16 



New Hampshire Experiment Station 



[Bulletin 332 



at the farm by producers. In preparing this chart, producers were ar- 

 ninged according to the price they received. Adjustments had to be made 

 in those cases where producers hauled their own milk. The adjustment 



DOLLARS 



3L50 



3.00 — 



£.50 



ZjOO 



1.50 



1.00 



JSO 



INDIVIDUAL PRODUCERS 



Fig. 4. Prices received at the farm by producers supplying Nashua, 

 New Hampshire, March, 1939^ 



1. For data on which this figure is based see Appendix Table I. 



made in this case was to deduct from the composite price paid at the plant 

 a transportation or hauling charge equal to that which the same dealer 

 was charging other producers living in a similar locality. Where such 

 data were not available, the deduction made was that corresponding to 

 the average hauling charge paid by other producers in the same part of 

 the milkshed. 



The range in prices received by producers selling in Nashua is sur- 

 prising, amounting to 62 cents or 26 per cent of the lowest price received. 

 Nor is this range affected by a few extreme items; nine producers re- 

 ceived $2.33 per cwt., the low figure, and five producers received $2.95 

 per cwt., the high extreme, out of a total of 1 1 3 producers included in the 

 computations. These prices all refer to milk of 3.7 per cent butter-fat 

 acceptable to the city health authorities. Unless other factors, such as 

 distance from market, compensate for such price dispersion, considera- 

 tions of theory would suggest that the market was inherently unstable and 

 a shifting of producers from dealers paying low prices to those paying 



