Is State Control of Consumer Milk Prices in the Public Interest

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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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