Middlebury register. (Middlebury, Vt.) 1886-1937, 1920-09-24
THE MILK QUESTION
Financial Paper Shows How Costs
Have Risen in Last Three Years
(From the Boston News Bureau

which the recent increase in the retail
price of milk to Is Ia and IS IL cents
per quart was received This in spite
of the evidences of defiaton and liqui-
dation in practically all commodities
Price of milk seems to be running con-
trary to the general trend and the rea-
sons can be summed up in nutshell;
up to the present, greatly advlned
prices of feed and labor have not been
fully represented in milk price adj
vances to the dealer, nor has the 20
per cent higher freight charge author
lied last month or the higher wages
paid milk-wagon drivers and other
help, amounting in general to 10 per
cent or over. been anticipated in the
price paid by the consumer hitherto.
Primary costs originate with the
producer and here there is little pros
pect of reduction. Though there are
no accurate figures available covering
the average daily wage paid farm
labor before the war or even four
years ago, it is known that labor was
procurable then at $l00 a day and
keep, while now the farm hand re-
Ceives $50 to $40 a month plus his
board. The farmer must meet the
higher wages which attract his labor
to city industry, Farm Implement
prices too. increased - per cent from
1914 to 1918. AS to feed, a composite
record Of COW feed prides in New
England, emitting the item of hay,
shows that since 1915 these feeds have
much more than doubled, in fac,
have increased by 100 per cent up to
January of this year Market prices
OF butte- and cheese also affect milk
prices, though indirectly. What it
costs, on the average to produce a
quart of milk in New England has not
vet been definitely determined, though
it is now being made the subject of
much analysis
Four years ago this month, milk
was being sold i'll Boston for less than
half of the present retail price, to be
exact, nine cents. 1t would be inter
esting to know where the added nine
and one-fourth or nine and one-half
cents went The farmer says that
it did not go into his pocket, while
the distributor produces figures to
show that his profits have not in
creased, in fact that during several
months of the year ne has lost money.
The H. P. Hood & Sons Co. states
that in the four months of 1919 from
July to October inclusive, milk was
delivered to the consumer at a loss
and that its total profit for the year
1919 amounted to II cents for every
hundred quarts delivered, or about one
sixth of a cent per quart Hood fig
ures giving distribution of costs Incl
dent to delivery Of one quart of milk
to the customer, which may be con-
sidered representative Of local dealers
generally, show that total expenses Of
handling and distribution reach at
present nine cents, Of which country
costs are two and one-half cents, city
expenses six cents, and administrative
approximately one-half cent.
One distributor states that there is
no prospect of any decrease ir milk
prices until possibly next spring or
summer, when the effect of a periods
larger supply is felt Another said
! that a decrease could come about if
the higher prices recently established
reduced consumption to an extent
which would serve notice on producers
that they must take less for their
milk Commercial milk can be forced
down in price because it is largely a
surplus product of the farm. The out
put OF milk cannot be regulated and
when there is a surplus beyond the
required supply, its value is what can
be had for it, not what it costs. Up to
the present, however, there has been
no reduction in the per-capita consump-
ton of milk because of higher prices,
due to a greater appreciation of its
food value.
The News Bureau supplements the
above statement with some tables COW
ering figures available for the past
four years, showing by months price
f. o. b. Boston. net received by the
farmer and amount paid by the con-
sumner The weighted average price
per quart paid producer f. o. b. Bos-
ton for all milk gradually increased
from seven cents in August 1917, when
statistics first began to be kept, to
ten and one-half cents the present
month; the net per quart for 3.5 per
cent butterfat milk received by pro-
Queer in the 220-240 mile zone (con-
sidered for this purpose as the aver
age) after deduction of station, can
and transportation expenses and loss
incident to conversion into by-prod-
ucts of surplus or unsold milk, shows
some ups and downs, but was only
one cent and a fraction higher in July
1920 than it was in July 1918, the
figures being 06S9 and .057S. respec-
lively. On the other hand, there has
been a steady increase in the retail
price per quart paid by customers
from 10 cents in January 1917 to is
Ia cents at the present time.
Bes.d es the above commercial milk,
there are high-class diaries producing
a richer milk which is delivered to
families within a limited radius at
more than the above prices or 20 to
30 cents Most commercial milk is
from Holstein cows, averaging less
than three and one-half per cent but
ter fat, while Guernsey and Jersey
| Couc ayarooa obo1,e five and ona n a II