimates of the utilization of surplus milk, including the purchases of 

 products for resale, show that heavy cream is the most important outlet. 

 The other uses will depend on the particular dealers' processing facilities. 

 For example, the smaller producer-distributors will separate their heavy 

 cream requirements and then sell the remainder of their surplus fluid milk 

 to other dealers. The skim milk left from the cream is either dumped or fed 

 to livestock. Dealers with processing plants, on the other hand, will be able 

 to produce flavored drinks, ice cream, and skim milk products. 



In order to obtain a picture of utilization, in Table 4, the cream used in 

 heavy and light cream, butter, and ice cream was converted to whole milk 

 equivalent. This, plus the whole milk used in these products and the whole 

 milk sold at blend or surplus prices made up the total surplus milk handled 

 by dealers during the year 1955. The high proportion which is used as 

 cream is particularly apparent in the medium-size dealer groups. 



Skim Milk and Skim Milk Products 



The skim milk left after separation is utilized as cottage cheese, flavored 

 drinks, buttermilk, powder, or as non-fat fluid milk for sale at retail. It is 

 also dumped or used for livestock feed. The pattern of utilization will vary 



