BUREAU OF MILK MARKETING 

 John B. Kelley, Director 



The Division continued to fulfill its assigned functions in requiring 

 compliance with state laws aimed at preventing disruptions in milk markets. 

 The year saw the finalization and distribution of an expert study compiled by 

 Case & Co. setting forth wholesale price and cost standards essential to prohi- 

 biting the sale of milk below cost and other predatory practices. A significant 

 number of milk producers have petitioned the Department for a hearing pursuant 

 to Section 12 of General Law Chapter 94A. This matter remains under con- 

 sideration. 



The Bureau of Milk Marketing continues to assume the bonding and security 

 responsibilities of the Department of Food and Agriculture under 94 Section 

 94A. Using several monitoring procedures, security requirements of proprietory 

 handlers buying milk from independent producers are received on a monthly basis. 

 Individual handler audits are conducted when necessary with security now held by 

 the Department in excess of one million dollars. 



This year saw the closing of the centralized electronic testing facility in 

 White River Junction, Vermont. Testing of milk for payment purposes is now 

 being conducted in- state at the different handling plants and receiving sta- 

 tions, adding to the monitoring responsibilities of the Bureau. 



Licensing of (4100) milk dealers at wholesale and retail was expedited by 

 new data processing techniques. Legislation has been filed by interested par- 

 ties to change the licensing requirements for bulk tank drivers to allow for a 

 more efficient and comprenhensive monitoring of that sector of the industry. 



The year witnessed a continuation of heavy capital investment by the fluid 

 handling industry in Massachusetts. This investment in new and renovated faci- 

 lities has increased efficiencies but most importantly will improve the quality 

 and life of product offered to the public. 



Milk production in Massachusetts aided by favorable conditions in relation 

 to other states and regions continues strong, increasing by two percent during 

 the year. A unit grain train and milling facility will begin operation during 

 the upcoming year in Ayer, Massachusetts. The existence of this facility along with 

 the deregulation of freight rates under the Stagger's Act has negated the 

 historical disadvantage of high freight rates born by the industry. 



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