MILK SURVEY OF THE CITY OF ROCHESTER 19 



"Although any action taken by the Food Controller must necessarily be limited 

 to the period of the War Measures Act, the Committee's recommendations have in 

 view more than temporary relief from the excessive spread between the prices paid 

 to the producer and the prices charged to the consumer. The report is being given 

 widespread circulation in the hope that thereby a permanent solution may be found 

 of the problem of reducing the high cost of distributing milk." 



The subjects of enquiry included: The cost of milk production, 

 farm labor, cow feed, and other expenses ; the use qf milk in by-products ; 

 the food value of milk; the spread in various cities; bottle losses, and 

 possible savings. 



The report also contains a statement of the experience of the City 

 of Regina, Sask., in consolidating the milk business. 



The conclusions and recommendations of this report are, in brief, as 

 follows : 



"(1) That the price of milk paid to producers generally has not been found to 

 be exorbitant, taking into consideration all existing circumstances ; 



(2) It has been proved successfully that milk and all its products, including 

 skim milk, are the cheapest forms of animal foods on the market today, and that 

 the price of milk has not increased to the same extent as have the prices of other 

 food. 



(3) The producer received for his milk delivered at the city dairy an average 

 price of from 6c to 8c per quart, while the retail consumer is paying from lOc to 

 13c per quart This difference, commonly called "the distributers' spread," varies, 

 according to the evidence submitted, from 2.75c to 6.50c per quart. 



(4.) That this excessive "spread" or difference between the producers' price 

 and the consumers' price is caused chiefly by the excessive number of distributers, 

 and that it varies in about the same ratio as the number of distributers. 



(5) In Ottawa, where one dairy handles about 75% of the milk, the spread 

 is only 3.25c per quart, while in Toronto where there are about 90 distributers it 

 is 5.25c." 



The report estimates possible savings as follows : 



Excess dairy costs .25c per quart 



delivery costs .75 " 



" bottle loss costs.. .125 " " 



Total 1.125c ' 



and on this basis an annual saving of over $1,500,000.00 could be effected 

 in city distribution in Canada. 



The second chapter of the report contains recommendations for the 

 reorganization and unification of the business of milk distribution. The 

 principal recommendations are as follows : 



"(1) We recommend that the distributers' "spread", or the difference between 

 the price paid for milk delivered at the city dairy and the price charged to the 

 consumer, be fixed on a basis of reasonable costs of distribution as shown by the 

 evidence submitted." 



