Evening star., 1948-02-14
Letters to The Star
Milk Industry~Economics

Milk Industry y>EconOm1cs
TO the Editor Of The Star:
We read with interest in The Sunday Star
of February /, the report OF the study OF milk
delivery costs by Russell Childress of Virginia
Polytechnic Institute. It is pleasure to note
that he found such high percentage of milk
customers willing to continue to receive milk
deliveries on an every-other-day basis. This
economy, that was developed through war
necessity, Is the biggest step in economic milk
deliveries that the milk industry Of the United
States ever has developed. We note that Mr..
Childress reported the customers conscious
ness of so-called duplication of delivery serv-
ice, and an assumption of one to two cents
a quart extra cost for this duplication. This
sort of assumption crops up so frequently that
the facts are called for.
Milk dealers, whose responsibility 1t is to
pasteurize and deliver the Nations milk sup
DIV, are we'll aware of the costs of milk delivery
and are seeking every means to reduce those
costs They know that the dealer who can sell
milk at the lowest price will get the most
business. They also know that too high cost
for milk will reduce their sales. The milk
dealer depends upon volume to make proht
He depends upon full loads on each delivery
vehicle The dealer in any market, whose
vehicles are loaded to capacity, usually will be
safely in the black. The dealer, whose delivery
trucks are not loaded to capacity, frequently
will be on the verge of bankruptcy. The de-
livery man can handle only truck-load IN
a day. His duties include a number OF items
which are not apparent to the consumer. He
not only sells and delivers his milk and milk
products, but he also collects for the products
He has to drive from his plant to the begin
ming of his route. He loads and unloads, and
in the course of his route, rearranges MS
truck He has to keep his records straight
both during his route operation and at tne
end of the day. An analysis OF his time SHOWS
that only small percentage OF his time Is
spent driving from one customers nome 10
another, and as great or greater amount OF
time is spent walking from his vehicle to the
doorstep or refrigerator where the mk Is
left. It is for this reason that every-other-
day delivery has been so effective In saving
money for the customer. The estimates range
from one to two and one-half cents quart.
Eyery-other-day delivery has resulted in the
drivers truck being loaded to capacity, and he
carries twice as much product on his trip from
wagon to doorstep
The above statements are substantiated by
an analysis of man and motive power mace
for one of the larger cities by an engineering
firm several years ago. At that tlme' II was
estimated that the Inauguration OF every
other-day delivery would permit reduction
of about 80 per cent in retail routes OF CITY,
They. however, also studied the effect OF an
exclusive territory arrangement by which only
one route would be operated on any street.
The reduction in routes would amount 70
only five per cent
Competition a Constructive Factor.
There is another very important factor that
must be considered before competition Is
eliminated in the milk industry. This Is that
competition has been the one feature OF the
American way of life that has encouraged
progress. When a group of companies are
competing for the consumers dollar, they all
endeavor to give the best service, to provlde
the product at the lowest price, and to ado
new features to their product or service as
they become available. The square bottle
was commended in Mr.. Childress' survey. 1t
was the alertness of milk dealers for improve
ment which was responsible for the square
bottle in our industry.
If a dealer were assured of his customers
through q coming system, he would not have
the urge to improve his package With REFER
ence to the hood cap, which MIR. Chhdress
says were suggested by the consumers ne
interviewed, such caps are required by neaitn
departments In some cities, but competition
forced their appearance in these and other
cities before they were required by health
department The same may be said OF the
milk bottle itself. The bottle was th2 inven-