PRODUCT-COSTS TO MILK DEALERS 



Producers 37 Price at the Market 

 occording to Settlement Plan 



Pounds of Rated 

 ililk at Rated Price 



Percentage 

 of Ratings 

 Sold OS 

 Fluid ot 

 Class I Price 



Percentage 

 of Ratings 

 Sold OS 

 Creom ot 

 Class n Price 



Pounds of 

 Excess over 

 Ratings Sole 

 at Closs " 



Price 



Percentage of 

 Deliveries Sold 

 as Fluid ot 

 Class I Price 



Percentoge of 

 Deliveries Sold 

 as Cream ot 

 Class H Price 



All Deliveries 

 Paid for of 

 Class I Price 



Blended Price 



Composite Price 



I Flat 



Trucking 

 Chorges 



Con 

 Chorges 



Advonces or 

 Assignments 



Ottier 

 Charges 



Producers Net 3.7 Price 



I Butterfot Differential | 



Quality Differentiol 



I Producer's Net Price 



Figure 1. Schematic Diagram Showing Methods by Which Producers' Prices are Determined. 



The weighted average price or the price level is of additional significance since 

 it is subjected to the manipulation of price-determining agencies. From 1917 

 to 1934 the New England Milk Producers' Association negotiated price contracts 

 with distributors. Since 1934 the Massachusetts Milk Control Board has reg- 

 ulated the level of buying prices which should prevail in secondary markets in 

 Massachusetts. 



The control of both agencies over the price level has been incomplete. Inability 

 to negotiate contracts with all dealers in a market limited somewhat the effective- 

 ness of the Association's influence, the extent of the limitation varying with market 

 conditions. The Milk Control Board overcame this difficulty but has been 

 handicapped by one fully as significant. As yet it regulates only the price paid 

 for milk produced in Massachusetts and used for fluid purposes. The Board 

 does standardize the method of determination and calculates the price to be 

 paid for milk in excess of Class I sales, but the level of this price is determined 

 by market conditions. The Board has but little influence over prices to be paid 

 for milk not produced in Massachusetts and not subject to Federal orders. 



