Bureau of Milk Marketing 



John B. Kelley, Chief 



The Boston fluid milk market serves a population of 8 

 million people. It encompasses Massachusetts, 

 Southern New Hampshire, Rhode Island, and parts of 

 Connecticut. The increase in the commercial disap- 

 pearance of milk along with declining support prices 

 continues to cause extreme tightness in the raw milk 

 available in this market. 



Through 1988, premiums continued to be market- 

 driven. Along with the RCMA premium, there were ad- 

 ditional over-order premiums. As in the past, prices in the 

 Boston market remained competitive with other regions 

 of the country. 



In other areas affecting milk marketing in Mas- 

 sachusetts during 1988, the Massachusetts Producer 

 Security Trust Fund showed continued growth. Under 

 Massachusetts General Law Chapter 10, Section 49, 

 Chapters 20 and 21, C.M.R. 8.00, independent producers 

 shipping to proprietary handlers pay five cents per 

 hundredweiglit into the Fund. Receiving handlers make 

 payment to the Department before the twenty-fifth day of 

 the month for milk received during the previous two 

 payment periods. All payments are cross-checked by the 

 Bureau against audited receipts on a monthly basis. 

 Proceeds are invested by the state Treasurer in the 

 Municipal Depository Trust. 



Proprietary handlers with Massachusetts producer 

 payrolls are required to post bond or other security, 

 regardless of whether the receiving handler is located 

 in-state or out-of-state. The security posted must equal 

 the value of payment for one payment period plus ten 

 percent. There is no limit on this bond. The security must 

 comply with provisions of Massachusetts General Law 

 Chapter 94, Section 42, and is reviewed on an ongoing 

 basis. 



The Bureau continues its policy of licensing fluid milk 

 handlers operating in Massachusetts, retail estab- 

 lishments selling milk in the Commonwealth, bulk tank 

 drivers, and individuals testing milk for butterfat content. 

 Educational seminars for bulk tank drivers were held in 

 different parts of the state during the year. 



Under Mass. General Laws Chapter 94, the butterfat 

 inspector continued to cross-test and check both on-farm 

 and in-plant verifying payment to producers. 



An automatic data processing management system is 

 used for all licensing, security fund, and bonding data 

 input. 



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