The Mechanics of Supply Demand Adjusters for Midwestern Milk Markets

Cover The Mechanics of Supply Demand Adjusters for Midwestern Milk Markets
The Mechanics of Supply Demand Adjusters for Midwestern Milk Markets
William Sheldon
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For example, Baumer and Kepner have demonstrated that, with an adjuster using a 2-month base, the relationship obtained depends in part on the comparative numbers of early-in-the-week days and late- in-the-week days that happen to fall in the 2-month period. They sug- gest an adjustment that may be used to correct this effect, which is attributable to the wide day-of-the-week fluctuations in sales of pack- 1 Products in which milk usage is considered in computing the receipts-Class I sales rati...o, although usually termed "Class I sales" in this report, varied appre- ciably among markets. For example, in Detroit they excluded bottled cream. At the other extreme, in Chicago they included ice cream and, quite likely, proportionally larger sales of bulk milk and cream to unregulated plants than in other markets. These differences helped to account for the differences in amount of variation in the ratio of Class I sales to producer receipts. For example, in Chicago, with ice cream and bulk sales of milk and cream to unregulated plants excluded from the ratio, the average change from month to month was reduced from 1.

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