Table 1. Total Milk Production, Number of Cows on Farms, 

 and Milk Production per Cow, Northeast Dairy Area, 1956-1966* 



1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 



Total milk production in million pounds 

 23,919 23,485 23,705 23,763 24,566 25,274 25,504 25,655 25,747 25,703 24,903 



Milk cows on farms in thousands 

 3,415 3,327 3,241 3,110 3,106 3,101 3,071 2,981 2,898 2,798 2,654 



Milk production per cow in pounds 



7,004 7,059 7,314 7,641 7,909 8,150 8,305 8,606 8,884 9,186 9,383 



* Milk Production, Disposition, and Income, U. S. Department of Agriculture, 

 Statistical Reporting Service, Crop Reporting Board, Washington, D. C. 



Total milk production in the Northeast increased steadily from 

 1957 through 1964. The year 1965 marked the first time in eight years 

 that there was a drop in total production. Yet during the period 1957-66 

 total milk production increased by 6 percent.^ Over this period cow 

 numbers dropped by 20 percent. Milk produced per cow increased by 

 33 percent. These changes reflect improvements in the technology of 

 dairy production. The increase in output per cow is the result of better 

 herd management, improvements in forage quality, increased concen- 

 trate feeding, and closer culling of herds, as well as improvements in the 

 genetic base of dairy cows. 



Other changes in technology which have occurred include the con- 

 tinued substitution of capital for labor through use of mechanical feed, 

 manure, and milk-handling equipment. Greater use of new varieties of 

 hybrid corn and improved hay species also characterize the technologi- 

 cal change on Northeast dairy farms. 



Market Structure and Pricing 



The market structure of the eleven Northeastern States is dominated 

 by six large Federal Order markets. These six markets serve approxi- 

 mately 80 percent of the population of the region. Several States in the 

 Northeast have State milk control boards or commissions which are 

 functionally integrated with the Federal Orders for pricing to the pro- 

 ducer. The actual level of prices is determined in various ways in the 

 several marketing orders. Generally, the fluid use price is based on sev- 

 eral economic indexes as well as supply-demand criteria. The nonfluid 

 use is often tied to the average United States price for manufacturing 

 milk and the butter price. Prices of the several classes of milk are 

 usually the same in overlapped Federal and State market regions. But 

 since the utilization rates for the various classes may differ between 

 State and Federal destinations, the blend price paid farmers often differs 

 between destinations. 



The Federal and State milk orders in the Northeast impose an 



■* See Table 1 and Figure 1. 



