Is State Control of Consumer Milk Prices in the Public Interest

Cover Is State Control of Consumer Milk Prices in the Public Interest
Is State Control of Consumer Milk Prices in the Public Interest
Roland Willey Bartlett
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07 to 9. 05 cents and averaged 7. 56 cents a quart. The 1962 unit costs (adjusted) of 58 dealers below the median ranged from 4. 2 to 9. 2 cents and averaged 7. 52 cents (Fig. 1). It is reasonable to believe that efficient dealers in each of the markets could operate at a profit.
2. Twelve of the 20 low-margin markets had DGM's from 1949 to 1962 wh'ch were less than 9. 0 cents a quart and averaged 7. 8 cents a quart. It is unreasonable to believe that the majority of milk distrib- utors in any
...market could operate at a loss for a 14-year period.
3. Seventeen of the 20 markets had strong labor unions which nego- tiated wage rates with distributors. The wage rate is not a limiting factor for low-cost milk distribution. Even with high wage rates, it is 1 F. C. Webster, Alec Bradfield, J. R. Bowring, K. A. Taylor, and H. C. Moore, Economics of Size in Fluid Milk Processing Plants, Vt. Agr. Exp. Sta. Bui. 636, pp. 4-8, June 1963.
10 BULLETIN NO. 705 [January, Table 4. Distributors' Gross Margins for 20 Low-Margin Markets, 1949-1962 1 and 1962 (cents per quart) Market 1949-1962 1962 Market 1949-1962 1962 1 9.


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