Table 10. Possible Savings from 6-day Operation of Plant by Using Truck Tank as a 



Holding Tank 



Expenses Annually Probable Savings 



Conclusions 



Increased Farm Costs 



The adoption of tank assembly in New Hampshire poses certain prob- 

 lems. A 100 percent conversion to tank assembly will provide the greatest 

 economies to dealers. The conversion is dependent on the willingness of pro- 

 ducers to buy farm tanks. This can only be expected if capital is available 

 and if the quantity of milk sold justifies the investment. The cost to producers 

 and truckers will be increased from investment and operating charges, so 

 that some additional payments for milk and handling appear a necessary 

 incentive to adoption. 



Problem of Selecting Producers 



By a process of selection, some dealers may buy milk only from pro- 

 ducers large enough to utilize the farm tank unit. This can be done gradually 

 but will drive small producers to other dealers willing to pick up their milk 

 in cans, force them to invest in a tank, or drive them out of business. Other 

 dealers deriving a larger proportion of their milk from small producers 

 cannot expect 100 percent conversion without some drastic changes in the 

 farming practices of their producers. Such dealers will be delayed in receiv- 

 ing benefits from any economies of assembly provided by the tank method 

 unless they are prepared to operate at less than 100 percent conversion. This 

 decision will affect their long-run competitive position with respect to other 

 dealers and their producers. 



Increased Competition 



Larger producers may demand tank-truck service by their present dealer 

 or from a dealer with tank-assembly facilities. Competition between dealers 

 for milk from larger producers will thus increase and competition for milk 

 from smaller producers will decrease. The effect will be shown in the prem- 

 iums paid to larger producers and the lower payments to smaller producers. 

 Such competition will result eventually in lower assembly costs, but only after 

 many serious adjustments have been made in the size and type of producers 

 supplying market milk. 



Problem of Small Producers 



New Hampshire has a large numbex of small producers who are dis- 

 tributed fairly evenly between dealers. This even distribution is also true 

 of the larger producers. Similarly there are a large number of small dealers 

 who handle a small proportion of the milk. The volume of milk assembled 



17 



