THE WORCESTER MILK MARKET 



Table 1. — Variations in size of business of Worcester milk dealers, 1935 



(Pounds) 



Dealers 



Average 



Daily 



Purchases Number Percent Purchases per Amount Percent 



of Total Dealer of Total 



Average 

 Daily 



Purchases 



Less than 1,000 22 27.8 614 4,930,692 7.8 



1,000-1,999 10 12.7 1,332 4,862,670 7.7 



2,000-2,999 6 7.6 2,415 5,287,777 8.4 



3,000-3,999 6 7.6 3,458 7,571,942 12.0 



4,000-4,999 3 3.8 4,363 4,777,461 7.6 



5,000-9,999 5 6.3 6,492 11,847,966 18.8 



Over 10,000 4 5.1 14,288 20,860,873 33.1 



Total 56 70.9 



Producer- Dealers and 



Producer- Distributors 23 29.1 



Grand Totals 79 100.0 2,185 63,010,471 100 



2,942 60,139,381 



342 2,871,090 



95.4 

 4.6 



Since 1931 the use plan of payment has been modified by the base rating' 

 system in an effort to even out seasonal variation in production and provide an 

 automatic checking influence on pioduction during the season of excessive surplus. 

 Since its introduction at that time various modifications have ensued. In 1934 

 when the Massachusetts Milk Control Board became active, it found the base 

 rating plan, the use plan and the straight volume or flat plan all being used. Since 

 September 1934, the Milk Control Board has required all milk-distributing agen- 

 cies in the Commonwealth to pay producers according to one or another of the 

 three plans, for which details of procedure were established. 



In 1935 there were 23 dealers in Worcester buying on the flat plan, 22 buying 

 on the use plan, and 11 employing the base rating plan. Table 2 shows division 

 of the entire market among dealers according to these price plans. Only 12.8 

 percent of the milk in the market was purchased by the 23 flat-plan dealers 

 compared to 37.8 percent by the 22 use-plan dealers, and 44.8 percent by the 11 

 rating-plan dealers. The remainder was purchased by producer-dealers and 

 producer-distributors. Table 1 also shows that this last type of dcdltrs was 

 relatively unimportant in the market. 



Occasionally dealers performed credit services. In some instances, dealers 

 made regular deduction from producers' milk checks on the accounts of their 

 producers' creditors. In other instances, dealers advanced money to producers 

 on the account of their next milk checks. Dealers frequently have rendered 

 valuable assistance in this manner to producers with poor security. 



On the other hand, there were cases of producers performing a banking service 

 for dealers, although the Milk Control Board has set up regulations concerning 

 promptness of dealer payments to producers. In times of stress some dealers 

 have allowed their payments to producers to be in arrears. This, in effect, was 

 a loan. to the dealer. To protect producers from loss on such activities by dealers, 



'ibid, pp. 51-57. .\Iso Jensen, Einar, The Boston Milk License, Aug. 1934. 



