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Abstract

This study was designed to provide an economic analysis of the effect of Federal milk regulatory programs on the marketing of fluid milk and its products in the Minneapolis-St. Paul, Minn., marketing area. Since 1933, the Federal Government, through the medium of milk marketing agreements, licenses, and orders, has played an increasingly important role in the pricing of milk that is marketed in the major fluid milk consumption centers. As of December 1950, 39 markets were regulated by Federal milk orders issued by the Secretary of Agriculture under authority delegated to him by Congress and upheld by the U. S. Supreme Court. Moreover, the regulatory program is an expanding one, requests being continually received from additional markets for milk orders to replace, modify, or strengthen existing price-determining methods. The transition toward governmental regulation of fluid milk markets has progressed far enough to provide a basis for appraising the effects of these regulatory programs on the marketing structure for fluid milk and its products.

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