which conditioned their decision to use a particular method of balancing. 

 Information on the present methods of buying and selling milk was obtained, 

 partially from this survey and also from information obtained in the initial 

 phase of the regional study which considered the production-consumption 



balance of milk in the northeast region. 3 



An Explanation of Terms and Categories 



The term balancing is used in this study in two connections. One is used 

 to mean the equating of receipts from all sources with the sale or disposal 

 of these receipts, excepting daily and weekly variations. The other is used 

 to mean the equating of receipts from all sources with fluid sales alone. In 

 this latter connection milk and milk products not included in fluid sales are 

 considered as surplus. 



The criteria of classifying milk products as fluid sales or surplus is based 

 primarily on the method of disposal. For example, bottled products sold on 

 dealers' retail and wholesale routes (including platform sales) are fluid 

 sales. This includes fluid whole milk, fluid skim milk, fluid cream and flavored 

 milk and milk drinks. Surplus milk would consist of fluid whole milk, fluid 

 cream or skim milk sold to another dealer, milk or cream used in manu- 

 facturing, or dumped skim milk. 



Manufacturing facilities include the equipment needed for processing 

 surplus milk such as the manufacture of ice cream and butter. Cottage cheese 

 is made in these plants to meet local demand, but more accurately it is a 

 by-product of the separation process. Inasmuch as the local demand for 

 this product is usually small and considerably less than the quantity of skim 

 milk available for processing, it is considered a surplus product. 



The Statewide Surplus Problem 



The magnitude of the surplus problem in the four states studied for the 

 year 1954 is shown in Table 1. This tabulation shows the total quantities 

 of producer milk received at plants (including receiving stations for outside 

 markets) and the sales of fluid milk within the state. 



Two of these states, Vermont and New Hampshire, were surplus produc- 

 ing. The quantity of market milk supplied by producers to plants located 

 within the state exceeds the quantities used for fluid purposes. The other 

 two states were deficit producing areas. 4 The quantity sold for fluid use 

 within the state exceeds the milk supplied by producers. Since fluid sales are 

 relatively uniform throughout the year, the amount of variation in the 



3 Jeffrey, Arthur D., The Production-Consumption Balance of Milk in the Northeast 

 Regions, Northeast Regional Publication No. 29, A.E. 1055, Cornell University Exper- 

 iment Station, June 1957. 



McAllister, C. E., Vermont's Milk Dealers, Vermont Agricultural Experiment Station 

 Bulletin 594, June 1956. 



Bowring, J. R., Production and Utilization of Milk By-Products in New Hampshire, 

 University of New Hampshire, Agricultural Experiment Station Bulletin 441, June 1957. 



4 West Virginia has an annual surplus, but does not produce sufficient milk in 

 November to meet fluid needs. 



