8 N. H. Agr. Experiment Station [Bulletin 275 



lioiinds of milk — and 11 of the 38 farmers sold more than this 

 amount — this spread in price would make a difference of $1,575 

 in income. 



Prices received for milk by the 38 farmers during the year 1932 were 

 affected by six factors as follows: (1) To whom sold; (2) grade of 

 milk; (3) bacteria count; (4) butterfat test; (5) basic rating; (6) 

 seasonal variations in production. 



To Whom Sold 



Milk was bouglit by four different buyers, no two of whom paid 

 exactly the same price. Differences in price of Grade B milk were due 

 largely to variations in the proportion of surplus milk carried by the 

 individual milk company. The greater the percentage of surplus milk 

 which the company handled the lower the average or composite price 

 paid for milk. 



Grade of Milk Sold 



Two of the buyers purchased Grade A milk from a limited number 

 of farmers who were able to meet the requirements as to quality. The 

 quantity was determined by the demand of tlie city consumer i'or that 

 grade of milk; hence no more new producers were taken on than were 

 needed. Thus, even though the Grade B producer has high ciuality 

 milk, he continues to receive Grade B prices until his status is defi- 

 nitely changed. The Grade A producer usually has had special ad- 

 vantages in rating so that less of his milk went as surplus. He also 

 had the advantage of premiums for low bacteria count. 



Bacteria Count 



The basic price for Grade A and Grade B milk is the same, except 

 that in the case of Grade A, premiums are paid for low bacteria count. 

 A premium of 58 cents was paid during July and August, 53 cents 

 during June and September, and 33 cents during the rest of the year 

 or an average of 40.5 cents per hundred pounds for the year for milk 

 with less than 10,000 bacteria count per c.c. For milk with a bacteria 

 count between 10,000 and 20,000 the premium averaged 30.5 cents, 

 and for milk between 20,000 and 50,000, 25.5 cents was paid per 100 

 pounds. The highest average annual premium received by any farmer 

 in the study was 40.4 cents per hundred. There was an opportunity 

 for some producers by lowering the bacteria count of their milk to 

 increase the yearly average price received for milk from 2 to 19 cents 

 per hundred pounds. 



Butterfat Test 



Milk testing above 3.7 per cent brought an additional amount based 

 on the average daily price of 92 score butter in Boston for the period 

 covered by the payment. For example, with butter averaging 22 cents 

 per pouncl during a payment period, milk testing 4.7 per cent fat 

 would be paid an additional price of 22 cents per hundred pounds. 

 Deductions were made at the same rate for milk testing less than 3.7 

 fat. This price basis is probably more favorable to low testing breeds. 



