18 N. H. Agr. Experiment Station [Bulletin 272 



The variation in price received for milk has been shown in Table 2. A 

 high or low average for the yearly sales can affect the labor returns. The 

 same is true of high or low delivery costs. If a farmer is unfortunate in 

 having a combination of low price and high delivery cost due principally to 

 small volume, he is certain not to receive much for his time in retailing 

 milk. In one instance, a producer lost one-tenth of a cent on every quart 

 retailed, considering the price he could have received wholesale. His yearly 

 sales were $18.25 less than if he had sold wholesale and he received no 

 return for his labor in retailing. 



It would not be correct to state that all of the men selling less than 100 

 quarts daily could improve their labor returns if they co-operated with their 

 neighbor and combined supplies. Four of them having the smallest volume 

 received over $1.00 per hour for the time spent retailing milk. Three, how- 

 ever, walked and carried the milk to the customers who were a few doors 

 away, and the fourth was even more fortunate as his customers called for 

 the milk. It is the men who have a small volume and live a considerable dis- 

 tance from Laconia who can afiford to combine milk output in order to 

 reduce time and delivery expense. 



In the group selling less than 50 quarts daily, two were over six miles 

 from Laconia and more than half were over two miles. Of those distribut- 

 ing from 50 to 100 quarts daily, about three- fourths were beyond the two- 

 mile zone, three were between six and eight miles and two between eight 

 and ten miles. Under these conditions, the distribution costs can be reduced 

 as shown by previous analysis. 



Conclusions: 



The previous discussion has pointed to the need for fewer distributors 

 who sell larger daily volumes, if savings in cost of retailing are to be made. 

 Since the returns from retailing milk are an important source of the farm 

 income, any plan for reducing costs could not be successfully applied if it 

 materially lowered these returns. 



At the present time there is some evidence of producers combining sup- 

 plies. Some farmers have purchased bottled milk outright from their neigh- 

 bors and delivered it entirely on their own responsibility. The extra amount 

 increased their daily volume and enabled them to obtain a greater return 

 for their time. It is possible for more men to take over the supply of the 

 small producers, so that mutual savings will result. The greatest saving 

 would come to the small producers who travel a long distance. 



Ideal conditions exist for combining the supplies of two or more produc- 

 ers in some neighborhoods. Quality of the milk is about the same from each 

 farm, methods of sale and price received are nearly identical, and the 

 dispositions of these neighbors are of the type which builds successful co- 

 operatives. Other situations are not ideal and to attempt a neighborhood 

 co-operative for retailing milk would be impractical. This does not imply 

 that unfavorable conditions cannot be changed. 



