Milk Markets and Milk Marketing
It should be apparent from much that has been said in earlier chapters that the expansion of milk production in New England clearly indicated as possible in the last two chapters is strongly conditioned by the extent of the outlet for fluid milk in New England, since the amount of milk that the people of New England will consume as whole milk determines the amount that can be sold at Class I prices, and hence at the blended prices (average of Class I and of Class II or cream prices). It should also be at once apparent that the efficiency of the organization for getting the milk from the producer to the consumer is also important, since it determines what part of the price paid by the consumer is received by the producer of the milk. The assignment in this chapter is to present the major facts and analysis on milk marketing organization in New England and on other closely related subjects such as consumption and prices.
The first aspect of this assignment is relationships to competing markets and sources of supply. New England and its markets are so placed with reference to New York City that any milk produced along its western border that does not bring a price that will keep up its production has the alternative of going to the New York City market if that market is able to pay better for it. Contrariwise, if New England cities need more milk than New England farms will supply, its milk dealers are in position, unless prevented from doing so by state or other monopolistic controls, to reach over into New York and absorb the milk of border plants or receiving stations. The New York market in turn has to compete with Pennsylvania markets,