June, 1933J 



Retailing Milk in Laconia 



17 



On this basis the average net retail price for the 54 producer-distributors 

 was $.0828 per quart. The average net wholesale price was $.0407 per 

 quart, leaving an average labor return from retailing of $.0421 per quart. 

 Thus the return for labor alone is more than the wholesale price. See Table 

 10. The yearly return for labor in retailing amounted to $68,588. 



It was pointed out in previous discussions of Table 1 that a very small 

 part of the milk was sold as surplus. This would justify using the Class 

 I price. If a 20 per cent surplus were figured, however, this would lower 

 the net wholesale price at the farm and tend to make the margin of returns 

 for labor in retailing even greater than appears in the preceding paragraph. 



If all of the milk had to be sold on a wholesale basis, some of the farms 

 would not be operated. The returns from labor in retailing enables many 

 of these producer-distributors to operate a small place. Furthermore, they 

 have a few alternatives to choose from in other types of farming. 



Those selling less than 100 quarts daily received the smallest return per 

 hour for their labor in retailing. The average return of the group selling 

 less than 50 quarts daily was $.491 per hour; for those distributing between 

 50 and 100 quarts, ^.738 per hour. Those having greater volumes were able 

 on the other hand to use their time to better advantage, receiving from 

 $1.13 to $2.00 per hour. The average return of all 54 producer-distributors 

 was $.938 per hour. See Table 8 and Figure 3. If two or more of the men 

 in the groups selling a small volume daily would combine their output, they 

 should receive a greater labor return. 



ZO 40 00 80 too 120 MO ISO 180 200 220 240 260 280 JOO 



Quarts Sold Daily 



Figure 3. X'arying labor returns from retailing milk in relation to 

 the number of quarts sold daily. 



