June, 1941] Local Structure of A4ilk Prices 29 



Still other factors tending to prevent easy transfer of producers from 

 one market to another are those associated with personal likes and dis- 

 likes. Loyalties built up between producer and dealer or producer and 

 hauler may require large price differences to be broken down. Likewise, 

 strong dislikes may prevent producers from supplying a particular hand- 

 ler. In this connection might be included the suspicion on the part of pro- 

 ducers that certain handlers misuse the rating system or report false but- 

 terfat percentages or, in one ^^■ay or another, continue to defraud their 

 producers of a part of the milk price. While the most of such suspicions 

 may be entirely unfounded, this does not prevent their being a potent in- 

 fluence in determining to what handler milk is sold. 



Health regulations are often an important factor in preventing easy 

 movement of producers from one market to another. Equipment require- 

 ments are apt to differ and expense be involved in qualifying to ship to a 

 new market. 



The importance in the Haverhill area of these factors affecting pro- 

 ducers' market responses varied. Base-ratings, limitations by handlers on 

 taking on new producers, contracts to deliver to a particular plant and 

 other such deterrents to easy movement between markets have been im- 

 portant influnces in Haverhill. Another factor which undoubtedly has had 

 an effect has been the availability of a market for Grade A milk at North 

 Haverhill. Where producers could comply with requirements, the addi- 

 tional potential return from shipping to that station greatly afl^ected pro- 

 ducers' selection of a market. 



As mentioned earlier, many of the Haverhill producers shipping to 

 the Boston market possessed unusually satisfactory base-ratings, which 

 they were reluctant to lose. This factor, while it endured only to the end 

 of 1936, was undoubtedly a strong influence against leaving the Boston 

 market during the first two thirds of the period studied. On the other 

 hand, the opportunity to obtain immediately such base-ratings was not 

 open to producers leaving the Manchester market; the securing of a sat- 

 isfactory base-rating only followed continuous delivery for some time. 



Difference in the method of price quotation, sometimes an obstacle 

 to comparison of prices offered a producer by different market outlets, 

 vv as not an important factor in Haverhill. While during the latter part of 

 the period studied, the Manchester market purchased on a base and sur- 

 plus basis and the Boston market on a composite basis, prices quoted were 

 on a per hundredweight scale and butterfat differentials Mere the same or 

 similar. 



Such factors as personal hkes and dislikes have been important in 

 Haverhill, as they are in almost all markets. 



Two factors M'hich are sometimes important did not have much 

 prominence in Haverhill. These are (1) a difference in markets with re- 

 gard to the handler accepting all of a producer's milk even in the flush 

 season, and (2) a difference in the producer's estimate of handler's finan- 

 cial strength. Neither of these two factors ^^'as mentioned by producers 

 in Haverhill as influencing their choice of market. 



