Evening star., 1924-03-23
SHOWS HALF, OF MILK
PRICE TO PRODUCERS
Agriculture Department Says Pro-
portion Here Is About Same
as Elsewhere.
REST TO DISTRIBUTORS
Survey Puts Retailers Margin Up
to 8 Cents.

approximately SO per cent of the
retail price OF milk in this city is re-
ceived by the producers, which is
about the same proportion received
by producers serving other cities, ac-
cording to a statement of the Depart
ment of Agriculture, disclosing re-
suits of an investigation just COM
pleted. The remaining SO per cent is
divided among the agencies Of dis
tribution, the statement says. The
survey covers the last nine months of
1s2a
Producers receive 7k cents on a
cred on routes by distributors or sold
through single-unit grocery stores
and delicatessens, and 62 cents on a
13cent quart sold through chain
stores, the department says, adding
in each case an additional / cent a
try plant and another three-quarters
Of cent is paid to transport the milk
to the District.
AppOrtionment Ii Explained.
Six cents a quart goes to the dis
tributors city plant in the case of
milk delivered on routes by the dis
the case of milk sold through single
unit grocery stores and delicatessens.
and a little over 3 cents a quart on
milk sold through chain stores. it is
stated. The margin of grocery stores
and delicatessens is put at 2ls cents
thing less than 1 Il cents a quart.
About $4,000 gallons of milk come
into Washington daily. of which
about 90 per cent is handled by nine
distributors. In all there are forty
distributors in the District. The mill
is produced on approximately 100
dairy farms, most of which are within
a sixty-mile zone of the District and
are largely centered in Fairfax. Lou
doun, and Prince William counties in
Virginia, and in Frederick county, Mary
land. About 80 per cent Of the supply
comes through a producers organiza-
ton having approximately 1000 men,
berS.
Bonus for Cleanliness.
The bulk Of the milk sold is SO
per cent butterfat content, the sur
vey shows. Since November, 1928
all distributors have paid producers
a bonus averaging 4 cent q quart
for varying standards of sanitation
and cleanliness. and sn additional
who receive milk only from certain
dairies that comply with Special
sanitary requirements. The lower
price that producers receive tor milk
sold through cash-and-carry stores Is
due partly to the fact that for such
milk it is unnecessary to meet the
special requirements for high barn
and cattle scores and partly to a
slightly lower butteffat content, it
is explained.
There is a differential Of cents
per gallon between country plant
prices and f. O. b. Washington pirces,
3 cents of which goes for transpor-
tation and cents for operating the
distributors country plant, where
loaded in iced cars for shipment.
Were it not for the country plants
the area supplying milk to Wash
ington would tend to contract, in
asmuch as the express rate on less
than carload shipments from con-
be prohibitive, the department says.
Says Margin Is Reduced.
The distributors margin is con-
siderably reduced where he sells in
wholesale lots to retail stores, made
possible by smaller delivery expense,
savings in bottle loss and less risk
from delinquent or bad accounts.
The necessary plants and equipment
for handling the milk. pasteurizing,
bottling and refrigerating represent
large investment. the department
points out Careful organization is
required. with somewhat larger ex-
penditure for labor and equipment
than Is necessary in industries whe re
the consumer demand Is less exacting.
Some retail stores, on account OF
competition. sell milk at cost, the
survey shows
other stores sell on margins of
from to 8 cents. Majority Of the
single-unit type stores receive either
9 or cents per quart for their
service, whereas chain stores work
on a small margin, made possible by
lower operating costs due to absence
of delivery and credit service, and
the advantage of large scale purchas-
ing and efficient management.
The Department points out that the
various estimates of margins repre-
sent average conditions for the city
as a whole. Most Of the data was
to. the Department by the
principal distributors, the Maryland
Virginia Milk Producers Association
and the District Health Department