THE WORCESTER MILK MARKET 



25 



In 1935 the average differential allowed in Worcester for milk above or below 

 3.7 percent butterfat content was 4.1 cents for each one-tenth percent. According 

 to G. F. Dowi* in a study of producer distribution costs in three areas in Maine, 

 "the cost of producing milk increased about one-fourth cent per quart for each 

 additional increase of 0.3 in the percentages of the butterfat test." This amount 

 equals 3.8 cents per one-tenth percent butterfat compared with the average 

 differential of 4.1 cents actually paid in Worcester in 1935. Although the method 

 of computing costs of producing higher testing milk does not account for seasonal 

 variation, and although producer-distributor costs in Maine are only roughly 

 comparable to wholesale-producer costs in Worcester County, Massachusetts, 

 the comparison shows that existent butterfat differentials in the Worcester area 

 are somewhat commensurate with actual production cost differentials. 



SCALE OF ULCS 



Figure 13. Location of Producers according to Prices Received for Their Milk, 1935. 



Net farm prices for 431 producers (71 percent of all full-year producers) were 

 available. Table 8 and Figure 13 show how the group average price decreased 

 from $2.86 in zone 1 to $2.69 in zone 4, although in zone 5 the price was $2.72. 

 This was a decrease of 17 cents per hundredweight in twenty miles, but this did 

 not occur at regular intervals, for over half of the total decrease (11 cents) occurred 

 from zone 2 to zone 3. This same table shows that flat-plan producers received 

 26 cents per hundredweight more than use-plan, and rating-plan producers 8 

 cents more than use-plan. Close examination reveals the fact that prices by 

 price plan affect average prices by zones, and vice versa. 



l^Dow, G. F. An Economic Study of Milk Production Costs in Herds of Producer-Distributors 

 in Maine, Maine Agr. Exp. Sta., Bui. 385, .A.ug. 1936. p. 48. 



