Excerpts from the report Preface: This report is one of a group dealing with Class III milk pricing in the New York-New Jersey milkshed. Particular emphasis is given to factors affecting the market for Class III products and to the decisions which handlers make about the form in which they will dispose of Class III milk. This report deals with the extent to which changes in output of the major products of Class III milk were associated with changes in margins for these products in the 5 or 10 years ending with 1957. It also covers the results of interviews with officials of many of the firms that handled Class III milk. During these interviews, the officials were asked about the considerations that affected their decisions on how they use this milk. The questions concerned such topics as each firm's preferences among the products it was equipped to produce and limitations on the extent to which the firm could adjust its output to take advantage of shifts in profitability among products.