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In making payments to producers, fluid milk dealers pay for milk on a utilization basis. That used as fluid whole milk, low fat, or skim milk is paid for at a Class I price and all other milk, regardless of how used, is paid for at a lower Class II price. The milk classified as Class II is often distinguished as that processed and that not processed at the fluid milk receiving plant. The latter is shipped to a surplus milk disposal facility and in Maine, the dealer pays producers a lower, Class lib price for it. This milk ultimately is processed into cream for ice cream, cheeses, skim milk powder, butter and other storage products. The objective of this study was to determine the minimum reserve requirements of fluid milk processing plants and to analyze some of the factors influencing the level of reserves.
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Maine Agricultural and Forest Experiment Station
Maine, Massachusetts, milk, processing
Metzger, Homer B.. 1978. B752: Reserve Milk Supplies of Milk Processors in Maine and Massachusetts. Maine Agricultural and Forest Experiment Station Bulletins .