5. Farm Tank Use and 

 Size of Producers 



There was a larger proportion of 

 small producers with cans than of 

 small producers with tanks. A dis- 

 tribution of producers by size groups 

 shows that 43 percent of the can pro- 



ducers were shipping less than 500 

 lbs. per day compared with 16 per 

 cent of producers on tanks. The 

 adoption of tanks was perhaps re- 

 lated to the greater financial ability 

 of the larger producers where this 

 came from lower costs of production 

 and superior credit standing. 



Table 24. Percentage Distribution of Farms Shipping Milk in Cans 



and in Tanks, by Production Size Group, for Vermont, 



Maine and New Hampshire 



Size of Group 

 Lbs. per Day 



Can Users 



Tank Users 



499 and under 



500 - 999 

 1000 and over 



All groups 



Percent 



43 



46 

 11 



100 



Percent 



16 



52 

 32 



100 



There is some indication that the 

 purchase of tanks was proportion- 

 ately heavier among the larger pro- 

 ducers than those shipping less than 

 1000 lbs. per day. 



6. Dealer Operating Problems 

 Arising from Seasonal 

 Production 



The conversion to 100 percent tank 

 assembly by a proprietary milk 

 dealer who does not want to lose 

 producers or by a producer cooper- 

 ative may be made more difficult be- 

 cause of seasonal production. The 

 financing of farm tanks becomes 

 more difficult when income is un- 

 even. Seasonality of production pre- 

 sents the dealer with disposal prob- 



lems during the excess months and 

 it may result in procurement prob- 

 lems during other months. These op- 

 erations add to his total cost and 

 will result in lower returns per unit 

 of milk handled. 



The highly seasonal producers are 

 more predominantly in the smaller 

 size classes, which in general have 

 lower income. To this extent the 

 plant will be hampered in its con- 

 version to a basis of 100 percent 

 tank assembly. Refusal to accept sup- 

 plies of milk because of the increased 

 transportation and plant costs associ- 

 ated with high seasonal production 

 will solve the problem for the dealer 

 provided other sources of milk are 

 available. 



23 



