PRODUCT-COSTS TO MILK DEALERS 21 



Summary 



The milk industry can perform its most effective service under conditions of 

 relative market stability. Conditions in various Massachusetts secondary areas 

 are not conducive to market orderliness. Among these conditions are uneven 

 distribution of fluid outlets among dealers, rigidities in producer-distributor 

 relationships, and the absence of reasonable relationships between the price 

 payable for milk disposed of as fluid and as surplus. 



So long as the advantages accruing to distributors as a result of superior personal 

 contact are fully returned to their producers and so long as they are maintained 

 by fair methods, these advantages should not be arbitrarily diminished. 



The disadvantages suffered by all producers but mostly by producers with 

 inferior sales' outlets should be minimized by the development and application of 

 a logical pricing technique based on "normal" class price relationships. 



TABLE I. — PERCENTAGE OF PURCHASES DISPOSED OF IN CLASS I SALES BY 

 DEALERS* WHOSE PRODUCT-COSTS WERE ABOVE THE MARKET AVERAGE 



Selected Months, 1935 



*Flat Plan dealers excluded. 



