Dairy Industry: Information on Prices for Fluid Milk and the Factors That
Influence Them (Letter Report, 10/08/98, GAO/RCED-99-4).

Pursuant to a congressional request, GAO reviewed issues concerning the
pricing and marketing of fluid milk, focusing on: (1) the factors that
influence the price of fluid milk as it moves from the farm to the
consumer; (2) the portion of the average retail price of a gallon of
fluid milk that is received by farmers, cooperatives, wholesalers, and
retailers in selected markets across the country; (3) changes in farm
and retail prices and their effect on the farm-to-retail price spread;
(4) the way changes in prices at any given level in the milk marketing
chain are reflected in changes in prices at the other levels; and (5)
different retail pricing relationships that exist in selected markets
among the four kinds of milk.

GAO noted that: (1) at all levels in the fluid milk marketing chain,
prices are determined by the interaction of numerous supply and demand
factors; (2) the supply available at any given level is influenced by:
(a) the costs incurred by the entities involved in the production,
processing, and marketing of fluid milk; (b) the government policies
that establish minimum prices for unprocessed milk used to produce fluid
milk; (c) competitive conditions in the marketplace; (d) the market
power acquired by the entities involved; and (e) the price of milk; (3)
similarly, the amount demanded at any given level is influenced by the
size, age, and income levels of the population in the marketing area,
and the prices of fluid milk and substitute goods; (4) furthermore, the
prices that retailers receive for fluid milk are influenced not only by
their operating costs and return on investment but also by other
factors, such as the pricing strategies used by competitors; (5) from
January 1996 through February 1998, for the 31 fluid milk markets that
GAO reviewed, on average, farmers received 42 percent of the retail
price for a gallon of 2-percent milk, cooperatives received 10 percent,
wholesalers received 31 percent, and retailers received 17 percent; (6)
however, the portion received at any one level in the marketing chain
varied substantially among markets; (7) from January 1996 through
February 1998, retail prices for a gallon of 2-percent milk remained
constant or increased in 27 markets and decreased in 4 market; (8) in
contrast, farm prices decreased in 27 markets and remained constant in 4
markets; (9) as a result of these price changes, the farm-to-retail
price spread increased in 27 of the 31 markets over the 26-month period
GAO reviewed; (10) changes in prices at any given level in the milk
marketing chain were most often reflected in changes in prices at the
next level, as might be expected; (11) similarly, changes in wholesale
prices generally correlated with changes in retail prices; (12) in
contrast, changes in prices received by farmers less frequently
correlated with changes in retail prices than they did with changes in
cooperative or wholesale prices; and (13) retail pricing relationships
among the four kinds of milk varied significantly in the markets GAO
analyzed.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-99-4
     TITLE:  Dairy Industry: Information on Prices for Fluid Milk and 
             the Factors That Influence Them
      DATE:  10/08/98
   SUBJECT:  Prices and pricing
             Dairy products
             Dairy industry
             Agricultural production
             Statistical data
             Commodity marketing

             
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Cover
================================================================ COVER


Report to Congressional Requesters

October 1998

DAIRY INDUSTRY - INFORMATION ON
PRICES FOR FLUID MILK AND THE
FACTORS THAT INFLUENCE THEM

GAO/RCED-99-4

Factors Influencing Fluid Milk Prices

(150123)


Abbreviations
=============================================================== ABBREV

  AMS - Agricultural Marketing Service
  DOD - Department of Defense
  ERS - Economic Research Service
  GAO - General Accounting Office
  NASS - National Agricultural Statistics Service
  USDA - U.S.  Department of Agriculture

Letter
=============================================================== LETTER


B-280638

October 8, 1998

The Honorable James M.  Jeffords
The Honorable Patrick J.  Leahy
United States Senate

Retail sales of fluid drinking milk (fluid milk) in the United States
total about $19 billion annually.  A number of entities are involved
in the process of moving milk from the dairy farm to the consumer,
and these entities perform distinct functions in the production,
processing, and marketing of fluid milk.  Dairy farmers produce
unprocessed milk that they (1) market through dairy cooperatives, (2)
sell to bottlers who process it into fluid milk for sale to retail
outlets, or (3) process into fluid milk for direct sale to consumers. 
Most milk produced by dairy farmers in the United States is marketed
through dairy cooperatives.  Dairy cooperatives can either sell, or
arrange the sale of, unprocessed milk purchased from farmers to
wholesalers, or they can process it into fluid milk and distribute
this fluid milk to retail outlets themselves.  Wholesalers (bottlers
or retail food chains with bottling plants) purchase unprocessed milk
from dairy farmers or cooperatives and process and package it into
fluid milk, which they then distribute to retail outlets.  Retail
outlets purchase fluid milk for direct sale to consumers.  A portion
of the retail price of a gallon of fluid milk is received by farmers,
cooperatives, wholesalers, and retailers for the functions they
perform during the production, processing, and marketing of fluid
milk. 

You requested that we examine certain issues concerning the pricing
and marketing of fluid milk.  This report provides information on (1)
the factors that influence the price of fluid milk as it moves from
the farm to the consumer; (2) the portion of the average retail price
of a gallon of fluid milk that is received by farmers, cooperatives,
wholesalers, and retailers in selected markets across the country;
(3) changes in farm and retail prices and their effect on the
farm-to-retail price spread--which is the difference between the
retail and the farm price; (4) the way changes in prices at any given
level in the milk marketing chain are reflected in changes in prices
at the other levels; and (5) different retail pricing relationships
that exist in selected markets among the four kinds of milk--whole,
reduced-fat (2-percent), low-fat (1-percent), and fat-free (skim). 
For this report, we analyzed fluid milk prices for 31 selected
markets nationwide and generally limited our analysis to 2-percent
milk sold in gallon containers, which currently represents the
largest volume of reduced-fat milk sold nationwide.  We issued a
report on March 16, 1998, entitled Dairy Industry:  Information on
the Marketing Channels and Prices for Fluid Milk (GAO/RCED-98-70)
that addresses other issues--concerning marketing channels and
pricing for fluid milk--about which you had concerns.\1

In summary, we found the following: 

  -- At all levels in the fluid milk marketing chain, prices are
     determined by the interaction of numerous supply and demand
     factors.  The supply available at any given level is influenced
     by the costs incurred by the entities involved in the
     production, processing, and marketing of fluid milk; the
     government policies that establish minimum prices for
     unprocessed milk used to produce fluid milk; competitive
     conditions in the marketplace; the market power acquired by the
     entities involved; and the price of milk.  Similarly, the amount
     demanded at any given level is influenced by the size, age, and
     income levels of the population in the marketing area; and the
     prices of fluid milk and substitute goods.  Furthermore, the
     prices that retailers receive for fluid milk are influenced not
     only by their operating costs and their needed return on
     investment but also by other factors, such as the pricing
     strategies that they and their competitors use. 

  -- From January 1996 through February 1998, for the 31 fluid milk
     markets that we reviewed, on average, farmers received 42
     percent of the retail price for a gallon of 2-percent milk,
     cooperatives received 10 percent,\2 wholesalers received 31
     percent, and retailers received 17 percent.  However, the
     portion received at any one level in the marketing chain varied
     substantially among markets.  For example, the portion of the
     average retail price that farmers received ranged from about 31
     to 54 percent, and the portion that retailers received varied
     between about 4 and 31 percent in the markets we reviewed, with
     one exception. 

  -- From January 1996 through February 1998, retail prices for a
     gallon of 2-percent milk remained constant or increased in 27
     markets and decreased in 4 markets.  In contrast, farm prices
     decreased in 27 markets and remained constant in 4 markets.  As
     a result of these price changes, the farm-to-retail price spread
     increased in 27 of the 31 markets over the 26-month period we
     reviewed. 

  -- Changes in prices at any given level in the milk marketing chain
     were most often reflected in changes in prices at the next
     level, as might be expected.  For example, in most of the
     markets we analyzed, there was a strong correlation between
     changes in farm prices and changes in cooperative prices. 
     Similarly, changes in wholesale prices generally correlated with
     changes in retail prices.  In contrast, changes in prices
     received by farmers less frequently correlated with changes in
     retail prices than they did with changes in cooperative or
     wholesale prices. 

  -- Retail pricing relationships among the four kinds of milk varied
     significantly in the markets we analyzed.  For example, from
     January 1996 through February 1998, in some markets, 1-percent
     milk was most often the lowest-priced milk sold at the retail
     level; in other markets, fat-free milk was the lowest-priced
     milk; and in still other markets, the lowest-priced milk sold in
     retail stores shifted among whole, 2-percent, and fat-free milk. 

This report is divided into six appendixes.  Appendix I describes in
detail our objectives, scope, and methodology.  Appendix II describes
the various factors that influence the price of fluid milk as it
moves from the farm to the consumer.  Appendix III provides
information on the average price of milk at the farm, cooperative,
wholesale, and retail levels; changes in farm and retail prices and
their effect on the farm-to-retail price spread; and the relationship
between changes in the price of milk at a given level to changes in
prices at another level of the milk marketing chain for a gallon of
2-percent milk in selected markets for January 1996 through February
1998.  Appendix IV provides information on retail pricing
relationships for whole, 2-percent, 1-percent, and fat-free milk in
selected markets for the period January 1996 through February 1998. 
Appendix V provides detailed information on the average monthly
farm-, cooperative-, wholesale-, and retail-level prices for the four
kinds of milk (whole, 2-percent, 1-percent, and fat-free) in selected
markets for January 1996 through February 1998.  Appendix VI provides
the results of our analysis using an alternate method suggested by
the Economic Research Service to calculate farm-level prices. 


--------------------
\1 Our Mar.  1998 report provided information on (1) the entities
that handle fluid milk from the time it leaves the farm to the time
it is sold to the consumer, including regional variations, and (2)
prices for dairy and other food products at various market levels
nationally and in certain urban markets across the country for the
period Dec.  1990 through Sept.  1997. 

\2 According to USDA officials, a portion of the amount received by
cooperatives may be used to pay costs, such as hauling, in some
markets. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :1

We provided copies of a draft of this report to USDA and the
Department of Defense for their review and comment.  We met with
officials from USDA's Agricultural Marketing Service, Economic
Research Service, and Rural Business Service, including the Associate
Deputy Administrator, branch chiefs, and others, to discuss their
comments on the draft report.  These officials had several concerns
about our use of USDA's published data for the mailbox and announced
cooperative price series as surrogates for farm- and
cooperative-level prices, and our use of commissary prices as a
surrogate for wholesale prices.  Specifically, the officials made the
following comments: 

  -- Using the mailbox price\3 as the farm-level price understates
     the amount that farmers receive for a gallon of fluid milk by
     different amounts for various markets.  This is because the
     mailbox price is the average price received by all farmers in
     the market for all uses of milk, and the actual prices received
     by farmers for milk used in fluid products would vary by market,
     depending upon the proportion of milk used in that market for
     products other than fluid milk, the costs and profits from
     manufacturing milk, and other factors that are unrelated to the
     fluid milk market.  During our meeting, Economic Research
     Service officials suggested what they believe is a better
     measure of farm-level prices for fluid milk.\4 However, these
     officials stated that while their suggested method might provide
     a better estimate of the farm-level price for fluid milk, it
     would still not provide a perfect estimate because it is
     impossible to isolate the price for fluid milk in a market where
     there is concurrent demand for milk used for other products.  We
     were aware of the limitations of using mailbox prices as a
     surrogate for farm-level prices for fluid milk and therefore
     included a discussion of these limitations in appendix I of the
     draft report.  However, we chose to use the mailbox price in our
     analysis because it is routinely published and is, in the dairy
     industry, a relatively well-recognized estimate of the average
     price received by farmers.  We continue to believe that it
     provides an adequate proxy for determining the relative portions
     of the retail price received by the various entities in the
     farm-to-retail milk marketing chain and the associated trends in
     changes to these portions.  Our views were generally shared by
     the dairy industry experts who we spoke with.  However, to
     provide additional perspectives on fluid milk prices, we
     calculated the farm-level prices for 24 of the 31 markets for
     which the necessary data were available using the method
     suggested by the Economic Research Service officials.  We found
     that by using this methodology, farmers, on average, received 47
     percent of the retail price for a gallon of 2-percent milk
     instead of the 43 percent that we calculated using the mailbox
     price, and cooperatives received 6 percent of the retail price
     instead of 10 percent in the 24 markets from January 1996
     through February 1998.  Appendix VI contains additional data and
     analysis of fluid milk prices using the Economic Research
     Service's methodology. 

  -- USDA officials also told us that the manner in which we used the
     announced cooperative price series overstates the cooperatives'
     share of the retail price.  In part, this is because the
     announced cooperative price includes certain revenues that are
     not retained by the cooperative but are used to cover costs such
     as hauling.  The officials acknowledged, however, that it is
     difficult to calculate the actual share of the retail milk price
     that is received by cooperatives.  We have revised the report to
     indicate that a portion of the announced cooperative price may
     be used to pay for some costs, such as hauling, in some markets. 

  -- Finally, according to the officials, commissary prices may not
     be a good surrogate for wholesale prices because (1) some of the
     commissaries are not in close proximity to the markets we
     analyzed, (2) the wholesale price data were derived from a
     single store in each market we analyzed, and (3) the commissary
     price is based on contracts awarded to the lowest-cost bidder
     and is the result of a rigid bidding process that may not
     reflect the wholesale prices paid by retailers in a given
     market.  Commissary prices were the best surrogate we could
     obtain for wholesale prices because of the proprietary nature of
     wholesale price data.  We generally agree with USDA's concerns
     that commissary prices may not be fully representative of
     wholesale prices because they are derived from a single store in
     each of the markets and are often based on contracts awarded to
     the lowest-cost bidder.  However, we disagree with USDA's
     comment that the commissaries we selected were not in close
     proximity to the markets we analyzed.  As displayed in Figure
     I.1 in appendix I, for almost all of the 31 markets included in
     our analysis, the commissary that we selected was within the
     marketing area being analyzed.  Moreover, according to industry
     representatives with whom we shared our analysis, the commissary
     prices appear to be a valid surrogate for actual wholesale
     prices. 

USDA officials also provided us with technical comments that we have
incorporated into the report as appropriate. 

Department of Defense officials advised us that they agreed with the
information included in this report on milk prices obtained from
defense commissaries and had no other comments. 


--------------------
\3 The mailbox price is the weighted average of the prices received
by all dairy farmers in the market and therefore is computed as the
total net dollars received for milk divided by the total pounds of
milk marketed. 

\4 The Economic Research Service-suggested formula for estimating
farm-level prices for fluid milk is computed by subtracting the
difference between the federal order blend price--which is the price
paid to producers, specifically, and is the weighted average of the
values of all classes of milk used by all processors--and the mailbox
price from the federal order minimum class I price--which is the
minimum price for Grade A milk used to produce fluid milk products. 


---------------------------------------------------------- Letter :1.1

To identify the major factors that influence the price of milk as it
moves from the farm to the consumer, we obtained and analyzed studies
performed by USDA, universities, and private entities, and spoke to
state government and industry representatives and officials at USDA. 
To report on the various relationships among prices at the farm
through retail levels, we obtained information on milk prices in 31
selected markets throughout the United States.  These markets were
selected because (1) data were available for these locations, (2)
they provided geographical coverage for the nation, and (3) they
represented a cross section of state- and federally regulated
markets.  For these markets, we obtained data from USDA, state milk
control agencies, the Department of Defense, and a private data
collection company on the prices received by farmers, cooperatives,
wholesalers, and retailers for January 1996 through February 1998. 
We limited our data collection efforts to the sale of whole,
2-percent, 1-percent, and fat-free fluid milk sold in gallon
containers, which represents about 64 percent of the fluid milk sold
in the United States, and we limited our data analysis to 2-percent
milk sold in gallon containers.  Our analysis of 2-percent milk may
not reflect pricing patterns and trends for the other kinds of milk. 
A more detailed description of our scope and methodology is presented
in appendix I.  We have attributed all of the data used in our
analysis to the source from which they were obtained and have not
verified the accuracy of these data because the information from
which they were compiled was not available to us. 

We conducted our review from November 1997 through September 1998 in
accordance with generally accepted government auditing standards. 

As arranged with your offices, unless you publicly announce its
contents earlier, we will make no further distribution of this report
until 30 days after the date of this letter.  At that time, we will
send copies to the Senate Committee on Agriculture, Nutrition, and
Forestry; the House Committee on Agriculture; other appropriate
congressional committees; interested Members of Congress; the
Secretary of Agriculture; the Director, Office of Management and
Budget; and other interested parties.  We will also make copies
available to others upon request. 

Please contact me at (202) 512-5138 if you or your staff have any
questions about this report.  Major contributors to this report are
listed in appendix VII. 

Robert E.  Robertson
Associate Director, Food
 and Agriculture Issues


OBJECTIVES, SCOPE, AND METHODOLOGY
=========================================================== Appendix I

In August 1997, Senators Jeffords and Leahy requested GAO to examine
a number of issues concerning the pricing and marketing of fluid
drinking milk (fluid milk) in the United States.\1 This report
provides information on (1) the factors that influence the price of
fluid milk as it moves from the farm to the consumer, (2) the portion
of the average retail price of fluid milk that is received by
farmers, cooperatives, wholesalers, and retailers in selected markets
nationwide, (3) changes in farm and retail prices and their effect on
the farm-to-retail price spread--which is the difference between the
retail and farm prices, (4) the way changes in prices at any given
level in the milk marketing chain are reflected in changes in prices
at the other levels, and (5) different retail pricing relationships
that exist in selected markets among the four kinds of milk--whole,
reduced-fat (2-percent), low-fat (1-percent), and fat-free (skim). 

To identify the major factors that influence the price of milk as it
moves from the farm to the consumer, we obtained and analyzed studies
performed by researchers at the U.S.  Department of Agriculture
(USDA), universities, and private entities.  These included milk
marketing cost studies performed by USDA's Economic Research Service
and researchers at Cornell University, and studies on retail pricing
strategies performed by Texas A&M University researchers and various
state and private entities.  We interviewed officials at USDA,
academic researchers, and industry representatives.  We were also
referred by the International Dairy Foods Association, Food Marketing
Institute, and National Milk Producers Federation to some of their
members, who spoke to us about the factors that they believe
influence the price of milk as it moves from the farm to the
consumer. 

To obtain information on the portion of the retail price received by
farmers, cooperatives, wholesalers, and retailers; changes in farm
and retail prices and their effect on farm-to-retail price spreads;
and the relationship among price changes at different marketing
levels, we obtained information on milk prices in 31 selected markets
throughout the United States.  These markets were selected because
(1) data were available for these locations, (2) they provided
geographical coverage for the nation, and (3) they represented a
cross section of state- and federally regulated markets.  For these
markets, we collected data on the prices received by farmers,
cooperatives, wholesalers, and retailers for January 1996 through
February 1998.  We limited our data collection efforts to the sale of
whole, 2- percent, 1-percent, and fat-free fluid milk sold in gallon
containers, which represent about 64 percent of the fluid milk sold
in the United States. 

It is important to recognize that there does not exist a precise
method by which to calculate or determine the price received by
farmers and cooperatives for fluid milk.  It is almost impossible to
isolate the value of milk used for one type of product when there are
competing demands for milk for use in other products.  Any method
that is selected will only provide an approximation of the value of
milk received by farmers and cooperatives and should not be viewed as
a precise measure. 

For farm-level prices, we used data from USDA's Agricultural
Marketing Service's (AMS) mailbox price series.  The mailbox price is
representative of the average price received by dairy farmers who
sell milk to cooperatives, bottlers, and processors that are
regulated under federal milk marketing orders.\2 The mailbox price is
the weighted average of the prices received by all dairy farmers in
the market and therefore is computed as the total net dollars
received for milk divided by the total pounds of milk marketed.  This
price includes returns from all milk uses, such as milk used to
manufacture cheese and butter, and not just milk used for fluid
purposes; therefore, it does not exactly reflect the amount of money
received by farmers for milk used only for fluid purposes.  AMS
developed the mailbox price series in 1995, at the request of the
industry, to more accurately reflect the amount of money farmers
receive for their unprocessed milk, and it is currently the best data
available on the price of milk at the farm level.  However, according
to AMS officials, this price tends to understate the prices received
by farmers for the portion of their milk that is used in fluid milk
products.  AMS collects data on mailbox prices for 25 of the 31
locations that we analyzed.  Four locations that we included in our
analysis--Bismarck, North Dakota; Richmond, Virginia; and San Diego
and Sacramento, California--are not under a federal milk marketing
order, and AMS does not collect mailbox price data for them.  As a
result, for Bismarck and Richmond, we relied on data collected by the
National Agricultural Statistics Service (NASS).  NASS collects data
for these locations on the price paid to dairy farmers who marketed
Grade A milk.\3 This price was adjusted by an amount that represents
the national average for typical deductions from dairy farmers',
checks such as hauling costs, cooperative dues, and national dairy
board assessments.\4 For San Diego and Sacramento, we used data
collected by the California state government.  For two other
markets--Kansas City, Missouri, and Phoenix, Arizona--although AMS
collects mailbox prices, it could not share this information with us
because of concerns about data confidentiality.  Consequently, for
these markets, we used the federal milk marketing order blend price
for the Greater Kansas City and the Central Arizona federal milk
marketing orders, respectively, adjusted by an amount that represents
the national average for typical deductions from dairy farmers'
checks--such as hauling costs, cooperative dues, and national dairy
board assessments--to represent mailbox prices. 

For cooperative-level prices, we used AMS' announced cooperative
prices to represent prices paid by bottlers to cooperatives. 
Bottlers in federally regulated markets generally purchase milk from
cooperatives and pay the federal minimum price for fluid milk plus
premiums established by the cooperatives.  The announced cooperative
price is the Class I milk price announced by the major cooperative in
each of the markets.\5 The announced cooperative price does not apply
to all Class I sales in these markets and is not necessarily the
price actually received for all of the fluid milk sold by the major
cooperative.  The announced cooperative prices have not been verified
as actually having been paid by handlers.  For Bismarck, North
Dakota; Richmond, Virginia; and San Diego and Sacramento, California;
which are state-regulated markets, we used the minimum fluid prices
established by the states.  Data on premiums paid in excess of these
minimums were not available for these markets.  For Augusta, Maine,
we used the Maine Dealer Cost; for Vermont, New Hampshire, Las Vegas,
Nevada, Orlando, Florida, and New York City, New York, we used AMS'
estimated cooperative prices. 

For wholesale-level prices, we used the prices paid by the Department
of Defense's Commissary Agency under competitive contracts to
wholesalers.  We used commissary prices as a surrogate for privately
established wholesale prices because (1) defense commissaries sell
groceries at cost to active and retired military personnel and (2)
wholesale price data are considered proprietary by industry officials
and were not available to us.  According to Defense Commissary
officials, the commissary network of stores ranks seventh in the
United States in terms of sales volume for supermarket chains.  For
each of our 31 markets, we selected a nearby commissary, and the
Defense Commissary Agency provided us with the monthly wholesale
prices paid by the selected commissaries for gallons of whole,
2-percent, 1-percent, and fat-free milk.  We recognize that these
locations may not provide an ideal match with the other price data
analyzed for a given location; however, these were the best wholesale
data that we could obtain.  In those locations where commissaries
sold more than one brand of milk, we obtained the prevailing price
for the brand that had the highest sales volume for the period we
reviewed.  Figure I.1 shows the locations of the 31 selected markets
and corresponding commissaries. 

   Figure I.1:  Selected Fluid
   Milk Markets and the
   Corresponding Defense
   Commissaries Used for Our
   Analysis of Milk Prices

   (See figure in printed
   edition.)

For retail-level prices, we contracted with A.C.  Nielsen, a private
data collection and analysis company, to obtain average monthly
retail prices for gallons of whole, 2-percent, 1-percent, and
fat-free milk for supermarkets with yearly sales exceeding $2 million
in 25 of the 31 markets included in our analysis.  We were able to
use these data for 27 of the 31 markets we analyzed because data for
A.C.  Nielsen's Boston market also includes data for the Rhode Island
and New Hampshire markets.  For the other four markets--Augusta,
Maine; Bismarck, North Dakota; Las Vegas, Nevada; and Vermont--where
privately collected data were not available, we used the retail price
data obtained by the milk control agencies for these states. 

To determine the (1) portion of the retail price that is received by
farmers, cooperatives, wholesalers, and retailers; (2) changes in
retail and farm prices and their effect on the farm-to-retail price
spread; and (3) the way in which changes in prices at any given level
in the milk marketing chain are reflected in changes in prices at the
other levels, we limited our analysis to 2-percent milk, which
currently represents the largest volume of reduced-fat milk sold
nationally.  Our analysis of 2-percent prices may not necessarily
reflect pricing patterns and trends for the other three kinds of
milk.  Appendix III includes graphs that show the relationships among
the farm, cooperative, wholesale, and retail prices for a gallon of
2-percent milk for each of the 31 markets.  Because the farm-level
and cooperative-level prices reflect a higher butterfat content than
is present in 2-percent milk, we adjusted these prices to reflect the
value of removing butterfat and replacing it with skim milk.\6 This
adjustment allowed us to use farm- and cooperative-level prices that
were comparable to the wholesale- and retail-level prices for our
analysis. 

To determine how much farm and retail prices had changed and the
effect of these changes on the farm-to-retail price spread from
January 1996 through February 1998 for each of the 31 markets, we
used a statistical procedure to estimate mailbox and retail prices at
the beginning and end of the period.\7

We used estimated rather than actual prices to reduce the influence
of the starting and ending dates selected for our analysis in markets
in which there is considerable month-to-month variability in milk
prices.  The differences between the estimated initial and final
prices represent the trend changes during the period.  In some cases,
this difference may be zero because there is no apparent trend.  We
calculated the change in the farm-to-retail price spread as the
estimated retail price difference minus the estimated mailbox price
difference. 

To describe how changes in prices at any given level in the milk
marketing chain were reflected in changes in prices at the other
levels in each of the 31 markets included in our analysis, we tested
for correlations between price changes at the various levels. 
Specifically, we calculated coefficients describing the degree of
correlation between changes in mailbox prices and changes in prices
at the cooperative, wholesale, and retail levels; changes in
cooperative-level prices and changes in prices at the wholesale and
retail levels; and changes in prices at the wholesale and retail
levels.  In appendix III, we report those correlation coefficients
that are statistically different from zero at the 95-percent
confidence level.  Although we only report correlations between price
changes that occur in the same month, we also calculated correlations
under the assumption of lagged effects (such as the correlation
between changes in wholesale prices in the current month and changes
in cooperative-level prices in the previous month).  In general, we
found fewer markets with statistically significant correlations when
we took lagged effects into account, although when effects were
assumed to be lagged, the correlations were greater in some markets. 

To provide information on the relationships among retail prices for
all four kinds of milk, we analyzed the retail price data that we
obtained from A.C.  Nielsen and the state milk control agencies. 
These data are arrayed in appendix IV for each of the selected 31
markets for January 1996 through February 1998. 

When we met with USDA officials to obtain their comments on a draft
of this report, officials from the Economic Research Service (ERS)
suggested an alternative method by which we could better estimate the
farm-level price of a gallon of unprocessed milk used for fluid
purposes compared to the mailbox price.  They believe that the farm
value of fluid milk is better defined as the minimum order Class I
price minus the difference between the minimum order blend price and
the mailbox price.  However, this methodology to calculate an
alternative farm price assumes that all classes of milk are equally
profitable to the cooperative at the prevailing prices.  We used the
ERS method to calculate farm-level prices for the 24 markets in our
sample of 31 markets that are under the federal milk marketing order
program.  Appendix VI provides our analysis using this alternative
farm-level price for fluid milk for these 24 markets. 


--------------------
\1 In response to this request, we issued a report on Mar.  16, 1998,
entitled Dairy Industry:  Information on the Marketing Channels and
Prices for Fluid Milk (GAO/RCED-98-70) that provided information on
(1) the entities that handle fluid milk from the time it leaves the
farm to the time it is sold to the consumer, including regional
variations, and (2) prices for dairy and other food products at
various market levels nationally and in certain urban markets across
the country. 

\2 Federal milk marketing orders establish minimum prices for
unprocessed milk.  Handlers regulated under the federal milk
marketing orders process about 75 percent of the total fluid milk
produced in the United States. 

\3 Grade A milk is the only milk that can be used for fluid purposes. 
Grade A milk producers must adhere to higher standards than those who
produce grade B milk.  Grade B milk can only be used for
manufacturing purposes, such as to make butter and cheese. 

\4 National dairy board assessments are amounts paid by producers to
promote and conduct research on dairy products. 

\5 Under the federal milk marketing orders, a classified pricing plan
provides different classes and minimum prices for milk depending on
how the milk is used.  Milk used in fluid products is placed in Class
I, which is the highest-priced class.  Milk used for various
manufactured products is placed in lower-priced classes. 

\6 For Sacramento and San Diego, California, we used prices that were
adjusted for 2-percent butterfat and 10-percent nonfat milk solids so
that they were comparable with retail milk sold in that state. 

\7 A regression procedure was used for each market to determine
whether the price could be reliably predicted as a function of time
for both mailbox and retail prices.  This procedure allowed us to
estimate initial and final prices for mailbox and retail prices that
take into account the variability in these price series during the
26-month period.  A statistically significant relationship indicates
that a stable trend, either up or down, was found between price and
time.  For statistically significant relationships, a final price
estimate (computed for the last month of our data series) was
calculated and compared to an estimated price calculated for the
first month.  In the absence of a statistically significant
relationship--when no trend differing from zero was found-- initial
and final estimates of price are the same, even if actual beginning
and final prices differ. 


FACTORS THAT INFLUENCE THE PRICE
OF FLUID MILK AS IT MOVES FROM THE
FARM TO THE CONSUMER
========================================================== Appendix II

About 6 billion gallons of the approximately 18 billion gallons of
milk produced by U.S.  dairy farmers each year is processed into
fluid milk that has a retail value of about $19 billion.\1 Dairy
farmers receive a price for unprocessed milk, and each entity that is
involved in the processing and marketing of fluid milk adds value to
the product and receives a portion of the difference between the farm
and retail price.  (This difference is known as the price spread.)
This appendix describes how unprocessed milk prices are determined at
the farm level and the factors that influence the price of milk as it
moves from the farm to the retail level.  This appendix also provides
information on the costs associated with marketing milk, as estimated
by researchers at Cornell University, and industry officials' views
regarding these estimates.  We could not obtain specific cost data
for our analysis because wholesale and retail cost data in the
private sector are proprietary. 


--------------------
\1 Fluid milk products include flavored milks, buttermilk, whole,
2-percent, 1-percent, and fat-free milk. 


   FEDERAL AND STATE POLICIES
   INFLUENCE MILK PRICES AT THE
   FARM
-------------------------------------------------------- Appendix II:1

Prices at the farm level for unprocessed milk sold for use in fluid
milk products are determined by supply and demand forces that are
influenced by federal and state dairy programs.  These programs
ensure that dairy farmers receive at least a specified minimum price
for their unprocessed milk.  The primary federal programs include the
milk marketing order and dairy price support programs.  The federal
and state programs were established to provide a safety net for
individual farmers who lack market power compared with other
entities, such as wholesalers and retailers. 

About 75 percent of the milk produced in the United States is
regulated under the federal milk marketing order program, which was
established in 1937.  Some areas, such as California, are not under
the federal program and are covered by state programs.  In these
areas, dairy farmers are paid minimum milk prices that are
established by the state government.  The milk marketing order
program sets minimum prices for unprocessed milk; these minimum
prices are based on the way the milk is to be used.  Minimum prices
paid to farmers for unprocessed fluid grade milk are based on the
prices paid to the farmers who produce manufacturing-grade milk in
Minnesota and Wisconsin.  Manufacturing-grade milk can only be used
for making products such as butter and cheese.  This milk is not
regulated and therefore its market price is based on supply and
demand conditions.  For milk used for fluid products, a differential
is added to the minimum price for milk used for manufacturing
purposes.  This differential varies throughout the United States and
generally increases as the distance increases from Eau Claire,
Wisconsin.  The extent to which these differentials will affect the
average price of milk the farmer receives depends on the extent to
which the total supply of milk in a specific market area is used for
fluid or manufacturing purposes.  Buyers of milk regulated by federal
and state orders are permitted to pay farmers prices in excess of the
established minimums.  Any such excess payments are determined by
market forces. 

In addition to the federal and state milk marketing order programs,
the federal dairy price support program, created in 1949, supports
farm-level prices by providing a standing offer to purchase butter,
cheese, and nonfat dry milk at specified prices.  The prices offered
for these dairy products are intended to provide sufficient revenue
so that dairy product manufacturers can pay farmers the legislatively
mandated support price.  This program has the effect of providing a
floor for the price of milk used for manufacturing purposes.  As a
result, it influences the price that farmers receive for milk used
for fluid purposes under the milk marketing order program because the
support price sets a floor below which manufacturing grade milk
prices are unlikely to fall for very long.  The price support program
offers a safety net to all dairy farmers, including those not
participating in federal or state milk marketing orders. 


   SERVICES PROVIDED BY DAIRY
   COOPERATIVES AFFECT THE PRICE
   OF MILK
-------------------------------------------------------- Appendix II:2

The price that cooperatives charge wholesalers for fluid milk is
influenced by the minimum price established by federal and state milk
marketing order programs, the services that the cooperatives provide,
and the relative market power of cooperatives and processors. 

About 86 percent of all milk produced by farmers is marketed through
dairy cooperatives that are owned and financed by farmer-members.\2
Cooperatives can either (1) process, package, and distribute the
resulting fluid milk to retail outlets for sales to consumers or (2)
sell the unprocessed milk to wholesalers who process, package, and
distribute fluid milk for sale to retail outlets.\3 Cooperatives
operate like corporate businesses to perform services for their
members.  Some distinctive features of cooperatives include
member-user ownership and control, services at cost to their members,
and distribution of income to their members on the basis of their
patronage. 

Cooperatives generally sell unprocessed milk to wholesalers at prices
that are higher than the federal or state minimums for fluid milk. 
In federally or state-regulated markets, any differences between the
prices charged to the wholesalers and the milk marketing order
minimums are known as over-order premiums.  These premiums are
primarily determined by the marketplace rather than the federal milk
marketing order program.  Over-order premiums compensate cooperatives
for the services they provide, such as transporting milk from
different milk-producing areas, and also reflect the market power
acquired by cooperatives relative to processors. 


--------------------
\2 Milk not marketed through cooperatives is sold directly to
processors or, in some instances, is processed into dairy products by
farmers themselves.  Cooperatives process and market about 16 percent
of all fluid milk produced. 

\3 See our Mar.  1998 report entitled Dairy Industry:  Information on
Marketing Channels and Prices for Fluid Milk (GAO/RCED-98-70, Mar. 
16, 1998) for more information on the role of cooperatives and other
entities in the marketing of fluid milk. 


   WHOLESALERS' PROCESSING,
   PACKAGING, AND DISTRIBUTING
   COSTS AFFECT THE PRICE OF FLUID
   MILK
-------------------------------------------------------- Appendix II:3

The price that wholesalers charge retailers for fluid milk is
influenced by the costs they incur for processing, packaging, and
distributing fluid milk to retail outlets and by the wholesalers'
interest in earning a return on investment.  Wholesalers include
bottlers and major retail food chains with bottling plants.\4
Processing services provided by wholesalers include pasteurization,
homogenization, and the standardization of butterfat and nonfat
solids in flavored milks, buttermilk, whole, 2-percent, 1-percent,
and fat-free milk.  Wholesalers package these products into a variety
of types and sizes of containers and arrange for their distribution
to retail outlets for sale to consumers.  In addition to shipping the
products to retailers, some wholesalers provide different levels of
in-store service, according to industry officials.  For example, some
wholesalers provide a full range of services to retailers--unloading
the milk at the store dock, restocking the dairy case, and removing
outdated and/or leaking containers.  In contrast, other wholesalers
may not provide any services to retailers beyond their shipping
docks.  Differences in wholesale-level prices reflect differences in
any or all of these factors. 

Furthermore, according to dairy industry officials we spoke to, in
some highly regulated markets, state regulations may increase both
wholesale and retail prices.  For example, an official from one of
the nation's largest grocery wholesalers told us that in North Dakota
the distribution of milk is restricted to wholesalers approved by the
state.  Consequently, milk can only be delivered to retail stores on
trucks owned by an approved wholesaler.  This requirement prohibits
retailers and nonapproved wholesalers from using their own trucks to
deliver milk to retail stores, which in some cases may be a less
costly and more economical delivery method. 

Typically, wholesale cost and pricing data in the private sector are
not available to the public because such data are considered
proprietary.  In addition, any sharing of cost or pricing data with
competitors or others could be considered a violation of state and/or
federal antitrust laws.  In the absence of specific cost data, we
obtained cost estimates from researchers at Cornell University that
are based on information obtained from a survey of wholesalers.  The
researchers surveyed 35 well-managed plants, operated by 23
companies.\5 The 35 sampled plants included 22 proprietary plants, 5
cooperative plants, and 8 supermarket-owned plants.  The plants
processed an average of 28 million pounds of milk per month, ranging
from slightly more than 13 million pounds to more than 51 million
pounds.  Distribution cost estimates were based on large accounts
served by the plants, including supermarkets, large convenience
stores, and club stores. 

On the basis of the survey data they received from the wholesalers,
the Cornell researchers estimated the cost of marketing fluid milk
products.  For example, the researchers estimated that in 1995, it
cost about $2.12 to market a gallon of 2-percent milk, through a
large supermarket in the New York metropolitan area.  (This amount
also included an estimated 19 cents per gallon for handling costs
incurred by the retailer and the retailer's return on investment.)
Figure II.1 shows the various costs associated with marketing a
gallon of 2-percent milk through supermarkets in the New York
metropolitan area in 1995. 

   Figure II.1:  Estimated Costs
   of Marketing a Gallon of
   2-Percent Milk in the New York
   Metropolitan Area, 1995

   (See figure in printed
   edition.)

According to officials of dairy cooperatives, wholesalers, and
retailers of fluid milk, the estimates developed by the researchers
at Cornell University were generally representative of the cost of
performing fluid milk processing and marketing functions.  However,
they told us that the costs for distributing milk in other markets
could be significantly higher than the 10 cents per gallon estimated
in the study for the New York metropolitan area.  In particular,
distribution costs in rural markets could range as high as 25 to 40
cents a gallon.  According to one industry official, delivery costs
to rural markets are higher than some urban markets because
wholesalers have to deliver smaller quantities of fluid milk products
to more isolated, rural stores.  These additional costs are often
reflected in higher wholesale and retail prices for fluid milk in
these areas. 


--------------------
\4 Wholesalers also include cooperatives that process, package, and
distribute fluid milk for sale to retailers. 

\5 Erba, E.M.  , R.D.  Aplin, and M.W.  Stephenson, An Analysis of
Processing and Distribution Productivity and Costs in 35 Fluid Milk
Plants.  R.B.  97-03, Department of Agricultural, Resource, and
Management Economics.  (Ithaca, NY:  Cornell University, 1997). 


   RETAIL MILK PRICES DEPEND ON
   THE PRICING STRATEGIES USED BY
   RETAILERS
-------------------------------------------------------- Appendix II:4

Prices that consumers pay retailers for fluid milk are influenced not
only by supply and demand considerations that determine the overall
retail-level market price for fluid milk but also by specific
considerations that affect prices at individual retail outlets.  With
respect to determining the overall price charged at the retail level,
the quantity of fluid milk supplied by retailers is influenced by the
prices that retailers have to pay wholesalers to acquire the product,
retailers' operating costs, such as labor, rent, and utilities, and
their required return on investment.  On the other hand, the amount
of fluid milk that consumers want to purchase at the retail level is
influenced not only by the price of fluid milk, but also by such
factors as the size, age, and income levels of the population in the
marketing area, and the prices of substitutes.  Studies performed by
economists and others over the years have shown that the demand for
milk at the retail level is relatively insensitive to changes in the
price for fluid milk because of the lack of close substitutes. 
Generally, these studies have concluded that a 10-percent increase or
decrease in the price of fluid milk will result in less than a
10-percent decrease or increase in the quantity that consumers will
purchase.\6 However, several industry officials told us that they
believe that the demand for milk in recent years has become more
sensitive to price changes than previously thought. 

For individual retail outlets, additional considerations may
influence the manner in which retail prices for milk are set.  To
meet their stores' goals, such as profit maximization and increased
market share, retailers may use a number of strategies for pricing
fluid milk.  In developing these pricing strategies, retailers
consider their retailing costs, the prices charged by their
competitors, the role that milk prices play in attracting customers
to their stores, the convenience offered by their store compared with
other stores, and their desire to build an image of quality or low
prices for their stores.  Those retail pricing strategies that are
primarily based on a retailer's operating costs are generally
referred to as vertical pricing strategies, whereas those strategies
that are based on responding to prices charged by competitors are
referred to as horizontal pricing strategies.  Retailers may use a
combination of horizontal and vertical pricing strategies when
setting prices for fluid milk. 

A vertical pricing strategy is a method by which retailers price
fluid milk products to cover the costs associated with operating
their stores.  The retail price is set in a manner that allows them
to recoup (1) the price paid to fluid milk wholesalers; (2) operating
costs such as rent, labor, interest expense, and general overhead;
and (3) a return on investment.  Some retailers use a variable markup
strategy that allows them to charge different markups on various
products sold in their stores while seeking an overall profit margin
target for the store.  For example, a retailer who wishes to promote
a low-cost image for the store may sell gallons of 2-percent milk at
or near cost while raising the price of other items in the store.  On
the other hand, retailers wishing to increase the profitability of
the dairy section might maintain relatively high prices for fluid
milk but set lower prices for other items in the store.  According to
state and dairy industry officials, the latter situation has existed
during the last couple of years in the Minneapolis market. 
Retailers' pricing strategy choices will depend on their views about
the importance of milk prices versus the prices of other products
sold in their stores in influencing consumers' overall perceptions
about their stores. 

A horizontal pricing strategy is a method by which retailers set
fluid milk prices in response to the prices being charged by
competitors in their area.  Retailers pursuing such strategies are
very sensitive to price levels at neighboring retail outlets and will
adjust their prices accordingly to create an image of lower or more
competitive prices.  Also, retailers pursuing horizontal pricing
strategies may be less sensitive to market signals on the wholesale
price of milk.  Instead, retailers may continue to price milk at a
certain price even though wholesalers have either increased or
decreased prices. 

Furthermore, retail prices may be influenced by state regulations and
customers' desire for convenience or high quality.  For example,
dairy industry officials contend that state regulations that prohibit
wholesalers and retailers from selling milk below cost result in
higher retail milk prices.  Such regulations prevent retailers from
using lower-priced milk as a means of attracting more customers to
their stores.  In addition, according to industry officials, retail
prices for fluid milk may be influenced by the fact that some
consumers are willing to pay a higher price for convenience and
quality.  For example, convenience stores sell only a limited number
of items, which allows consumers to quickly purchase fluid milk and
spend the least amount of time necessary in the store.  As a result,
these stores can charge a higher price for fluid milk than
supermarkets charge primarily because of the convenience that they
provide.  Similarly, retail stores that emphasize high-quality
products may stock widely recognized brand-label fluid milk products
for which their customers are willing to pay a higher price because
they associate the brand label with better quality.  Industry
officials told us that some retailers believe that a stable retail
price for milk may also help create an impression of high quality. 


--------------------
\6 Some of these studies have estimated price elasticities of demand
for fluid milk as small as -0.15, which would imply only a
1.5-percent increase in the quantity that consumers purchase as a
result of a 10-percent decrease in price. 


ANALYSIS OF FARM-TO-RETAIL PRICES
FOR 2-PERCENT MILK IN SELECTED
MARKETS
========================================================= Appendix III

This appendix summarizes our analysis of farm-to-retail prices for a
gallon of 2-percent milk in 31 selected markets nationwide for
January 1996 through February 1998.  Our analysis includes
information on (1) the portion of the retail price that is received
by farmers, cooperatives, wholesalers, and retailers; (2) changes to
retail and farm-level prices and their effect on the farm-to-retail
price spread; and (3) the way in which changes in prices at any given
level in the milk marketing chain are reflected in changes in prices
at the other levels.  We limited our analysis to gallons of 2-percent
milk because in recent years sales of reduced-fat milk products have
increased and account for about 63 percent of all retail sales of
fluid milk.  Of this amount, sales of 2-percent milk account for
about 55 percent of the total sales of reduced-fat milk.  The farm
and cooperative prices included in our analysis and presented in this
appendix are adjusted for 2-percent butterfat.  Our analysis of
2-percent milk prices may not reflect pricing patterns and trends for
the other three kinds of milk.  Complete data on prices for all four
kinds of milk--whole, 1-percent, fat-free as well as 2-percent--are
presented in appendix V. 


   PORTION RECEIVED BY FARMERS,
   COOPERATIVES, WHOLESALERS, AND
   RETAILERS
------------------------------------------------------- Appendix III:1

From January 1996 through February 1998, for the 31 fluid milk
markets that we reviewed, farmers, on average, received 42 percent of
the retail price for a gallon of 2-percent milk, cooperatives
received 10 percent, wholesalers received 31 percent, and retailers
received 17 percent.  However, the portion received at any one level
in the marketing chain varied substantially among markets.  For
example, the portion of the average retail price that farmers
received ranged from about 31 to 54 percent and the portion that
retailers received ranged from about 4 to 31 percent in the markets
we reviewed, with one exception. 

In commenting on a draft of this report, USDA officials stated that
because the farm-level and cooperative-level prices used in our
analysis are not a measure of the prices that farmers and
cooperatives actually receive for milk used for fluid products, our
results understate the amount received by farmers and overstate the
cooperatives' share of the retail price, especially in some markets. 
Moreover, a portion of the amount received by the cooperatives may be
used by the cooperative to pay for some costs, such as hauling, in
some markets. 

Table III.1 provides these data for each of the selected markets. 



                              Table III.1
                
                Portion of the Retail Price of a Gallon
                 of 2-percent Milk Received by Farmers,
                Cooperatives, Wholesalers, and Retailers
                  for 31 Markets, January 1996 Through
                             February 1998

                                       Percent     Percent
                           Percent    received    received     Percent
                          received          by          by    received
Selected                        by  cooperativ  wholesaler          by
market area                farmers          es           s   retailers
----------------------  ----------  ----------  ----------  ----------
North Atlantic Region
----------------------------------------------------------------------
Augusta, Me.                    45          12          22          20
Boston, Mass.                   44          14          22          19
New Hampshire                   44          13          31          11
New Haven, Conn.                42          13          19          26
New York, N.Y.                  39          11          30          20
Philadelphia, Pa.               42          11          27          20
Rhode Island                    44          14          22          19
Vermont                         40          11          22          27
Washington, D.C.                42          11          16          30

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                    43           9          35          13
Louisville, Ky.                 48           7          33          11
Miami, Fla.                     43           8          33          16
New Orleans, La.                42           9          40           9
Orlando, Fla.                   44           6          32          18
Raleigh, N.C.                   45           7          43           4
Richmond, Va.                   40          13          24          22

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                   46           9          27          18
Cincinnati, Oh.                 53          11          32           4
Milwaukee, Wis.                 48           9          28          15

West-North Central Region
----------------------------------------------------------------------
Bismarck, N.D.                  31           7          39          22
Kansas City, Mo.                40           7          29          24
Minneapolis, Minn.              35           6          31          28

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                    44          11          40           5
Houston, Tex.                   47          13          41        -1\a

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                   38           9          22          31
Las Vegas, Nev.                 33           6          33          27
Phoenix, Ariz.                  54          10          32           5
Seattle, Wash.                  48           9          22          21
Sacramento, Calif.              42           9          29          20
Salt Lake City, Utah            44          10          43           4
San Diego, Calif.               36           8          36          19
Average for the 31              42          10          31          17
 markets
----------------------------------------------------------------------
\a Our analysis shows that retailers in the Houston market received
-1 percent of the retail price of a gallon of 2-percent milk for the
26-month period.  According to industry officials, this condition is
not unusual in markets like Houston, which are dominated by
vertically integrated processors and retailers and in which these
companies can use milk as a loss leader. 


   CHANGES IN FARM AND RETAIL
   PRICES AND THE PRICE SPREAD
------------------------------------------------------- Appendix III:2

From January 1996 through February 1998, retail fluid milk prices
remained constant or increased in 27 markets and decreased in 4
markets.  In contrast, farm prices decreased in 27 markets and
remained constant in 4 markets.  As a result of these price changes,
the farm-to-retail price spread increased in 27 of the 31 markets
over the 26-month period.  Table III.2 provides these data for each
of the selected markets.\1



                              Table III.2
                
                 Increases or Decreases in the Farm-to-
                 Retail Price Spread for a Gallon of 2-
                  percent Milk for 31 Markets, January
                       1996 Through February 1998

                                                             Increases
                                 Increases     Increases            or
                                        or            or  decreases in
                                 decreases     decreases           the
                                        in            in      farm-to-
Selected                        farm-level        retail        retail
market area                         prices        prices  price spread
----------------------------  ------------  ------------  ------------
North Atlantic Region
----------------------------------------------------------------------
Augusta, Me.                        $(.09)          $.35          $.44
Boston, Mass.                        (.09)           .30           .39
New Hampshire                        (.09)           .30           .39
New Haven, Conn.                     (.09)           .28           .37
New York, N.Y.                       (.14)           .09           .23
Philadelphia, Pa.                    (.13)            \a           .13
Rhode Island                         (.09)           .30           .39
Vermont                              (.09)           .19           .28
Washington, D.C.                     (.13)         (.08)           .05

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                         (.16)           .25           .41
Louisville, Ky.                      (.15)            \a           .15
Miami, Fla.                             \a            \a            \a
New Orleans, La.                     (.16)           .31           .47
Orlando, Fla.                           \a           .14           .14
Raleigh, N.C.                        (.16)            \a           .16
Richmond, Va.                        (.14)           .20           .34

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                        (.15)           .22           .37
Cincinnati, Ohio                     (.15)        (1.23)        (1.08)
Milwaukee, Wis.                      (.15)            \a           .15

West-North Central Region
----------------------------------------------------------------------
Bismarck, N.D.                       (.14)            \a           .14
Kansas City, Mo.                     (.16)            \a           .16
Minneapolis, Minn.                   (.15)         (.09)           .06

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                         (.12)           .20           .32
Houston, Tex.                        (.12)            \a           .12

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                        (.18)           .29           .47
Las Vegas, Nev.                      (.19)            \a           .19
Phoenix, Ariz.                       (.17)            \a           .17
Seattle, Wash.                       (.12)            \a           .12
Sacramento, Calif.                      \a            \a            \a
Salt Lake City, Utah                 (.19)            \a           .19
San Diego, Calif.                       \a         (.33)         (.33)
----------------------------------------------------------------------
\a Indicates that no statistically significant change was observed in
the price over the 26-month period and therefore represents a
constant price for that market. 


--------------------
\1 The values used to calculate increases or decreases in retail and
farm-level prices in table III.2 are based on statistical estimates
of initial and final prices for these two levels, not the actual
observed prices recorded in the first and last month of the period
for which we have data.  The method for calculating these estimates
is described in app.  I.  The changes in the farm-to-retail price
spreads are the differences between the changes in retail- and
farm-level prices from January 1996 to February 1998 and consequently
are determined from the statistically estimated initial and final
prices for the retail and farm levels. 


   CORRELATION BETWEEN PRICE
   CHANGES AT THE FOUR MARKETING
   LEVELS
------------------------------------------------------- Appendix III:3

The strongest correlation between changes in prices occurs between
any level and its adjacent level in the marketing chain.  For
example, in most of the markets we analyzed, there was a strong
correlation between changes in farm prices and changes in cooperative
prices.  Similarly, changes in wholesale prices were generally
reflected in changes in retail prices.  In contrast, changes in the
prices received by farmers less frequently correlated with changes in
retail prices than they were with changes in cooperative or wholesale
prices.  This is because, as discussed in appendix II, many factors
other than farm or wholesale prices influence the price of fluid milk
at the retail level.  Tables III.3 through III.5 present data on our
correlation analysis for price changes at the four marketing levels. 
The values of the correlation coefficients presented represent
estimates of the degree to which price changes at one level in the
milk marketing chain are associated with price changes at other
levels. 



                              Table III.3
                
                  Correlation Between Farm-Level-Price
                  Changes and Changes in Cooperative,
                   Wholesale, and Retail Prices for a
                Gallon of 2-percent Milk for 31 Markets,
                   January 1996 Through February 1998

                               Correlation   Correlation
                              coefficients  coefficients   Correlation
                                       for           for  coefficients
                               cooperative     wholesale    for retail
Selected market area                prices        prices        prices
----------------------------  ------------  ------------  ------------
North Atlantic Region
----------------------------------------------------------------------
Augusta, Me.                          .91*          .75*           .11
Boston, Mass.                         .86*          .55*           .08
New Hampshire                         .85*           .53           .08
New Haven, Conn.                      .86*          .74*         -0.06
New York, N.Y.                        .82*           .16           .38
Philadelphia, Pa.                     .87*          .44*          .63*
Rhode Island                          .86*          .61*           .08
Vermont                               .86*          .55*           .23
Washington, D.C.                      .87*          .85*          .50*

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                          .95*           .26           .16
Louisville, Ky.                       .87*           .35           .19
Miami, Fla.                           .94*          .42*          .45*
New Orleans, La.                      .88*           .09           .26
Orlando, Fla.                         .94*          .62*           .35
Raleigh, N.C.                         .94*           .25           .21
Richmond, Va.                         .87*          .52*           .11

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                          .05         -0.19           .01
Cincinnati, Ohio                      .98*           .38         -0.08
Milwaukee, Wis.                        .05         -0.19           .08

West-North Central Region
----------------------------------------------------------------------
Bismarck, N.D.                        .49*         -0.10         -0.06
Kansas City, Mo.                      .91*         -0.10          .56*
Minneapolis, Minn.                     .17         -0.09           .05

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                          .76*           .16           .17
Houston, Tex.                         .74*           .16           .03

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                         .69*           .35         -0.01
Las Vegas, Nev.                       .47*         -0.37           .21
Phoenix, Ariz.                        .78*           .37         -0.05
Seattle, Wash.                        .66*          .68*           .14
Sacramento, Calif.                    .48*           0.0          .45*
Salt Lake City, Utah                  .50*         -0.37         -0.12
San Diego, Calif.                     .48*          .51*          .40*
----------------------------------------------------------------------
Note:  In calculating the correlation coefficients for each market,
we omitted the months for which data were missing. 

*Indicates that the correlation coefficient is statistically
significant (i.e.  p < .05).  However, we have not included the
p-values in the table. 



                              Table III.4
                
                 Correlation Between Cooperative-Level-
                 Price Changes and Changes in Wholesale
                  and Retail Prices for a Gallon of 2-
                  percent Milk for 31 Markets, January
                       1996 Through February 1998

                                       Correlation         Correlation
                                  coefficients for    coefficients for
Selected market area              wholesale prices       retail prices
------------------------------  ------------------  ------------------
North Atlantic Region
----------------------------------------------------------------------
Augusta, Me.                                  .85*                 .23
Boston, Mass.                                 .70*                 .33
New Hampshire                                 .83*                 .31
New Haven, Conn.                              .83*                 .19
New York, N.Y.                                 .37                .67*
Philadelphia, Pa.                             .46*                .75*
Rhode Island                                  .81*                 .33
Vermont                                       .71*                 .32
Washington, D.C.                              .89*                .54*

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                                   .31                 .11
Louisville, Ky.                                .35                 .23
Miami, Fla.                                    .37                .49*
New Orleans, La.                               .26                .44*
Orlando, Fla.                                 .67*                .40*
Raleigh, N.C.                                  .37                 .31
Richmond, Va.                                 .64*                 .10

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                                  .28                 .11
Cincinnati, Ohio                               .40               -0.16
Milwaukee, Wis.                                .31                 .27

West-North Central Region
----------------------------------------------------------------------
Bismarck, N.D.                                 .44                .63*
Kansas City, Mo.                             -0.01                .51*
Minneapolis, Minn.                            .61*                .59*

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                                   .31                 .38
Houston, Tex.                                  .34                .42*

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                                 .75*                 .09
Las Vegas, Nev.                              -0.01                 .17
Phoenix, Ariz.                                .52*                 .12
Seattle, Wash.                                .85*                 .28
Sacramento, Calif.                             .41                .80*
Salt Lake City, Utah                         -0.15                 .38
San Diego, Calif.                             .81*                .62*
----------------------------------------------------------------------
Note:  In calculating the correlation coefficients for each market,
we omitted the months for which data were missing. 

*Indicates that the correlation coefficient is statistically
significant (i.e.  p < .05).  However, we have not included the
p-values in the table. 



                              Table III.5
                
                  Correlation Between Wholesale-Level-
                  Price Changes and Changes in Retail
                 Prices for a Gallon of 2-percent Milk
                  for 31 Markets, January 1996 Through
                             February 1998

                                          Correlation coefficients for
Selected market area                                     retail prices
----------------------------------------  ----------------------------
North Atlantic Region
----------------------------------------------------------------------
Augusta, Me.                                                       .28
Boston, Mass.                                                      .28
New Hampshire                                                     .90*
New Haven, Conn.                                                   .21
New York, N.Y.                                                     .26
Philadelphia, Pa.                                                 .47*
Rhode Island                                                      .46*
Vermont                                                           .51*
Washington, D.C.                                                  .53*

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                                                     -0.23
Louisville, Ky.                                                    .43
Miami, Fla.                                                      -0.15
New Orleans, La.                                                  .51*
Orlando, Fla.                                                      .39
Raleigh, N.C.                                                     .44*
Richmond, Va.                                                     .46*

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                                                    -0.08
Cincinnati, Ohio                                                   .16
Milwaukee, Wis.                                                   .62*

West-North Central Region
----------------------------------------------------------------------
Bismarck, N.D.                                                    .68*
Kansas City, Mo.                                                   .39
Minneapolis, Minn.                                                .46*

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                                                      .43*
Houston, Tex.                                                     .58*

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                                                    -0.02
Las Vegas, Nev.                                                  -0.69
Phoenix, Ariz.                                                     .44
Seattle, Wash.                                                     .08
Sacramento, Calif.                                                 .47
Salt Lake City, Utah                                             -0.41
San Diego, Calif.                                                 .61*
----------------------------------------------------------------------
Note:  In calculating the correlation coefficients for each market,
we omitted the months for which data were missing. 

*Indicates that the correlation coefficient is statistically
significant (i.e.  p < .05).  However, we have not included the
p-values in the table. 


   COMPARISON OF PRICES AT THE
   FOUR MARKETING LEVELS
------------------------------------------------------- Appendix III:4

Figures III.1 through III.31 present data for January 1996 through
February 1998 on farm, cooperative, wholesale, and retail prices for
gallons of 2-percent milk in each of the 31 markets for which we
obtained data.  Gaps in any of the lines shown in the following
graphs are the result of unavailable data. 

   Figure III.1:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Atlanta, Ga., Market

   (See figure in printed
   edition.)

Note:  For the Atlanta, Ga., market, the farm price is the Southeast
mailbox price; the cooperative price is the announced cooperative
price for Atlanta; the wholesale price is the price charged by the
commissary at the Athens Naval Supply Corps School; and the retail
price is the A.C.  Nielsen price for the Atlanta market. 

   Figure III.2:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Augusta, Me., Market

   (See figure in printed
   edition.)

Note:  For the Augusta, Me., market, the farm price is the New
England mailbox price; the cooperative price is the Maine dealer
cost; the wholesale price is the price charged by the commissary at
the Brunswick Naval Air Station; and the retail price is the price
reported by the state milk control agency for the Augusta market. 

   Figure III.3:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Bismarck, N.D., Market

   (See figure in printed
   edition.)

Note:  For the Bismarck, N.D., market, the farm price is based on
data collected by the National Agricultural Statistics Service on the
Grade A price paid to farmers in this area minus $.0602 per gallon
for hauling costs and other fees; the cooperative price is the North
Dakota State Order Class I price; the wholesale price is the price
charged by the commissary at the Minot Air Force Base; and the retail
price is the price reported by the state milk control agency for the
Bismarck market. 

   Figure III.4:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Boston, Mass., Market

   (See figure in printed
   edition.)

Note:  For the Boston, Mass., market, the farm price is the New
England mailbox price; the cooperative price is the announced
cooperative price for Boston; the wholesale price is the price
charged by the commissary at the Hanscom Air Force Base; and the
retail price is the A.C.  Nielsen price for the Boston market which
includes Rhode Island and parts of New Hampshire. 

   Figure III.5:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Chicago, Ill., Market

   (See figure in printed
   edition.)

Note:  For the Chicago, Ill., market, the farm price is the Chicago
Regional mailbox price; the cooperative price is the announced
cooperative price for Chicago; the wholesale price is the price
charged by the commissary at the Great Lakes Naval Training Center;
and the retail price is the A.C.  Nielsen price for the Chicago
market. 

   Figure III.6:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Cincinnati, Ohio, Market

   (See figure in printed
   edition.)

Note:  For the Cincinnati, Ohio, market, the farm price is the Ohio
Valley mailbox price; the cooperative price is the announced
cooperative price for Cincinnati; the wholesale price is the price
charged by the commissary at the Wright Patterson Air Force Base; and
the retail price is the A.C.  Nielsen price for the Cincinnati
market. 

   Figure III.7:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Dallas, Tex., Market

   (See figure in printed
   edition.)

Note:  For the Dallas, Tex., market, the farm price is the Texas
mailbox price; the cooperative price is the announced cooperative
price for Dallas; the wholesale price is the price charged by the
commissary at the Kelly Air Force Base; and the retail price is the
A.C.  Nielsen price for the Dallas market. 

   Figure III.8:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Denver, Colo., Market

   (See figure in printed
   edition.)

Note:  For the Denver, Colo., market, the farm price is the Eastern
Colorado mailbox price; the cooperative price is the announced
cooperative price for Denver; the wholesale price is the price
charged by the commissary at the Fitzsimons U.S.  Army Garrison; and
the retail price is the A.C.  Nielsen price for the Denver market. 

   Figure III.9:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Houston, Tex., Market

   (See figure in printed
   edition.)

Note:  For the Houston, Tex., market, the farm price is the Texas
mailbox price; the cooperative price is the announced cooperative
price for Houston; the wholesale price is the price charged by the
commissary at the Kelly Air Force Base; and the retail price is the
A.C.  Nielsen price for the Houston market. 

   Figure III.10:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Kansas City, Mo., Market

   (See figure in printed
   edition.)

Note:  For the Kansas City, Mo., market, the farm price is the
Greater Kansas City Blend price minus $.0602 per gallon for hauling
costs and other fees; the cooperative price is the announced
cooperative price for Kansas City; the wholesale price is the price
charged by the commissary at Fort Leavenworth; and the retail price
is the A.C.  Nielsen price for the Kansas City market. 

   Figure III.11:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Las Vegas, Nev., Market

   (See figure in printed
   edition.)

Note:  For the Las Vegas, Nev., market, the farm price is the Great
Basin mailbox price; the cooperative price is the estimated
cooperative price (Salt Lake City cooperative price minus $.0258 per
gallon); the wholesale price is the price charged by the commissary
at the Nellis Air Force Base; and the retail price is the price
reported by the state milk control agency for the Las Vegas market. 

   Figure III.12:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Louisville, Ky., Market

   (See figure in printed
   edition.)

Note:  For the Louisville, Ky., market, the farm price is the
Louisville, Lexington, and Evansville mailbox price; the cooperative
price is the announced cooperative price for Louisville; the
wholesale price is the price charged by the commissary at Fort Knox;
and the retail price is the A.C.  Nielsen price for the Louisville
market. 

   Figure III.13:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Miami, Fla., Market

   (See figure in printed
   edition.)

Note:  For the Miami, Fla., market, the farm price is the Florida
mailbox price; the cooperative price is the announced cooperative
price for Miami; the wholesale price is the price charged by the
commissary at the Key West Naval Air Station; and the retail price is
the A.C.  Nielsen price for the Miami market. 

   Figure III.14:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Milwaukee, Wis., Market

   (See figure in printed
   edition.)

Note:  For the Milwaukee, Wis., market, the farm price is the Chicago
Regional mailbox price; the cooperative price is the announced
cooperative price for Milwaukee; the wholesale price is the price
charged by the commissary at the Great Lakes Naval Training Center;
and the retail price is the A.C.  Nielsen price for the Milwaukee
market. 

   Figure III.15:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Minneapolis, Minn., Market

   (See figure in printed
   edition.)

Note:  For the Minneapolis, Minn., market, the farm price is the
Upper Midwest mailbox price; the cooperative price is the announced
cooperative price for Minneapolis; the wholesale price is the price
charged by the commissary at Fort McCoy; and the retail price is the
A.C.  Nielsen price for the Minneapolis market. 

   Figure III.16:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   New Hampshire Market

   (See figure in printed
   edition.)

Note:  For the New Hampshire market, the farm price is the New
England mailbox price; the cooperative price is the estimated
cooperative price (Boston cooperative price minus $.0129 per gallon);
the wholesale price is the price charged by the commissary at the
Portsmouth Naval Shipyard; and the retail price is the A.C.  Nielsen
price for the Boston market which includes Rhode Island and parts of
New Hampshire. 

   Figure III.17:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   New Haven, Conn., Market

   (See figure in printed
   edition.)

Note:  For the New Haven, Conn., market, the farm price is the New
England mailbox price; the cooperative price is the announced
cooperative price for Hartford; the wholesale price is the price
charged by the commissary at the New London Naval Submarine Base; and
the retail price is the A.C.  Nielsen price for the Hartford-New
Haven market. 

   Figure III.18:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   New Orleans, La., Market

   (See figure in printed
   edition.)

Note:  For the New Orleans, La., market, the farm price is the
Southeast mailbox price; the cooperative price is the announced
cooperative price for New Orleans; the wholesale price is the price
charged by the commissary at the New Orleans Naval Air Station; and
the retail price is the A.C.  Nielsen price for the New
Orleans-Mobile market. 

   Figure III.19:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   New York, N.Y., Market

   (See figure in printed
   edition.)

Note:  For the New York, N.Y., market, the farm price is the New
York-New Jersey mailbox price; the cooperative price is the estimated
cooperative price (New York Order Class I price plus $.0602 per
gallon); the wholesale price is the price charged by the commissary
at the United States Military Academy, West Point; and the retail
price is the A.C.  Nielsen price for the New York market. 

   Figure III.20:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Orlando, Fla., Market

   (See figure in printed
   edition.)

Note:  For the Orlando, Fla., market, the farm price is the Florida
mailbox price; the cooperative price is the estimated cooperative
price (Miami cooperative price minus $.0860 per gallon); the
wholesale price is the price charged by the commissary at the Orlando
Naval Training Center; and the retail price is the A.C.  Nielsen
price for the Orlando market. 

   Figure III.21:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Philadelphia, Pa., Market

   (See figure in printed
   edition.)

Note:  For the Philadelphia, Pa., market, the farm price is the
Middle Atlantic mailbox price; the cooperative price is the announced
cooperative price for Philadelphia; the wholesale price is the price
charged by the commissary at Carlisle Barracks; and the retail price
is the A.C.  Nielsen price for the Philadelphia market. 

   Figure III.22:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Phoenix, Ariz., Market

   (See figure in printed
   edition.)

Note:  For the Phoenix, Ariz., market, the farm price is the Central
Arizona Blend price minus $.0602 per gallon for hauling costs and
other fees; the cooperative price is the announced cooperative price
for Phoenix; the wholesale price is the price charged by the
commissary at the Luke Air Force Base; and the retail price is the
A.C.  Nielsen price for the Phoenix market. 

   Figure III.23:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Raleigh, N.C., Market

   (See figure in printed
   edition.)

Note:  For the Raleigh, N.C., market, the farm price is the Carolina
mailbox price; the cooperative price is the announced cooperative
price for Charlotte; the wholesale price is the price charged by the
commissary at Camp Lejeune; and the retail price is the A.C.  Nielsen
price for the Raleigh-Durham market. 

   Figure III.24:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Rhode Island Market

   (See figure in printed
   edition.)

Note:  For the Rhode Island market, the farm price is the New England
mailbox price; the cooperative price is the announced cooperative
price for Boston; the wholesale price is the price charged by the
commissary at the Newport Naval Education and Training Center; and
the retail price is the A.C.  Nielsen price for the Boston market
which includes Rhode Island and parts of New Hampshire. 

   Figure III.25:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Richmond, Va., Market

   (See figure in printed
   edition.)

Note:  For the Richmond, Va., market, the farm price is based on data
collected by the National Agricultural Statistics Service on the
Grade A price paid to farmers in this area, minus $.0602 per gallon
for hauling costs and other fees; the cooperative price is the
Virginia State Order Class I price; the wholesale price is the price
charged by the commissary at Fort Lee; and the retail price is the
A.C.  Nielsen price for the Richmond-Norfolk market. 

   Figure III.26:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Sacramento, Calif., Market

   (See figure in printed
   edition.)

Note:  For the Sacramento, Calif., market, the farm price is the
California mailbox price; the cooperative price is the Northern
California Class I price; the wholesale price is the price charged by
the commissary at the Stockton Naval Communications Station; and the
retail price is the A.C.  Nielsen price for the Sacramento market. 

   Figure III.27:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Salt Lake City, Utah, Market

   (See figure in printed
   edition.)

Note:  For the Salt Lake City, Utah, market, the farm price is the
Great Basin mailbox price; the cooperative price is the announced
cooperative price for Salt Lake City; the wholesale price is the
price charged by the commissary at the Hill Air Force Base; and the
retail price is the A.C.  Nielsen price for the Salt Lake City-Boise
market. 

   Figure III.28:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   San Diego, Calif., Market

   (See figure in printed
   edition.)

Note:  For the San Diego, Calif., market, the farm price is the
California mailbox price; the cooperative price is the Southern
California Class I price; the wholesale price is the price charged by
the commissary at the San Diego Naval Station; and the retail price
is the A.C.  Nielsen price for the San Diego market. 

   Figure III.29:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Seattle, Wash., Market

   (See figure in printed
   edition.)

Note:  For the Seattle, Wash., market, the farm price is the Pacific
Northwest mailbox price; the cooperative price is the announced
cooperative price for Seattle; the wholesale price is the price
charged by the commissary at the Everett Naval Station; and the
retail price is the A.C.  Nielsen price for the Seattle market. 

   Figure III.30:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Vermont Market

   (See figure in printed
   edition.)

Note:  For the Vermont market, the farm price is the New England
mailbox price; the cooperative price is the estimated cooperative
price (Boston announced cooperative price minus $.0516 per gallon);
the wholesale price is the price charged by the commissary at the
Hanscom Air Force Base; and the retail price is the price reported by
the state milk control agency for the Vermont market. 

   Figure III.31:  Farm,
   Cooperative, Wholesale, and
   Retail Prices for a Gallon of
   2-percent Fluid Milk for the
   Washington, D.C., Market

   (See figure in printed
   edition.)

Note:  For the Washington, D.C., market, the farm price is the Middle
Atlantic mailbox price; the cooperative price is the announced
cooperative price for Washington, D.C.; the wholesale price is the
price charged by the commissary at the Bolling Air Force Base; and
the retail price is the A.C.  Nielsen price for the Washington, D.C.,
market. 


RETAIL PRICING RELATIONSHIPS FOR
FOUR KINDS OF FLUID MILK IN
SELECTED MARKETS
========================================================== Appendix IV

This appendix provides information on the average retail price for
whole, 2-percent, 1- percent, and fat-free milk in 31 selected
markets for January 1996 through February 1998.  We found that retail
pricing relationships among the four kinds of milk varied
significantly in the markets we analyzed.  For example, in the
Seattle market from January 1996 through February 1998, the average
price for 2-percent milk was consistently lower than the average
price for whole, 1-percent, or fat-free milk.  On the other hand, for
this period in the Minneapolis market, the average retail price for
fat-free milk was consistently lower than the price of whole,
2-percent, or 1-percent milk.  In other markets, such as New York,
the lowest-priced milk shifted among 2-percent, 1-percent, and
fat-free milk over the same period.  Figures IV.1 through IV.31
provide information on the average retail price for each of the four
kinds of milk for the 31 markets for January 1996 through February
1998. 

   Figure IV.1:  Atlanta, Ga.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Atlanta
market. 

   Figure IV.2:  Augusta, Me.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the price reported by the state milk
control agency for the Augusta market. 

   Figure IV.3:  Bismarck, N.D.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the price reported by the state milk
control agency for the Bismarck market. 

   Figure IV.4:  Boston, Mass.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Boston
market which includes Rhode Island and parts of New Hampshire. 

   Figure IV.5:  Chicago, Ill.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Chicago
market. 

   Figure IV.6:  Cincinnati, Ohio,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Cincinnati
market. 

   Figure IV.7:  Dallas, Tex.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Dallas
market. 

   Figure IV.8:  Denver, Colo.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Denver
market. 

   Figure IV.9:  Houston, Tex.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Houston
market. 

   Figure IV.10:  Kansas City,
   Mo., Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Kansas
City market. 

   Figure IV.11:  Las Vegas, Nev.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the price reported by the state milk
control agency for the Las Vegas market. 

   Figure IV.12:  Louisville, Ky.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Louisville
market. 

   Figure IV.13:  Miami, Fla.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Miami
market. 

   Figure IV.14:  Milwaukee, Wis.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Milwaukee
market. 

   Figure IV.15:  Minneapolis,
   Minn., Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the
Minneapolis market. 

   Figure IV.16:  New Hampshire
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Boston
market which includes Rhode Island and parts of New Hampshire. 

   Figure IV.17:  New Haven,
   Conn., Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the
Hartford-New Haven market. 

   Figure IV.18:  New Orleans,
   La., Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the New
Orleans-Mobile market. 

   Figure IV.19:  New York, N.Y.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the New York
market. 

   Figure IV.20:  Orlando, Fla.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Orlando
market. 

   Figure IV.21:  Philadelphia,
   Pa., Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the
Philadelphia market. 

   Figure IV.22:  Phoenix, Ariz.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Phoenix
market. 

   Figure IV.23:  Raleigh, N.C.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the
Raleigh-Durham market. 

   Figure IV.24:  Rhode Island
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Boston
market which includes Rhode Island and parts of New Hampshire. 

   Figure IV.25:  Richmond, Va.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the
Richmond-Norfolk market. 

   Figure IV.26:  Sacramento,
   Calif., Market Retail Prices
   for Whole, 2-percent,
   1-percent, and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Sacramento
market. 

   Figure IV.27:  Salt Lake City,
   Utah, Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Salt Lake
City-Boise market. 

   Figure IV.28:  San Diego,
   Calif., Market Retail Prices
   for Whole, 2-percent,
   1-percent, and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the San Diego
market. 

   Figure IV.29:  Seattle, Wash.,
   Market Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the Seattle
market. 

   Figure IV.30:  Vermont Market
   Retail Prices for Whole,
   2-percent, 1-percent, and
   Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the price reported by the state milk
control agency for the Vermont market. 

   Figure IV.31:  Washington,
   D.C., Market Retail Prices for
   Whole, 2-percent, 1-percent,
   and Fat-free Milk

   (See figure in printed
   edition.)

Note:  The retail price is the A.C.  Nielsen price for the
Washington, D.C.  market. 


DATA ON THE AVERAGE MONTHLY
RETAIL, WHOLESALE-, COOPERATIVE-,
AND FARM-LEVEL PRICES FOR FOUR
KINDS OF FLUID MILK IN SELECTED
MARKETS
=========================================================== Appendix V

This appendix provides data for January 1996 through February 1998 on
the average monthly retail-, wholesale-, cooperative-, and farm-level
prices for a gallon of whole, 2-percent, 1-percent, and fat-free
milk, for 31 selected markets.  These data are presented in table V.1
through table V.31. 



                                                                                      Table V.1
                                                                       
                                                                         Atlanta, Ga., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole        $2.2  $2.2  $2.2  $2.2  $2.3  $2.4  $2.5  $2.5  $2.5  $2.5  $2.5  $2.6  $2.4  $2.6  $2.6  $2.6  $2.6  $2.6  $2.5  $2.5  $2.6  $2.5  $2.4  $2.2  $2.5  $2.5  $2.5  $2.55
                4     5     4     4     0     2     2     3     4     4     7     0     2     1     2     1     0     1     9     9     0     5     7     8     3     0     1
2%           2.25  2.26  2.26  2.25  2.32  2.44  2.52  2.53  2.54  2.54  2.58  2.63  $2.4  2.62  2.62  2.61  2.62  2.63  2.60  2.61  2.62  2.57  2.50  2.30  2.56  2.53  2.54  $2.57
                                                                                        3
1%           2.14  2.15  2.15  2.14  2.21  2.31  2.40  2.43  2.43  2.43  2.46  2.49  $2.3  2.50  2.51  2.51  2.52  2.51  2.46  2.50  2.52  2.45  2.42  2.27  2.47  2.44  2.45  $2.47
                                                                                        1
Fat-free     2.18  2.20  2.20  2.20  2.26  2.37  2.45  2.49  2.50  2.50  2.53  2.57  $2.3  2.55  2.56  2.55  2.55  2.57  2.54  2.57  2.57  2.51  2.48  2.31  2.54  2.52  2.54  $2.53
                                                                                        7

Wholesale
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole          \a    \a    \a    \a    \a    \a  2.07  2.07  2.22  2.22  2.27  2.27  $2.1  2.27  2.19  2.27  2.19  2.19  2.19  2.15  2.15  2.15  2.15  2.25  2.25  2.25  2.25  $2.21
                                                                                        9
2%             \a    \a    \a    \a    \a    \a  2.05  2.05  2.20  2.20  2.25  2.25  $2.1  2.25  2.17  2.25  2.17  2.17  2.17  2.13  2.13  2.13  2.13  2.23  2.23  2.23  2.23  $2.19
                                                                                        7
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a     \a
Fat-free       \a    \a    \a    \a    \a    \a  2.05  2.05  2.20  2.20  2.25  2.25  $2.1  2.25  2.17  2.25  2.17  2.17  2.17  2.13  2.13  2.13  2.13  2.23  2.23  2.23  2.23  $2.19
                                                                                        7
Cooperative  1.40  1.40  1.39  1.38  1.39  1.51  1.58  1.61  1.66  1.70  1.70  1.59  $1.5  1.44  1.42  1.42  1.41  1.41  1.32  1.26  1.28  1.29  1.41  1.47  1.47  1.48  1.51  $1.40
                                                                                        3
Mailbox      1.20  1.20  1.18  1.18  1.22  1.30  1.34  1.37  1.42  1.46  1.42  1.30  $1.3  1.19  1.18  1.18  1.16  1.15  1.10  1.05  1.07  1.10  1.22  1.27  1.27  1.28  1.29  $1.18
                                                                                        0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Atlanta, Ga., market, the farm price is the Southeast
mailbox price; the cooperative price is the announced cooperative
price for Atlanta; the wholesale price is the price charged by the
commissary at the Athens Naval Supply Corps School; and the retail
price is the A.C.  Nielsen price for the Atlanta market.  Prices may
not average due to rounding. 



                                                                                      Table V.2
                                                                       
                                                                         Augusta, Me., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                        Dealer Cost Class I and Mailbox Prices
                                                                       (Both unadjusted for butterfat content),
                                                                                  1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole        $2.1  $2.1  $2.1  $2.1  $2.1  $2.1  $2.2  $2.2  $2.3  $2.3  $2.4  $2.2  $2.2  $2.1  $2.1  $2.1  $2.1  $2.2  $2.1  $2.2  $2.3  $2.7  $2.4  $2.4  $2.4  $2.4  $2.4  $2.35
                9     9     7     6     7     8     4     7     2     6     4     9     5     7     8     8     9     0     8     8     7     9     7     7     7     7     7
2%           2.14  2.38  2.10  2.13  2.12  2.12  2.04  2.06  2.16  2.22  2.27    \a  $2.1  2.22  2.18  2.18  2.18  2.20  2.18  2.28  2.37  2.79  2.47  2.47  2.27  2.37  2.47  $2.33
                                                                                        6
1%           2.12  2.18  2.08  2.12  2.10  2.08  2.08  2.06  2.16  2.16  2.27    \a  $2.1  2.23  2.18  2.18  2.18  2.01  2.18  2.28  2.37  2.79  2.95  2.37  2.17  2.27  2.47  $2.33
                                                                                        3
Fat-free     2.09  2.17  2.06  2.11  2.09  2.05  1.93  1.84  1.98  2.08  2.12    \a  $2.0  2.25  2.18  2.18  2.19  2.20  2.09  2.32  2.37  2.79  2.47  2.37  2.07  2.27  2.47  $2.30
                                                                                        5

Wholesale
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole        1.89  2.02  2.02  2.02  2.02    \a    \a  2.03  2.03  2.07  2.11  2.00  $2.0  1.78  1.76  1.81  1.85  1.85  1.76  1.95  1.95  1.95  1.95  1.95  1.95  1.95  1.95  $1.89
                                                                                        2
2%           1.84  1.97  1.97  1.97  1.97    \a    \a  1.86  1.86  1.90  1.94  1.83  $1.9  1.61  1.59  1.64  1.68  1.68  1.59  1.78  1.78  1.78  1.78  1.78  1.78  1.78  1.78  $1.72
                                                                                        1
1%           1.81  1.94  1.94  1.94  1.94    \a    \a  1.72  1.72  1.76  1.80  1.69  $1.8  1.47  1.45  1.50  1.54  1.54  1.45  1.64  1.64  1.64  1.64  1.64  1.64  1.64  1.64  $1.58
                                                                                        3
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a  1.70  1.74  1.78  1.67  $1.7  1.45  1.43  1.48  1.52  1.52  1.43  1.62  1.62  1.62  1.62  1.62  1.62  1.62  1.62  $1.56
                                                                                        2
Dealer Cost  1.39  1.39  1.38  1.37  1.37  1.43  1.48  1.50  1.55  1.58  1.62  1.52  $1.4  1.33  1.31  1.35  1.39  1.39  1.30  1.46  1.49  1.49  1.48  1.48  1.48  1.48  1.48  $1.42
                                                                                        6
Mailbox      1.15  1.14  1.13  1.12  1.16  1.21  1.27  1.29  1.34  1.36  1.32  1.21  $1.2  1.12  1.09  1.13  1.12  1.10  1.03  1.09  1.12  1.15  1.21  1.25  1.24  1.23  1.22  $1.15
                                                                                        3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Augusta, Me., market, the farm price is the New
England mailbox price; the cooperative price is the Maine dealer
cost; the wholesale price is the price charged by the commissary at
the Brunswick Naval Air Station; and the retail price is the price
reported by the state milk control agency for the Augusta market. 
Prices may not average due to rounding. 



                                                                                      Table V.3
                                                                       
                                                                        Bismarck, N.D., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                       North Dakota Class I and Grade A Prices
                                                                       (Both unadjusted for butterfat content),
                                                                                  1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole          \a  $3.0  $3.0  $3.0  $3.0  $3.0  $3.1  $3.1  $3.1  $3.1  $3.3  $3.1  $3.1    \a  $3.1  $3.0    \a  $2.9  $3.0  $2.9  $2.8  $2.8  $3.0  $3.1  $2.9  $3.0  $3.1  $3.02
                      2     2     2     2     8     0     0     4     4     6     9     1           2     2           6     0     5     9     8     9     3     9     1     4
2%             \a  3.02  3.02  3.02  3.02  3.06  3.08  3.04  3.14  3.14  3.32  3.21  $3.1    \a  3.22  3.10  3.10  3.06  2.95  2.89  2.83  2.88  3.05  3.09  2.99  3.01  3.10  $3.02
                                                                                        0
1%             \a  3.04  3.04  3.04  3.04  3.10  3.11  3.07  3.14  3.14  3.32  3.29  $3.1    \a  3.18  3.06    \a  3.02  2.99  2.93  2.87  2.87  3.13  2.77  3.00  3.04  3.12  $3.00
                                                                                        2
Fat-free       \a  3.04  3.04  3.04  3.04  3.06  3.08  3.04  3.06  3.06  3.28  3.27  $3.0    \a  3.24  3.12    \a  3.06  2.89  2.85  2.79  2.88  3.05  3.07  2.90  3.04  3.10  $3.00
                                                                                        9

Wholesale
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole          \a    \a  2.33  2.33  2.33  2.43  2.43  2.43  2.49  2.38  2.48  2.48  $2.4  2.40  2.40  2.28    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  $2.36
                                                                                        1
2%             \a    \a  2.32  2.32  2.32  2.42  2.42  2.42  2.41  2.35  2.45  2.45  $2.3  2.37  2.37  2.23    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  $2.32
                                                                                        9
1%           2.34  2.36  2.39  2.32  2.32  2.42  2.42  2.42  2.41  2.49  2.59  2.59  $2.4  2.51  2.51  2.37    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  $2.46
                                                                                        2
Fat-free     2.37  2.28  2.43  2.36  2.36  2.45  2.45  2.45  2.37  2.40  2.50  2.50  $2.4  2.42  2.42  2.25    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  $2.36
                                                                                        1
N.D. Class   1.27  1.28  1.28  1.27  1.29  1.34  1.39  1.41  1.47  1.51  1.56  1.45  $1.3  1.38  1.38  1.31  1.30  1.31  1.21  1.15  1.17  1.18  1.27  1.33  1.33  1.34  1.36  $1.29
 I                                                                                      8
Grade A      1.11  1.10  1.09  1.12  1.14  1.15  1.20  1.25  1.31  1.28  1.15  1.09  $1.1  1.09  1.10  1.07  1.02  0.96  0.92  0.93  1.02  1.07  1.13  1.19  1.20  1.19  1.17  $1.08
                                                                                        7
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Bismarck, N.D., market, the farm price is based on
data collected by the National Agricultural Statistics Service on the
Grade A price paid to farmers in this area minus $.0602 per gallon
for hauling costs and other fees; the cooperative price is the North
Dakota State Order Class I price; the wholesale price is the price
charged by the commissary at the Minot Air Force Base; and the retail
price is the price reported by the state milk control agency for the
Bismarck market.  Prices may not average due to rounding. 



                                                                                     Table V.4
                                                                      
                                                                       Boston, Mass., Market Milk Prices Per
                                                                      Gallon--Retail and Wholesale Prices, and
                                                                         Announced Cooperative Class I and
                                                                        Mailbox Prices (Both unadjusted for
                                                                       butterfat content), 1996-February 1998

                                                 1996                                                                              1997-98
             ----------------------------------------------------------------------------  ----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.  Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----
Retail
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole        $2.3  $2.3  $2.2  $2.2  $2.2  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.4  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.4
                2     0     8     9     7     0     6     4     4     8     9     8     3     8     7     6     8     9     0     0     0     9     5     6     8     5     4     9
2%           2.22  2.21  2.20  2.22  2.17  2.22  2.27  2.25  2.20  2.24  2.23  2.27  $2.2  2.28  2.26  2.26  2.28  2.28  2.31  2.51  2.51  2.46  2.44  2.47  2.45  2.40  2.44  $2.3
                                                                                        2                                                                                         8
1%           2.15  2.19  2.12  2.17  2.18  2.17  2.19  2.16  2.17  2.16  2.21  2.22  $2.1  2.20  2.18  2.19  2.18  2.21  2.19  2.40  2.39  2.38  2.35  2.37  2.36  2.33  2.36  $2.2
                                                                                        7                                                                                         9
Fat-free     2.16  2.15  2.16  2.18  2.15  2.20  2.23  2.19  2.19  2.19  2.21  2.22  $2.1  2.19  2.19  2.18  2.22  2.22  2.22  2.41  2.41  2.37  2.36  2.36  2.36  2.30  2.31  $2.2
                                                                                        9                                                                                         9

Wholesale
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Whole          \a    \a    \a  1.82  1.81  1.81  1.81  1.94  1.94  1.94  1.94  1.94  $1.8  1.69  1.67  1.72  1.76  1.76  1.67  1.86  1.86  1.86  1.86  1.86  1.86  1.86  1.86  $1.8
                                                                                        8                                                                                         0
2%             \a    \a    \a  1.76  1.75  1.75  1.75  1.99  1.99  1.99  1.99  1.99  $1.8  1.74  1.72  1.77  1.81  1.81  1.72  1.91  1.91  1.91  1.91  1.91  1.91  1.91  1.91  $1.8
                                                                                        8                                                                                         5
1%             \a    \a    \a  1.76  1.75  1.75  1.75  1.98  1.98  1.98  1.98  1.98  $1.8  1.73  1.71  1.76  1.80  1.80  1.71  1.90  1.90  1.90  1.90  1.90  1.90  1.90  1.90  $1.8
                                                                                        8                                                                                         4
Fat-free       \a    \a    \a  1.72  1.71  1.71  1.71  1.93  1.93  1.93  1.93  1.93  $1.8  1.68  1.66  1.71  1.75  1.75  1.66  1.85  1.85  1.85  1.85  1.85  1.85  1.85  1.85  $1.7
                                                                                        3                                                                                         9
Cooperative  1.45  1.45  1.44  1.42  1.43  1.47  1.53  1.54  1.59  1.63  1.66  1.59  $1.5  1.37  1.35  1.40  1.45  1.45  1.36  1.55  1.54  1.51  1.51  1.51  1.51  1.51  1.51  $1.4
                                                                                        2                                                                                         7
Mailbox      1.15  1.14  1.13  1.12  1.16  1.21  1.27  1.29  1.34  1.36  1.32  1.21  $1.2  1.12  1.09  1.13  1.12  1.10  1.03  1.09  1.12  1.15  1.21  1.25  1.24  1.23  1.22  $1.1
                                                                                        3                                                                                         5
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Boston, Mass., market, the farm price is the New
England mailbox price; the cooperative price is the announced
cooperative price for Boston; the wholesale price is the price
charged by the commissary at the Hanscom Air Force Base; and the
retail price is the A.C.  Nielsen price for the Boston market which
includes Rhode Island and parts of New Hampshire.  Prices may not
average due to rounding. 



                                                                                      Table V.5
                                                                       
                                                                        Chicago, Ill., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.3  $2.3  $2.4  $2.3  $2.3  $2.4  $2.5  $2.5  $2.5  $2.5  $2.6  $2.5  $2.4  $2.5  $2.4  $2.5  $2.3  $2.4  $2.4  $2.4  $2.3  $2.4  $2.4  $2.5  $2.4  $2.5  $2.4  $2.47
                8     2     0     5     4     9     8     1     2     8     3     8     7     5     9     6     8     5     3     1     8     4     3     2     8     4     9
2%           2.19  2.13  2.01  2.09  2.13  2.16  2.26  2.28  2.24  2.31  2.33  2.36  $2.2  2.35  2.19  2.28  2.22  2.20  2.32  2.20  2.25  2.23  2.30  2.31  2.39  2.40  2.37  $2.29
                                                                                        1
1%           2.17  2.17  2.11  2.09  2.16  2.21  2.26  2.32  2.29  2.34  2.42  2.42  $2.2  2.32  2.27  2.28  2.14  2.24  2.24  2.18  2.15  2.17  2.21  2.27  2.29  2.29  2.31  $2.24
                                                                                        5
Fat-free     2.22  2.19  2.12  2.21  2.21  2.32  2.39  2.42  2.40  2.44  2.48  2.39  $2.3  2.41  2.34  2.40  2.33  2.24  2.37  2.32  2.34  2.35  2.43  2.43  2.38  2.47  2.46  $2.38
                                                                                        2
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a    \a  1.93  2.00  2.07  2.07  $2.0  2.07  2.07  1.81  1.83  1.87  1.87  1.80  1.75  1.75  1.75  1.86  1.86  1.93    \a  $1.86
                                                                                        2
2%             \a    \a    \a    \a    \a    \a    \a    \a  1.83  1.87  1.94  1.94  $1.9  1.94  1.94  1.79  1.80  1.85  1.85  1.79  1.74  1.74  1.74  1.86  1.86  1.93    \a  $1.83
                                                                                        0
1%             \a    \a    \a    \a    \a    \a    \a    \a  1.82  1.85  1.92  1.92  $1.8  1.92  1.92  1.84  1.85  1.90  1.90  1.86  1.81  1.81  1.81  1.94  1.94  2.00    \a  $1.88
                                                                                        8
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a  1.82  1.83  1.90  1.90  $1.8  1.90  1.90  1.89  1.90  1.94  1.94  1.92  1.87  1.87  1.87  2.00  2.00  2.02    \a  $1.93
                                                                                        6
Cooperative  1.37  1.37  1.35  1.34  1.35  1.39  1.45  1.46  1.52  1.59  1.62  1.54  $1.4  1.33  1.30  1.32  1.38  1.37  1.29  1.23  1.23  1.23  1.34  1.41  1.41  1.41  1.43  $1.33
                                                                                        5
Mailbox      1.18  1.16  1.18  1.19  1.26  1.27  1.32  1.37  1.42  1.35  1.18  1.12  $1.2  1.14  1.17  1.17  1.09  1.04  1.01  1.01  1.11  1.16  1.21  1.27  1.27  1.25  1.26  $1.15
                                                                                        5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Chicago, Ill., market, the farm price is the Chicago
Regional mailbox price; the cooperative price is the announced
cooperative price for Chicago; the wholesale price is the price
charged by the commissary at the Great Lakes Naval Training Center;
and the retail price is the A.C.  Nielsen price for the Chicago
market.  Prices may not average due to rounding. 



                                                                                      Table V.6
                                                                       
                                                                       Cincinnati, Ohio, Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.2  $2.3  $2.2  $2.4  $2.3  $2.3  $2.4  $2.4  $2.4  $2.3  $2.3  $2.4  $2.3  $2.4  $2.3  $1.9  $1.5  $1.4  $1.4  $1.3  $1.1  $1.3  $1.4  $1.5  $1.5  $1.5  $1.4  $1.62
                2     7     4     1     2     9     3     2     5     4     7     0     6     5     9     9     7     4     3     5     5     5     8     1     2     2     7
2%           2.20  2.33  2.20  2.37  2.27  2.35  2.41  2.39  2.40  2.30  2.33  2.37  $2.3  2.41  2.37  1.99  1.55  1.42  1.43  1.30  1.17  1.38  1.50  1.51  1.51  1.51  1.46  $1.61
                                                                                        3
1%           2.24  2.34  2.24  2.38  2.27  2.35  2.44  2.43  2.41  2.27  2.32  2.34  $2.3  2.40  2.37  1.97  1.54  1.36  1.37  1.27  1.21  1.37  1.50  1.54  1.53  1.51  1.47  $1.60
                                                                                        4
Fat-free     2.22  2.33  2.22  2.36  2.24  2.35  2.43  2.42  2.40  2.27  2.34  2.37  $2.3  2.42  2.39  1.95  1.51  1.35  1.33  1.23  1.20  1.35  1.48  1.50  1.50  1.49  1.43  $1.58
                                                                                        3
Wholesale
Whole        1.89  2.09  1.98  1.98    \a    \a  2.04  2.10  2.10  2.10  2.10  2.10  $2.0  1.90  1.90  1.90  1.90  1.90  1.95  1.95  1.95  1.95  1.95  2.05  2.10  2.15  2.15  $1.98
                                                                                        5
2%           1.75  1.99  1.90  1.90    \a    \a  1.96  1.96  1.96  1.96  1.96  1.99  $1.9  1.79  1.79  1.79  1.79  1.79  1.79  1.79  1.79  1.79  1.79  1.89  1.89  1.89  1.96  $1.82
                                                                                        3
1%           1.69  1.95  1.81  1.81    \a    \a  1.87  1.87  1.87  1.87  1.87  1.97  $1.8  1.77  1.77  1.77  1.77  1.77  1.79  1.79  1.79  1.79  1.79  1.89  1.89  1.89  1.90  $1.81
                                                                                        6
Fat-free     1.67  1.98  1.79  1.79    \a    \a  1.85  1.85  1.85  1.85  1.85  1.95  $1.8  1.75  1.75  1.75  1.75  1.75  1.75  1.75  1.75  1.75  1.75  1.85  1.85  1.85  1.86  $1.78
                                                                                        4
Cooperative  1.34  1.34  1.33  1.32  1.33  1.40  1.46  1.47  1.53  1.57  1.61  1.50  $1.4  1.31  1.29  1.34  1.37  1.36  1.30  1.23  1.27  1.28  1.38  1.44  1.45  1.45  1.47  $1.35
                                                                                        3
Mailbox      1.18  1.17  1.16  1.16  1.18  1.21  1.27  1.29  1.35  1.39  1.37  1.27  $1.2  1.12  1.10  1.14  1.15  1.10  1.04  0.99  1.02  1.05  1.18  1.26  1.25  1.24  1.25  $1.14
                                                                                        5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Cincinnati, Ohio, market, the farm price is the Ohio
Valley mailbox price; the cooperative price is the announced
cooperative price for Cincinnati; the wholesale price is the price
charged by the commissary at the Wright Patterson Air Force Base; and
the retail price is the A.C.  Nielsen price for the Cincinnati
market.  Prices may not average due to rounding. 



                                                                                      Table V.7
                                                                       
                                                                         Dallas, Tex., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.2  $2.2  $2.2  $2.2  $2.2  $2.3  $2.3  $2.2  $2.3  $2.3  $2.4  $2.4  $2.3  $2.4  $2.3  $2.3  $2.3  $2.3  $2.3  $2.1  $2.1  $2.2  $2.4  $2.4  $2.5  $2.4  $2.5  $2.38
                1     2     1     1     4     6     6     7     8     7     0     3     0     1     5     4     6     8     4     9     6     6     7     6     1     9     4
2%           2.22  2.23  2.23  2.21  2.24  2.32  2.33  2.21  2.35  2.32  2.39  2.41  $2.2  2.40  2.35  2.32  2.35  2.39  2.36  2.15  2.13  2.27  2.46  2.46  2.50  2.44  2.54  $2.36
                                                                                        9
1%           2.13  2.16  2.15  2.13  2.17  2.30  2.27  2.18  2.27  2.24  2.32  2.34  $2.2  2.32  2.33  2.29  2.32  2.34  2.32  2.12  2.14  2.22  2.40  2.43  2.45  2.43  2.48  $2.33
                                                                                        2
Fat-free     2.23  2.22  2.21  2.19  2.21  2.37  2.34  2.19  2.34  2.29  2.37  2.39  $2.2  2.36  2.39  2.31  2.40  2.39  2.37  2.14  2.13  2.27  2.46  2.42  2.46  2.46  2.51  $2.36
                                                                                        8
Wholesale
Whole          \a  2.03  2.03  2.09  2.09  2.23  2.23  2.19  2.19  2.19  2.19  2.19  $2.1  2.19  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.34  2.40  2.40  2.40  2.40  $2.25
                                                                                        5
2%             \a  1.99  1.99  2.09  2.09  2.23  2.23  2.19  2.19  2.19  2.19  2.19  $2.1  2.19  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.34  2.40  2.40  2.40  2.40  $2.25
                                                                                        4
1%             \a    \a  1.85  1.99  1.99  2.13  2.13  2.19  2.19  2.19  2.19  2.19  $2.1  2.19  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.34  2.40  2.40  2.40  2.40  $2.25
                                                                                        0
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  2.19  $2.1  2.19  2.19  2.19  2.19  2.19  2.19  2.19  2.19  2.19  2.36  2.40  2.40  2.40  2.40  $2.26
                                                                                        9
Cooperative  1.40  1.40  1.38  1.37  1.38  1.50  1.51  1.52  1.56  1.60  1.64  1.53  $1.4  1.35  1.32  1.35  1.36  1.37  1.28  1.21  1.22  1.23  1.40  1.45  1.42  1.41  1.44  $1.34
                                                                                        8
Mailbox      1.14  1.12  1.10  1.12  1.16  1.20  1.28  1.31  1.35  1.36  1.31  1.19  $1.2  1.12  1.11  1.11  1.09  1.06  1.01  0.99  1.02  1.04  1.17  1.25  1.25  1.26  1.24  $1.12
                                                                                        2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Dallas, Tex., market, the farm price is the Texas
mailbox price; the cooperative price is the announced cooperative
price for Dallas; the wholesale price is the price charged by the
commissary at the Kelly Air Force Base; and the retail price is the
A.C.  Nielsen price for the Dallas market.  Prices may not average
due to rounding. 



                                                                                      Table V.8
                                                                       
                                                                        Denver, Colo., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.9  $2.8  $2.9  $2.8  $2.8  $2.8  $2.7  $2.5  $2.5  $2.5  $2.6  $2.7  $2.7  $2.7  $2.8  $2.8  $2.7  $2.8  $2.8  $2.8  $2.8  $2.8  $2.8  $2.9  $2.9  $2.9  $2.9  $2.85
                2     8     0     8     9     5     8     7     8     8     9     4     7     9     1     2     9     2     2     1     1     2     8     1     4     3     2
2%           2.47  2.42  2.61  2.60  2.66  2.35  2.41  2.34  2.34  2.35  2.53  2.54  $2.4  2.61  2.66  2.66  2.61  2.67  2.66  2.67  2.62  2.67  2.73  2.75  2.79  2.62  2.65  $2.67
                                                                                        7
1%           2.47  2.52  2.56  2.55  2.54  2.57  2.46  2.44  2.37  2.39  2.52  2.56  $2.5  2.61  2.65  2.64  2.56  2.64  2.64  2.67  2.63  2.64  2.68  2.72  2.76  2.72  2.67  $2.66
                                                                                        0
Fat-free     2.60  2.67  2.70  2.68  2.71  2.62  2.58  2.45  2.42  2.43  2.52  2.58  $2.5  2.62  2.65  2.64  2.57  2.63  2.64  2.61  2.62  2.65  2.72  2.73  2.77  2.74  2.72  $2.67
                                                                                        8
Wholesale
Whole        1.92  1.92  1.85  1.85  1.85  1.85  1.85  1.92  1.98  2.00  2.08  2.00  $1.9  1.83  1.79  1.84  1.90  1.89  1.81  1.74  1.74  1.75  1.86  1.93  1.93  1.93  1.96  $1.85
                                                                                        2
2%           1.84  1.84  1.80  1.80  1.80  1.80  1.80  1.85  1.88  1.90  1.98  1.91  $1.8  1.76  1.70  1.72  1.76  1.73  1.67  1.60  1.58  1.60  1.70  1.76  1.71  1.70  1.79  $1.70
                                                                                        5
1%           1.77  1.77  1.77  1.77  1.77  1.77  1.77  1.80  1.79  1.80  1.89  1.85  $1.7  1.80  1.69  1.65  1.65  1.62  1.57  1.50  1.50  1.52  1.60  1.66  1.56  1.54  1.67  $1.61
                                                                                        9
Fat-free     1.71  1.71  1.71  1.71  1.71  1.71  1.71  1.74  1.74  1.78  1.84  1.86  $1.7  1.84  1.67  1.67  1.66  1.61  1.57  1.52  1.46  1.48  1.60  1.66  1.52  1.50  1.66  $1.60
                                                                                        4
Cooperative  1.40  1.41  1.39  1.38  1.39  1.42  1.48  1.44  1.49  1.53  1.57  1.46  $1.4  1.25  1.22  1.27  1.32  1.32  1.23  1.17  1.17  1.18  1.29  1.35  1.35  1.36  1.39  $1.28
                                                                                        5
Mailbox      1.15  1.13  1.12  1.14  1.17  1.19  1.24  1.25  1.33  1.34  1.23  1.13  $1.2  1.05  1.05  1.08  1.05  1.01  0.96  0.96  1.01  1.05  1.13  1.15  1.16  1.17  1.20  $1.07
                                                                                        0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  For the Denver, Colo., market, the farm price is the Eastern
Colorado mailbox price; the cooperative price is the announced
cooperative price for Denver; the wholesale price is the price
charged by the commissary at the Fitzsimons U.S.  Army Garrison; and
the retail price is the A.C.  Nielsen price for the Denver market. 
Prices may not average due to rounding. 



                                                                                      Table V.9
                                                                       
                                                                        Houston, Tex., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.1  $2.1  $2.1  $2.1  $2.0  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.1  $2.1  $2.1  $2.1  $2.1  $2.1  $2.2  $2.2  $2.2  $2.2  $2.2  $2.20
                7     7     6     1     9     2     3     3     2     3     7     9     0     6     2     0     8     6     4     5     4     6     4     9     5     4     2
2%           2.15  2.17  2.15  2.10  2.06  2.21  2.20  2.20  2.20  2.21  2.25  2.29  $2.1  2.24  2.19  2.18  2.16  2.13  2.12  2.11  2.09  2.13  2.19  2.24  2.19  2.19  2.15  $2.17
                                                                                        8
1%           2.10  2.08  2.10  2.03  2.01  2.13  2.11  2.12  2.11  2.14  2.17  2.19  $2.1  2.18  2.14  2.13  2.11  2.09  2.10  2.10  2.08  2.11  2.18  2.23  2.18  2.18  2.13  $2.14
                                                                                        1
Fat-free     2.15  2.16  2.15  2.10  2.05  2.21  2.19  2.20  2.19  2.21  2.25  2.29  $2.1  2.25  2.20  2.19  2.15  2.12  2.11  2.10  2.07  2.13  2.20  2.27  2.19  2.19  2.13  $2.16
                                                                                        8
Wholesale
Whole          \a  2.03  2.03  2.09  2.09  2.23  2.23  2.19  2.19  2.19  2.19  2.19  $2.1  2.19  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.34  2.40  2.40  2.40  2.40  $2.25
                                                                                        5
2%             \a  1.99  1.99  2.09  2.09  2.23  2.23  2.19  2.19  2.19  2.19  2.19  $2.1  2.19  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.34  2.40  2.40  2.40  2.40  $2.25
                                                                                        4
1%             \a    \a  1.85  1.99  1.99  2.13  2.13  2.19  2.19  2.19  2.19  2.19  $2.1  2.19  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.17  2.34  2.40  2.40  2.40  2.40  $2.25
                                                                                        0
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  2.19  $2.1  2.19  2.19  2.19  2.19  2.19  2.19  2.19  2.19  2.19  2.36  2.40  2.40  2.40  2.40  $2.26
                                                                                        9
Cooperative  1.44  1.45  1.43  1.42  1.42  1.54  1.56  1.57  1.61  1.65  1.69  1.58  $1.5  1.39  1.37  1.39  1.41  1.41  1.32  1.26  1.26  1.27  1.44  1.50  1.46  1.45  1.48  $1.39
                                                                                        3
Mailbox      1.14  1.12  1.10  1.12  1.16  1.20  1.28  1.31  1.35  1.36  1.31  1.19  $1.2  1.12  1.11  1.11  1.09  1.06  1.01  0.99  1.02  1.04  1.17  1.25  1.25  1.26  1.24  $1.12
                                                                                        2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Houston, Tex., market, the farm price is the Texas
mailbox price; the cooperative price is the announced cooperative
price for Houston; the wholesale price is the price charged by the
commissary at the Kelly Air Force Base; and the retail price is the
A.C.  Nielsen price for the Houston market.  Prices may not average
due to rounding. 



                                                                                      Table V.10
                                                                       
                                                                       Kansas City, Mo., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                       Announced Cooperative Class I and Blend
                                                                        Prices (Both unadjusted for butterfat
                                                                             content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.6  $2.6  $2.7  $2.7  $2.8  $2.8  $2.6  $2.8  $2.7  $2.7  $2.7  $2.7  $2.6  $2.6  $2.5  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.67
                1     1     0     2     1     5     2     4     1     8     1     2     2     0     1     0     0     0     7     1     7     0     3     5     6     6     6
2%           2.46  2.47  2.46  2.47  2.47  2.50  2.57  2.59  2.66  2.73  2.76  2.78  $2.5  2.75  2.69  2.67  2.67  2.67  2.63  2.58  2.53  2.54  2.56  2.59  2.62  2.62  2.62  $2.62
                                                                                        8
1%           2.44  2.45  2.45  2.45  2.45  2.50  2.58  2.56  2.64  2.71  2.74  2.77  $2.5  2.73  2.67  2.65  2.64  2.65  2.60  2.56  2.54  2.52  2.55  2.60  2.61  2.62  2.62  $2.61
                                                                                        6
Fat-free     2.38  2.39  2.40  2.41  2.41  2.43  2.49  2.52  2.57  2.62  2.65  2.71  $2.5  2.67  2.60  2.60  2.58  2.58  2.54  2.50  2.47  2.46  2.50  2.53  2.56  2.56  2.57  $2.55
                                                                                        0
Wholesale
Whole          \a    \a    \a    \a  1.96  1.96  1.96  2.00  2.07  2.07  2.07  2.07  $2.0  2.07  2.07  2.07  2.07  2.07  2.07  1.95  1.95  1.98  1.98  1.98  1.98  1.98  1.98  $2.01
                                                                                        2
2%             \a    \a    \a    \a  1.89  1.93  1.93  1.93  2.00  2.00  2.00  2.00  $1.9  2.05  2.05  2.05  2.05  2.05  2.05  1.93  1.93  1.93  1.93  1.93  1.93  1.93  1.93  $1.98
                                                                                        6
1%             \a    \a    \a    \a  1.70  1.92  1.92  1.92  1.99  1.99  1.99  1.99  $1.9  2.04  2.04  2.04  2.04  2.04  2.04  1.92  1.92  1.92  1.92  1.92  1.92  1.92  1.92  $1.97
                                                                                        3
Fat-free       \a    \a    \a    \a  1.85  1.90  1.90  1.90  1.97  1.97  1.97  1.97  $1.9  2.03  2.03  2.03  2.03  2.03  2.03  1.91  1.91  1.91  1.91  1.91  1.91  1.91  1.91  $1.96
                                                                                        3
Cooperative  1.32  1.32  1.34  1.33  1.35  1.39  1.44  1.46  1.51  1.54  1.59  1.49  $1.4  1.32  1.29  1.32  1.36  1.36  1.27  1.21  1.23  1.23  1.33  1.39  1.39  1.39  1.42  $1.32
                                                                                        2
K.C. Blend   1.18  1.18  1.17  1.17  1.18  1.18  1.23  1.27  1.32  1.37  1.33  1.27  $1.2  1.11  1.07  1.12  1.15  1.16  1.04  1.01  1.02  1.02  1.14  1.19  1.21  1.21  1.23  $1.12
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Kansas City, Mo., market, the farm price is the
Greater Kansas City Blend price minus $.0602 per gallon for hauling
costs and other fees; the cooperative price is the announced
cooperative price for Kansas City; the wholesale price is the price
charged by the commissary at Fort Leavenworth; and the retail price
is the A.C.  Nielsen price for the Kansas City market.  Prices may
not average due to rounding. 



                                                                                      Table V.11
                                                                       
                                                                       Las Vegas, Nev., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole          \a  $2.7  $2.7  $2.7  $2.7  $2.8  $2.8  $2.8  $2.8  $3.0  $2.9  $2.8  $2.8  $2.8  $2.7  $2.7  $2.7  $2.7  $2.6  $2.4  $2.4  $2.6  $2.8  $2.7  $2.8  $2.8  $2.7  $2.72
                      9     8     8     8     0     1     7     7     1     1     5     4     6     6     1     9     9     8     3     3     5     1     7     3     3     9
2%             \a  2.77  2.77  2.78  2.77  2.81  2.82  2.86  2.86  3.02  2.89  2.85  $2.8  2.85  2.73  2.71  2.71  2.76  2.77  2.44  2.44  2.69  2.77  2.77  2.84  2.84  2.79  $2.72
                                                                                        4
1%             \a  2.83  2.83  2.82  2.90  2.91  2.85  2.88  2.88  3.00  2.99  2.96  $2.9  2.98  2.86  2.85  2.85  2.81  2.63  2.76  2.76  2.75  2.89  2.95  2.97  2.97  2.79  $2.84
                                                                                        0
Fat-free       \a  2.57  2.59  2.59  2.65  2.68  2.68  2.68  2.68  2.79  2.67  2.62  $2.6  2.69  2.55  2.52  2.61  2.63  2.56  2.91  2.91  2.45  2.61  2.52  2.62  2.62  2.69  $2.64
                                                                                        5
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a    \a    \a  2.04  2.12    \a  $2.0    \a    \a    \a    \a    \a    \a    \a    \a    \a  2.17  2.23  2.23  2.23  2.28  $2.23
                                                                                        8
2%             \a    \a    \a    \a    \a    \a    \a    \a    \a  1.92  2.00    \a  $1.9    \a    \a    \a    \a    \a    \a    \a    \a    \a  2.03  2.03  2.03  2.03  2.16  $2.06
                                                                                        6
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a  1.83  1.91    \a  $1.8    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.96  2.02  2.02  2.02  2.07  $2.01
                                                                                        7
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a  1.77  1.84    \a  $1.8    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.89  1.95  1.95  1.95  1.95  $1.94
                                                                                        1
Cooperative  1.26  1.26  1.25  1.23  1.25  1.28  1.33  1.35  1.40  1.44  1.47  1.37  $1.3  1.15  1.13  1.18  1.22  1.22  1.13  1.07  1.07  1.08  1.19  1.25  1.25  1.26  1.29  $1.18
                                                                                        2
Mailbox      1.09  1.08  1.08  1.08  1.12  1.13  1.16  1.23  1.28  1.25  1.12  1.06  $1.1  1.00  1.02  1.04  0.99  0.94  0.91  0.91  0.97  1.02  1.07  1.11  1.12  1.08  1.11  $1.02
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Las Vegas, Nev., market, the farm price is the Great
Basin mailbox price; the cooperative price is the estimated
cooperative price (Salt Lake City cooperative price minus $.0258 per
gallon); the wholesale price is the price charged by the commissary
at the Nellis Air Force Base; and the retail price is the price
reported by the state milk control agency for the Las Vegas market. 
Prices may not average due to rounding. 



                                                                                     Table V.12
                                                                      
                                                                      Louisville, Ky., Market Milk Prices Per
                                                                      Gallon--Retail and Wholesale Prices, and
                                                                         Announced Cooperative Class I and
                                                                        Mailbox Prices (Both unadjusted for
                                                                       butterfat content), 1996-February 1998

                                                 1996                                                                              1997-98
             ----------------------------------------------------------------------------  ----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.  Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----
Retail
Whole        $2.1  $2.1  $2.1  $2.1  $2.1  $2.2  $2.3  $2.3  $2.3  $2.3  $2.4  $2.4  $2.2  $2.4  $2.4  $2.4  $2.4  $2.3  $2.3  $2.2  $2.3  $2.2  $2.1  $2.0  $2.1  $2.1  $2.1  $2.2
                8     9     7     7     8     4     3     5     8     7     1     7     9     7     5     2     1     8     1     8     0     2     3     6     0     6     9     8
2%           2.12  2.12  2.08  2.09  2.09  2.15  2.21  2.23  2.27  2.30  2.36  2.42  $2.2  2.42  2.39  2.37  2.35  2.32  2.23  2.20  2.21  2.11  2.05  1.96  2.00  2.07  2.08  $2.2
                                                                                        0                                                                                         0
1%           2.17  2.18  2.16  2.16  2.16  2.21  2.31  2.32  2.35  2.35  2.42  2.49  $2.2  2.49  2.45  2.40  2.37  2.36  2.25  2.21  2.22  2.12  2.01  1.89  1.95  2.04  2.08  $2.2
                                                                                        7                                                                                         0
Fat-free     2.13  2.14  2.11  2.11  2.11  2.17  2.26  2.28  2.30  2.31  2.38  2.46  $2.2  2.47  2.43  2.38  2.34  2.32  2.22  2.18  2.17  2.08  1.98  1.87  1.91  2.02  2.05  $2.1
                                                                                        3                                                                                         7
Wholesale
Whole        1.89  1.89  1.89  1.89  1.91  1.93  1.99  1.99  1.99  2.06  2.06  2.06  $1.9  2.06  1.98  1.98  1.98  1.99  1.94  1.94  1.89    \a    \a    \a    \a    \a    \a  $1.9
                                                                                        6                                                                                         7
2%           1.89  1.89  1.89  1.89  1.91  1.93  1.99  1.99  1.99  2.04  2.04  2.04  $1.9  2.04  1.94  1.94  1.94  1.99  1.94  1.94  1.89    \a    \a    \a    \a    \a    \a  $1.9
                                                                                        6                                                                                         5
1%           1.89  1.89  1.89  1.89  1.91  1.93  1.99  1.99  1.99  2.02  2.02  2.02  $1.9  2.02  1.92  1.92  1.92  1.99  1.94  1.94  1.89    \a    \a    \a    \a    \a    \a  $1.9
                                                                                        5                                                                                         4
Fat-free     1.89  1.89  1.89  1.89  1.92  1.93  1.99  1.99  1.99  2.01  2.01  2.01  $1.9  2.01  1.94  1.94  1.94  1.99  1.94  1.94  1.89    \a    \a    \a    \a    \a    \a  $1.9
                                                                                        5                                                                                         5
Cooperative  1.32  1.33  1.32  1.31  1.32  1.48  1.54  1.47  1.51  1.55  1.58  1.47  $1.4  1.29  1.26  1.32  1.36  1.36  1.27  1.18  1.19  1.20  1.30  1.36  1.36  1.37  1.40  $1.3
                                                                                        3                                                                                         0
Mailbox      1.18  1.18  1.17  1.15  1.18  1.24  1.31  1.32  1.37  1.42  1.42  1.31  $1.2  1.14  1.13  1.17  1.15  1.16  1.09  1.03  1.04  1.07  1.18  1.25  1.24  1.26  1.29  $1.1
                                                                                        7                                                                                         6
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Louisville, Ky., market, the farm price is the
Louisville, Lexington, and Evansville mailbox price; the cooperative
price is the announced cooperative price for Louisville; the
wholesale price is the price charged by the commissary at Fort Knox;
and the retail price is the A.C.  Nielsen price for the Louisville
market.  Prices may not average due to rounding. 



                                                                                      Table V.13
                                                                       
                                                                         Miami, Fla., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.8  $2.8  $2.8  $2.8  $2.8  $3.0  $3.1  $3.0  $3.0  $3.0  $3.0  $3.1  $3.0  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $3.0  $3.0  $2.9  $2.9  $2.95
                7     8     7     8     8     8     1     6     6     9     7     1     0     6     5     7     6     3     1     1     2     1     8     1     0     9     9
2%           2.90  2.92  2.91  2.92  2.93  3.13  3.15  3.10  3.09  3.14  3.15  3.15  $3.0  3.02  2.98  2.99  2.96  2.94  2.92  2.92  2.92  2.93  3.01  3.02  3.02  3.02  3.01  $2.98
                                                                                        4
1%           2.73  2.74  2.74  2.74  2.74  2.94  2.96  2.96  2.97  3.02  3.03  3.03  $2.8  2.89  2.85  2.85  2.81  2.80  2.78  2.79  2.78  2.79  2.87  2.88  2.87  2.88  2.87  $2.84
                                                                                        8
Fat-free     2.73  2.74  2.75  2.75  2.76  2.96  2.99  2.98  2.97  3.02  3.03  3.03  $2.8  2.89  2.84  2.86  2.82  2.81  2.80  2.80  2.80  2.81  2.88  2.89  2.89  2.89  2.88  $2.85
                                                                                        9
Wholesale
Whole        2.45  2.45  2.45  2.45  2.45  2.45  2.45  2.51  2.51  2.51  2.56  2.56  $2.4  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  $2.56
                                                                                        8
2%           2.45  2.45  2.45  2.45  2.45  2.45  2.45  2.51  2.51  2.51  2.56  2.56  $2.4  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  2.56  $2.56
                                                                                        8
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a     \a
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a     \a
Cooperative  1.60  1.60  1.58  1.57  1.58  1.70  1.76  1.82  1.86  1.90  1.90  1.83  $1.7  1.66  1.66  1.63  1.63  1.60  1.60  1.52  1.52  1.56  1.65  1.71  1.71  1.68  1.71  $1.63
                                                                                        2
Mailbox      1.37  1.37  1.35  1.34  1.36  1.46  1.53  1.60  1.62  1.66  1.69  1.58  $1.4  1.38  1.37  1.34  1.33  1.33  1.31  1.29  1.29  1.35  1.44  1.49  1.48  1.47  1.45  $1.38
                                                                                        9
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Product not carried by the commissary surveyed. 

Note:  For the Miami, Fla., market, the farm price is the Florida
mailbox price; the cooperative price is the announced cooperative
price for Miami; the wholesale price is the price charged by the
commissary at the Key West Naval Air Station; and the retail price is
the A.C.  Nielsen price for the Miami market.  Prices may not average
due to rounding. 



                                                                                      Table V.14
                                                                       
                                                                       Milwaukee, Wis., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.2  $2.3  $2.3  $2.3  $2.5  $2.5  $2.6  $2.6  $2.5  $2.4  $2.4  $2.4  $2.4  $2.4  $2.4  $2.3  $2.3  $2.4  $2.4  $2.4  $2.3  $2.3  $2.4  $2.4  $2.4  $2.5  $2.6  $2.44
                1     3     4     1     7     8     2     0     3     4     7     6     6     2     0     9     8     5     3     0     3     7     3     6     9     7     3
2%           2.00  2.11  2.17  2.07  2.28  2.23  2.26  2.27  2.28  2.21  2.27  2.27  $2.2  2.13  2.17  2.12  2.11  2.16  2.18  2.15  2.03  2.06  2.01  2.22  2.22  2.25  2.25  $2.15
                                                                                        0
1%           1.97  2.11  2.18  2.06  2.33  2.22  2.27  2.30  2.33  2.26  2.28  2.29  $2.2  2.14  2.19  2.12  2.15  2.19  2.23  2.18  2.03  2.05  2.03  2.24  2.21  2.21  2.22  $2.16
                                                                                        2
Fat-free     2.06  2.11  2.17  2.04  2.26  2.20  2.26  2.23  2.26  2.20  2.28  2.25  $2.1  2.12  2.15  2.12  2.13  2.21  2.21  2.18  2.05  2.09  2.04  2.17  2.16  2.18  2.19  $2.14
                                                                                        9
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a    \a  1.93  2.00  2.07  2.07  $2.0  2.07  2.07  1.81  1.83  1.87  1.87  1.80  1.75  1.75  1.75  1.86  1.86  1.93    \a  $1.86
                                                                                        2
2%             \a    \a    \a    \a    \a    \a    \a    \a  1.83  1.87  1.94  1.94  $1.9  1.94  1.94  1.79  1.80  1.85  1.85  1.79  1.74  1.74  1.74  1.86  1.86  1.93    \a  $1.83
                                                                                        0
1%             \a    \a    \a    \a    \a    \a    \a    \a  1.82  1.85  1.92  1.92  $1.8  1.92  1.92  1.84  1.85  1.90  1.90  1.86  1.81  1.81  1.81  1.94  1.94  2.00    \a  $1.88
                                                                                        8
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a  1.82  1.83  1.90  1.90  $1.8  1.90  1.90  1.89  1.90  1.94  1.94  1.92  1.87  1.87  1.87  2.00  2.00  2.02    \a  $1.93
                                                                                        6
Cooperative  1.36  1.36  1.35  1.34  1.35  1.38  1.44  1.45  1.51  1.58  1.61  1.53  $1.4  1.32  1.30  1.31  1.37  1.36  1.29  1.22  1.22  1.22  1.34  1.40  1.40  1.40  1.43  $1.33
                                                                                        4
Mailbox      1.18  1.16  1.18  1.19  1.26  1.27  1.32  1.37  1.42  1.35  1.18  1.12  $1.2  1.14  1.17  1.17  1.09  1.04  1.01  1.01  1.11  1.16  1.21  1.27  1.27  1.25  1.26  $1.15
                                                                                        5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Milwaukee, Wis., market, the farm price is the Chicago
Regional mailbox price; the cooperative price is the announced
cooperative price for Milwaukee; the wholesale price is the price
charged by the commissary at the Great Lakes Naval Training Center;
and the retail price is the A.C.  Nielsen price for the Milwaukee
market.  Prices may not average due to rounding. 



                                                                                      Table V.15
                                                                       
                                                                        Minneapolis, Minn., Market Milk Prices
                                                                       Per Gallon--Retail and Wholesale Prices,
                                                                        and Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $3.0  $3.0  $3.0  $3.0  $3.0  $3.0  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $2.9  $2.8  $2.8  $2.8  $2.9  $2.9  $2.9  $2.9  $2.9  $2.93
                0     0     1     1     3     6     0     0     4     5     4     3     7     9     6     5     8     8     2     5     6     6     2     3     3     4     4
2%           2.87  2.87  2.86  2.87  2.90  2.91  2.96  2.96  3.00  3.00  3.00  3.00  $2.9  2.95  2.90  2.89  2.91  2.92  2.87  2.78  2.77  2.78  2.84  2.85  2.86  2.87  2.88  $2.86
                                                                                        3
1%           2.81  2.80  2.80  2.81  2.84  2.86  2.89  2.87  2.90  2.94  2.96  2.99  $2.8  2.93  2.88  2.87  2.88  2.89  2.85  2.75  2.74  2.75  2.80  2.82  2.83  2.85  2.86  $2.84
                                                                                        7
Fat-free     2.77  2.76  2.76  2.77  2.80  2.82  2.85  2.78  2.81  2.84  2.90  2.98  $2.8  2.91  2.86  2.84  2.86  2.87  2.84  2.70  2.70  2.71  2.77  2.79  2.80  2.81  2.83  $2.81
                                                                                        2
Wholesale
Whole        2.18  2.22  2.24  2.22  2.22  2.25  2.31  2.37  2.37  2.44  2.51  2.55  $2.3  2.18  1.98  1.96  1.96  2.02  2.02  1.95  1.89  1.89  1.89  2.00  2.06  2.06  2.10  $2.00
                                                                                        2
2%           2.08  2.16  2.19  2.18  2.19  2.22  2.27  2.31  2.27  2.32  2.39  2.43  $2.2  2.05  1.92  1.90  1.90  1.94  1.94  1.89  1.84  1.83  1.83  1.95  2.01  1.97  2.06  $1.93
                                                                                        5
1%           2.03  2.13  2.18  2.17  2.19  2.22  2.27  2.28  2.20  2.23  2.30  2.34  $2.2  1.95  1.90  1.88  1.88  1.90  1.90  1.86  1.81  1.79  1.79  1.91  1.97  1.89  2.02  $1.89
                                                                                        1
Fat-free     1.98  2.11  2.17  2.16  2.19  2.22  2.27  2.26  2.16  2.18  2.25  2.29  $2.1  1.90  1.88  1.86  1.86  1.86  1.86  1.83  1.79  1.76  1.76  1.89  1.95  1.84  1.99  $1.86
                                                                                        9
Cooperative  1.27  1.28  1.28  1.27  1.29  1.34  1.39  1.41  1.47  1.51  1.56  1.45  $1.3  1.28  1.26  1.26  1.30  1.30  1.21  1.15  1.17  1.17  1.27  1.33  1.33  1.33  1.36  $1.27
                                                                                        8
Mailbox      1.17  1.15  1.16  1.18  1.24  1.25  1.30  1.35  1.40  1.32  1.16  1.10  $1.2  1.11  1.13  1.14  1.07  1.01  0.99  0.99  1.09  1.14  1.20  1.25  1.26  1.25  1.25  $1.13
                                                                                        3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  For the Minneapolis, Minn., market, the farm price is the
Upper Midwest mailbox price; the cooperative price is the announced
cooperative price for Minneapolis; the wholesale price is the price
charged by the commissary at Fort McCoy; and the retail price is the
A.C.  Nielsen price for the Minneapolis market.  Prices may not
average due to rounding. 



                                                                                      Table V.16
                                                                       
                                                                         New Hampshire Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.3  $2.3  $2.2  $2.2  $2.2  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.4  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.49
                2     0     8     9     7     0     6     4     4     8     9     8     3     8     7     6     8     9     0     0     0     9     5     6     8     5     4
2%           2.22  2.21  2.20  2.22  2.17  2.22  2.27  2.25  2.20  2.24  2.23  2.27  $2.2  2.28  2.26  2.26  2.28  2.28  2.31  2.51  2.51  2.46  2.44  2.47  2.45  2.40  2.44  $2.38
                                                                                        2
1%           2.15  2.19  2.12  2.17  2.18  2.17  2.19  2.16  2.17  2.16  2.21  2.22  $2.1  2.20  2.18  2.19  2.18  2.21  2.19  2.40  2.39  2.38  2.35  2.37  2.36  2.33  2.36  $2.29
                                                                                        7
Fat-free     2.16  2.15  2.16  2.18  2.15  2.20  2.23  2.19  2.19  2.19  2.21  2.22  $2.1  2.19  2.19  2.18  2.22  2.22  2.22  2.41  2.41  2.37  2.36  2.36  2.36  2.30  2.31  $2.29
                                                                                        9
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.98  1.98  1.98  2.18  2.18  2.18  2.18  2.18  2.18  2.18  2.18  $2.13
2%             \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.90  1.90  1.90  2.10  2.10  2.10  2.10  2.10  2.10  2.10  2.10  $2.05
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.84  1.84  1.84  2.04  2.04  2.04  2.04  2.04  2.04  2.04  2.04  $1.99
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.80  1.80  1.80  2.00  2.00  2.00  2.00  2.00  2.00  2.00  2.00  $1.95
Cooperative  1.44  1.44  1.42  1.41  1.42  1.45  1.51  1.53  1.57  1.61  1.65  1.58  $1.5  1.36  1.34  1.39  1.43  1.44  1.35  1.54  1.52  1.50  1.50  1.50  1.50  1.50  1.50  $1.45
                                                                                        0
Mailbox      1.15  1.14  1.13  1.12  1.16  1.21  1.27  1.29  1.34  1.36  1.32  1.21  $1.2  1.12  1.09  1.13  1.12  1.10  1.03  1.09  1.12  1.15  1.21  1.25  1.24  1.23  1.22  $1.15
                                                                                        3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the New Hampshire market, the farm price is the New
England mailbox price; the cooperative price is the estimated
cooperative price (Boston cooperative price minus $.0129 per gallon);
the wholesale price is the price charged by the commissary at the
Portsmouth Naval Shipyard; and the retail price is the A.C.  Nielsen
price for the Boston market which includes Rhode Island and parts of
New Hampshire.  Prices may not average due to rounding. 



                                                                                     Table V.17
                                                                      
                                                                      New Haven, Conn., Market Milk Prices Per
                                                                      Gallon--Retail and Wholesale Prices, and
                                                                         Announced Cooperative Class I and
                                                                        Mailbox Prices (Both unadjusted for
                                                                       butterfat content), 1996-February 1998

                                                 1996                                                                              1997-98
             ----------------------------------------------------------------------------  ----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.  Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----
Retail
Whole        $2.4  $2.4  $2.4  $2.4  $2.4  $2.4  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.4  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.6  $2.7  $2.7  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6
                8     5     5     8     0     7     4     5     1     1     3     4     9     5     4     1     3     2     1     7     0     0     8     5     7     4     8     1
2%           2.31  2.34  2.32  2.35  2.33  2.40  2.45  2.43  2.24  2.31  2.32  2.48  $2.3  2.48  2.40  2.42  2.40  2.43  2.40  2.62  2.59  2.53  2.59  2.60  2.54  2.56  2.57  $2.5
                                                                                        6                                                                                         1
1%           2.28  2.27  2.26  2.22  2.27  2.27  2.27  2.25  2.30  2.23  2.34  2.41  $2.2  2.33  2.33  2.36  2.32  2.34  2.31  2.54  2.53  2.51  2.49  2.44  2.49  2.58  2.44  $2.4
                                                                                        8                                                                                         3
Fat-free     2.30  2.29  2.29  2.34  2.29  2.35  2.38  2.32  2.37  2.37  2.42  2.48  $2.3  2.40  2.42  2.39  2.46  2.45  2.44  2.61  2.63  2.60  2.57  2.55  2.53  2.56  2.57  $2.5
                                                                                        5                                                                                         1
Wholesale
Whole          \a    \a    \a  1.79  1.91  1.91  1.91  2.03  2.03  2.07  2.11  2.00  $1.9  1.78  1.76  1.81  1.85  1.85  1.76  1.95  1.95  1.95  1.95  1.95  1.95  1.95  1.95  $1.8
                                                                                        7                                                                                         9
2%             \a    \a    \a  1.75  1.87  1.87  1.87  1.89  1.89  1.93  1.97  1.86  $1.8  1.64  1.62  1.67  1.71  1.71  1.62  1.81  1.81  1.81  1.81  1.81  1.81  1.81  1.81  $1.7
                                                                                        8                                                                                         5
1%             \a    \a    \a  1.70  1.82  1.82  1.82  1.81  1.81  1.85  1.89  1.78  $1.8  1.56  1.54  1.59  1.63  1.63  1.54  1.73  1.73  1.73  1.73  1.73  1.73  1.73  1.73  $1.6
                                                                                        1                                                                                         7
Fat-free       \a    \a    \a  1.68  1.80  1.80  1.80  1.71  1.71  1.75  1.79  1.68  $1.7  1.46  1.44  1.49  1.53  1.53  1.44  1.63  1.63  1.63  1.63  1.63  1.63  1.63  1.63  $1.5
                                                                                        5                                                                                         7
Cooperative  1.44  1.44  1.43  1.42  1.42  1.46  1.52  1.53  1.58  1.62  1.65  1.58  $1.5  1.37  1.34  1.39  1.44  1.44  1.35  1.55  1.53  1.51  1.50  1.50  1.50  1.50  1.50  $1.4
                                                                                        1                                                                                         6
Mailbox      1.15  1.14  1.13  1.12  1.16  1.21  1.27  1.29  1.34  1.36  1.32  1.21  $1.2  1.12  1.09  1.13  1.12  1.10  1.03  1.09  1.12  1.15  1.21  1.25  1.24  1.23  1.22  $1.1
                                                                                        3                                                                                         5
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the New Haven, Conn., market, the farm price is the New
England mailbox price; the cooperative price is the announced
cooperative price for Hartford; the wholesale price is the price
charged by the commissary at the New London Naval Submarine Base; and
the retail price is the A.C.  Nielsen price for the Hartford-New
Haven market.  Prices may not average due to rounding. 



                                                                                      Table V.18
                                                                       
                                                                       New Orleans, La., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.3  $2.3  $2.3  $2.3  $2.3  $2.5  $2.5  $2.6  $2.6  $2.6  $2.6  $2.6  $2.5  $2.6  $2.5  $2.5  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.6  $2.7  $2.7  $2.7  $2.7  $2.65
                0     6     8     7     9     0     9     0     3     5     5     6     1     1     6     9     2     2     8     6     5     7     9     8     8     8     7
2%           2.30  2.35  2.37  2.36  2.39  2.51  2.59  2.59  2.61  2.59  2.61  2.62  $2.4  2.58  2.57  2.57  2.59  2.58  2.55  2.55  2.51  2.52  2.67  2.74  2.72  2.73  2.72  $2.61
                                                                                        9
1%           2.22  2.26  2.29  2.28  2.29  2.41  2.51  2.55  2.56  2.56  2.56  2.53  $2.4  2.51  2.53  2.54  2.54  2.49  2.50  2.50  2.48  2.49  2.63  2.72  2.70  2.71  2.70  $2.57
                                                                                        2
Fat-free     2.24  2.28  2.30  2.30  2.32  2.43  2.52  2.53  2.55  2.54  2.55  2.54  $2.4  2.52  2.51  2.55  2.56  2.55  2.53  2.52  2.49  2.49  2.64  2.74  2.72  2.72  2.72  $2.59
                                                                                        3
Wholesale
Whole        2.20  2.20  2.20  2.20  2.24  2.38  2.44  2.46  2.26  2.34    \a  2.30  $2.2  2.26  2.25    \a    \a  2.35  2.31  2.31  2.31  2.31  2.45  2.52  2.48  2.50  2.59  $2.39
                                                                                        9
2%           2.20  2.20  2.20  2.20  2.24  2.38  2.44  2.46  2.24  2.32    \a  2.28  $2.2  2.26  2.25    \a    \a  2.35  2.31  2.31  2.31  2.31  2.45  2.52  2.48  2.50  2.59  $2.39
                                                                                        9
1%           2.20  2.20  2.20  2.20  2.24  2.38  2.44  2.46  2.22  2.30    \a  2.26  $2.2  2.26  2.25    \a    \a  2.35  2.31  2.31  2.31  2.31  2.45  2.52  2.48  2.50  2.59  $2.39
                                                                                        8
Fat-free     2.20  2.20  2.20  2.20  2.24  2.38  2.44  2.46  2.19  2.27    \a  2.23  $2.2  2.23  2.22    \a    \a  2.32  2.31  2.31  2.31  2.31  2.45  2.52  2.48  2.50  2.59  $2.38
                                                                                        7
Cooperative  1.45  1.45  1.42  1.40  1.42  1.54  1.52  1.55  1.60  1.65  1.65  1.57  $1.5  1.42  1.41  1.42  1.42  1.43  1.32  1.26  1.26  1.27  1.44  1.50  1.50  1.51  1.54  $1.41
                                                                                        2
Mailbox      1.20  1.20  1.18  1.18  1.22  1.30  1.34  1.37  1.42  1.46  1.42  1.30  $1.3  1.19  1.18  1.18  1.16  1.15  1.10  1.05  1.07  1.10  1.22  1.27  1.27  1.28  1.29  $1.18
                                                                                        0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the New Orleans, La., market, the farm price is the
Southeast mailbox price; the cooperative price is the announced
cooperative price for New Orleans; the wholesale price is the price
charged by the commissary at the New Orleans Naval Air Station; and
the retail price is the A.C.  Nielsen price for the New
Orleans-Mobile market.  Prices may not average due to rounding. 



                                                                                      Table V.19
                                                                       
                                                                        New York, N.Y., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.6  $2.6  $2.6  $2.7  $2.7  $2.7  $2.6  $2.7  $2.6  $2.6  $2.6  $2.6  $2.6  $2.5  $2.5  $2.5  $2.6  $2.6  $2.6  $2.7  $2.7  $2.65
                4     6     6     6     5     9     4     1     7     3     9     9     3     0     5     6     8     5     2     8     7     7     4     8     8     0     2
2%           2.51  2.52  2.52  2.53  2.51  2.56  2.60  2.57  2.61  2.67  2.69  2.73  $2.5  2.63  2.53  2.56  2.62  2.63  2.57  2.56  2.54  2.53  2.61  2.63  2.64  2.66  2.67  $2.60
                                                                                        9
1%           2.53  2.54  2.55  2.54  2.54  2.55  2.55  2.53  2.60  2.61  2.72  2.73  $2.5  2.63  2.50  2.59  2.58  2.61  2.56  2.55  2.52  2.51  2.59  2.63  2.61  2.63  2.67  $2.58
                                                                                        8
Fat-free     2.55  2.58  2.56  2.57  2.54  2.51  2.58  2.53  2.63  2.65  2.73  2.76  $2.6  2.62  2.59  2.57  2.65  2.60  2.61  2.55  2.55  2.51  2.61  2.64  2.62  2.66  2.62  $2.60
                                                                                        0
Wholesale
Whole        1.96  1.98  1.98  1.98  1.98  2.02  2.02    \a    \a  2.08  2.14  2.14  $2.0  2.14  2.14  2.14  2.14  2.14  2.14  2.14  2.14  2.14    \a    \a    \a    \a    \a  $2.14
                                                                                        3
2%           1.93  2.00  2.00  2.00  2.00  2.04  2.04    \a    \a  2.06  2.12  2.12  $2.0  2.12  2.12  2.12  2.12  2.12  2.12  2.12  2.12  2.12    \a    \a    \a    \a    \a  $2.12
                                                                                        3
1%             \a    \a    \a    \a    \a   \\a    \a    \a    \a  2.06  2.12  2.12  $2.1  2.12  2.12  2.12  2.12  2.12  2.12  2.12  2.12  2.12    \a    \a    \a    \a    \a  $2.12
                                                                                        0
Fat-free     1.88  2.00  2.00  2.00  2.00  2.04  2.04    \a    \a  2.05  2.11  2.11  $2.0  2.11  2.11  2.11  2.11  2.11  2.11  2.11  2.11  2.11    \a    \a    \a    \a    \a  $2.11
                                                                                        2
Cooperative  1.44  1.44  1.42  1.41  1.42  1.46  1.51  1.53  1.58  1.61  1.65  1.55  $1.5  1.33  1.31  1.36  1.40  1.40  1.31  1.25  1.25  1.26  1.37  1.43  1.43  1.44  1.47  $1.36
                                                                                        0
Mailbox      1.16  1.14  1.13  1.13  1.18  1.21  1.27  1.29  1.35  1.35  1.27  1.18  $1.2  1.08  1.09  1.12  1.10  1.06  1.01  0.99  1.04  1.08  1.17  1.22  1.22  1.21  1.23  $1.11
                                                                                        2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the New York, N.Y., market, the farm price is the New
York-New Jersey mailbox price; the cooperative price is the estimated
cooperative price (New York Order Class I price plus $.0602 per
gallon); the wholesale price is the price charged by the commissary
at the United States Military Academy, West Point; and the retail
price is the A.C.  Nielsen price for the New York market.  Prices may
not average due to rounding. 



                                                                                      Table V.20
                                                                       
                                                                        Orlando, Fla., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----

Retail
Whole        $2.7  $2.7  $2.7  $2.7  $2.7  $2.9  $2.9  $2.9  $2.9  $3.0  $3.0  $3.0  $2.8  $2.9  $2.9  $2.9  $2.8  $2.8  $2.8  $2.8  $2.8  $2.8  $2.9  $2.9  $2.9  $2.9  $2.9  $2.91
                1     2     3     3     3     7     9     8     8     3     5     2     9     4     1     3     5     5     5     6     5     8     1     5     5     8     6
2%           2.71  2.71  2.71  2.72  2.73  2.98  2.99  2.96  2.96  3.03  3.05  3.01  $2.8  2.95  2.91  2.92  2.85  2.85  2.85  2.86  2.85  2.88  2.91  2.93  2.94  2.97  2.95  $2.90
                                                                                        8
1%           2.62  2.61  2.62  2.63  2.64  2.87  2.88  2.87  2.87  2.97  3.00  2.98  $2.8  2.90  2.86  2.88  2.80  2.80  2.80  2.80  2.79  2.82  2.86  2.88  2.89  2.92  2.90  $2.85
                                                                                        0
Fat-free     2.60  2.60  2.61  2.63  2.64  2.89  2.90  2.89  2.90  2.99  3.02  2.99  $2.8  2.91  2.87  2.89  2.82  2.81  2.81  2.82  2.81  2.84  2.88  2.91  2.91  2.94  2.92  $2.87
                                                                                        0
Wholesale
Whole        2.36  2.36  2.35  2.35  2.36  2.44  2.44  2.45  2.49  2.49  2.53  2.45  $2.4  2.30  2.30  2.30  2.40    \a    \a    \a  2.34  2.40  2.49  2.56    \a    \a    \a  $2.39
                                                                                        2
2%           2.28  2.28  2.27  2.27  2.28  2.36  2.36  2.37  2.42  2.42  2.46  2.38  $2.3  2.31  2.31  2.31  2.41    \a    \a    \a  2.35  2.41  2.50  2.57    \a    \a    \a  $2.40
                                                                                        5
1%           2.21  2.21  2.20  2.20  2.21  2.29  2.29  2.30  2.35  2.35  2.39  2.31  $2.2  2.31  2.31  2.31  2.41    \a    \a    \a  2.35  2.41  2.50  2.57    \a    \a    \a  $2.40
                                                                                        8
Fat-free     2.12  2.12  2.11  2.11  2.12  2.20  2.20  2.21  2.26  2.26  2.30  2.22  $2.1  2.22  2.22  2.22  2.32    \a    \a    \a  2.26  2.32  2.41  2.48    \a    \a    \a  $2.31
                                                                                        9
Cooperative  1.51  1.51  1.50  1.48  1.49  1.61  1.67  1.73  1.78  1.82  1.82  1.75  $1.6  1.57  1.57  1.54  1.54  1.51  1.51  1.43  1.43  1.48  1.56  1.62  1.62  1.60  1.62  $1.54
                                                                                        4
Mailbox      1.37  1.37  1.35  1.34  1.36  1.46  1.53  1.60  1.62  1.66  1.69  1.58  $1.4  1.38  1.37  1.34  1.33  1.33  1.31  1.29  1.29  1.35  1.44  1.49  1.48  1.47  1.45  $1.38
                                                                                        9
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Orlando, Fla., market, the farm price is the Florida
mailbox price; the cooperative price is the estimated cooperative
price (Miami cooperative price minus $.0860 per gallon); the
wholesale price is the price charged by the commissary at the Orlando
Naval Training Center; and the retail price is the A.C.  Nielsen
price for the Orlando market.  Prices may not average due to
rounding. 



                                                                                      Table V.21
                                                                       
                                                                        Philadelphia, Pa., Market Milk Prices
                                                                       Per Gallon--Retail and Wholesale Prices,
                                                                        and Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.6  $2.6  $2.6  $2.7  $2.7  $2.7  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.4  $2.4  $2.5  $2.6  $2.6  $2.6  $2.6  $2.55
                5     6     5     4     5     6     2     3     6     0     4     1     1     2     2     2     6     8     4     0     3     4     2     0     3     2     2
2%           2.41  2.43  2.44  2.43  2.44  2.46  2.49  2.48  2.50  2.54  2.57  2.55  $2.4  2.46  2.39  2.40  2.43  2.43  2.39  2.34  2.32  2.32  2.39  2.47  2.46  2.45  2.49  $2.41
                                                                                        8
1%           2.35  2.39  2.40  2.40  2.41  2.43  2.46  2.43  2.43  2.46  2.50  2.48  $2.4  2.40  2.34  2.37  2.38  2.38  2.34  2.29  2.26  2.26  2.33  2.41  2.40  2.38  2.43  $2.36
                                                                                        3
Fat-free     2.27  2.33  2.35  2.35  2.36  2.39  2.39  2.33  2.32  2.34  2.39  2.38  $2.3  2.34  2.30  2.29  2.30  2.27  2.26  2.22  2.18  2.17  2.26  2.33  2.30  2.27  2.33  $2.27
                                                                                        5
Wholesale
Whole        2.00  2.02  2.02  1.98  2.00  2.05  2.10  2.11  2.18  2.21  2.28  2.16  $2.0  2.16  2.16  1.96  2.02  2.02  1.93  1.87  1.87  1.88  1.88  1.98  2.09  2.09  2.13  $2.00
                                                                                        9
2%           1.92  1.97  1.94  1.94  1.96  2.00  2.03  1.99  2.03  2.08  2.14  2.05  $2.0  2.05  2.05  1.90  1.93  1.93  1.85  1.79  1.77  1.79  1.79  1.89  1.96  1.96  2.02  $1.90
                                                                                        0
1%           1.88  1.95  1.93  1.93  1.95  1.98  2.00  1.93  1.96  2.01  2.07  1.99  $1.9  1.99  1.99  1.87  1.89  1.89  1.82  1.76  1.73  1.75  1.75  1.84  1.89  1.89  1.97  $1.86
                                                                                        7
Fat-free     1.81  1.91  1.88  1.89  1.91  1.94  1.94  1.82  1.85  1.90  1.96  1.96  $1.9  1.96  1.96  1.82  1.82  1.82  1.75  1.70  1.64  1.67  1.67  1.77  1.78  1.78  1.89  $1.79
                                                                                        0
Cooperative  1.43  1.44  1.42  1.41  1.42  1.45  1.51  1.52  1.57  1.61  1.67  1.57  $1.5  1.35  1.33  1.38  1.42  1.43  1.34  1.27  1.28  1.29  1.39  1.49  1.49  1.50  1.53  $1.39
                                                                                        0
Mailbox      1.17  1.14  1.11  1.10  1.15  1.24  1.30  1.33  1.38  1.36  1.34  1.23  $1.2  1.10  1.10  1.13  1.12  1.09  1.05  1.01  1.03  1.07  1.19  1.26  1.24  1.21  1.25  $1.13
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  For the Philadelphia, Pa., market, the farm price is the
Middle Atlantic mailbox price; the cooperative price is the announced
cooperative price for Philadelphia; the wholesale price is the price
charged by the commissary at Carlisle Barracks; and the retail price
is the A.C.  Nielsen price for the Philadelphia market.  Prices may
not average due to rounding. 



                                                                                      Table V.22
                                                                       
                                                                        Phoenix, Ariz., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                       Announced Cooperative Class I and Blend
                                                                        Prices (Both unadjusted for butterfat
                                                                             content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.3  $2.4  $2.4  $2.2  $2.3  $2.2  $2.2  $2.2  $2.2  $2.2  $2.2  $2.1  $2.0  $2.2  $2.2  $2.2  $2.3  $2.2  $2.23
                5     2     8     5     3     3     2     7     5     6     0     3     8     0     1     4     3     2     1     1     3     4     4     9     9     4     4
2%           1.79  1.75  1.86  1.79  1.75  1.79  1.86  1.86  1.79  2.02  1.93  1.98  $1.8  1.83  1.85  1.70  1.65  1.85  1.92  1.88  1.75  1.69  1.94  1.83  1.90  1.92  1.74  $1.82
                                                                                        5
1%           1.86  1.92  1.89  1.91  1.82  1.85  1.94  1.92  1.77  1.97  1.90  2.03  $1.9  1.81  1.91  1.72  1.61  1.87  1.91  1.92  1.75  1.74  1.94  1.86  1.92  2.00  1.77  $1.84
                                                                                        0
Fat-free     1.86  1.93  1.93  1.92  1.85  1.93  1.98  1.96  1.79  2.02  1.91  2.06  $1.9  1.86  1.96  1.75  1.71  1.92  1.99  1.95  1.79  1.77  2.01  1.90  1.94  2.03  1.83  $1.89
                                                                                        3
Wholesale
Whole          \a    \a    \a    \a    \a  1.77  1.84    \a  1.93  2.01  1.91  1.91  $1.8  1.75  1.75  1.80  1.85  1.85  1.77  1.71  1.71  1.73  1.73  1.90  1.91  1.92    \a  $1.80
                                                                                        9
2%             \a    \a    \a    \a    \a  1.71  1.73    \a  1.78  1.86  1.80  1.80  $1.7  1.70  1.70  1.75  1.77  1.77  1.71  1.66  1.65  1.66  1.78  1.84  1.79  1.79    \a  $1.73
                                                                                        8
1%             \a    \a    \a    \a    \a  1.67  1.67    \a  1.69  1.77  1.73  1.73  $1.7  1.72  1.72  1.77  1.77  1.77  1.73  1.68  1.66  1.68  1.80  1.86  1.77  1.76    \a  $1.75
                                                                                        1
Fat-free       \a    \a    \a    \a    \a  1.63  1.63    \a  1.61  1.69  1.67  1.67  $1.6  1.67  1.67  1.72  1.72  1.72  1.69  1.64  1.61  1.63  1.75  1.82  1.70  1.68    \a  $1.69
                                                                                        5
Cooperative  1.32  1.33  1.31  1.30  1.31  1.34  1.40  1.41  1.46  1.50  1.54  1.43  $1.3  1.21  1.19  1.24  1.29  1.29  1.20  1.14  1.14  1.15  1.25  1.32  1.32  1.33  1.36  $1.25
                                                                                        9
Ariz. Blend  1.13  1.11  1.10  1.10  1.15  1.19  1.26  1.29  1.33  1.30  1.22  1.12  $1.1  1.04  1.05  1.08  1.06  1.03  1.00  0.98  1.02  1.05  1.12  1.15  1.14  1.13  1.16  $1.07
                                                                                        9
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Phoenix, Ariz., market, the farm price is the Central
Arizona Blend price minus $.0602 per gallon for hauling costs and
other fees; the cooperative price is the announced cooperative price
for Phoenix; the wholesale price is the price charged by the
commissary at the Luke Air Force Base; and the retail price is the
A.C.  Nielsen price for the Phoenix market.  Prices may not average
due to rounding. 



                                                                                      Table V.23
                                                                       
                                                                        Raleigh, N.C., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.4  $2.4  $2.4  $2.4  $2.5  $2.5  $2.6  $2.6  $2.6  $2.7  $2.6  $2.6  $2.5  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.5  $2.5  $2.5  $2.6  $2.6  $2.6  $2.5  $2.5  $2.61
                4     6     7     9     1     8     4     5     5     0     9     7     8     7     3     5     5     3     2     7     5     9     1     2     1     8     7
2%           2.44  2.44  2.45  2.43  2.50  2.58  2.61  2.63  2.63  2.66  2.67  2.64  $2.5  2.62  2.60  2.62  2.59  2.60  2.60  2.52  2.48  2.57  2.57  2.61  2.57  2.55  2.55  $2.57
                                                                                        6
1%           2.41  2.44  2.41  2.46  2.46  2.57  2.62  2.63  2.64  2.63  2.66  2.65  $2.5  2.61  2.64  2.61  2.66  2.61  2.57  2.54  2.50  2.55  2.59  2.55  2.60  2.56  2.55  $2.58
                                                                                        5
Fat-free     2.39  2.45  2.44  2.47  2.47  2.52  2.57  2.56  2.54  2.58  2.62  2.65  $2.5  2.58  2.62  2.52  2.59  2.56  2.57  2.49  2.47  2.54  2.60  2.54  2.60  2.54  2.55  $2.56
                                                                                        2
Wholesale
Whole        2.34  2.34  2.33  2.32  2.33  2.47  2.62  2.62  2.68  2.72  2.76  2.73  $2.5  2.52  2.50  2.50  2.50  2.50  2.41  2.37  2.37  2.36  2.46  2.52  2.18  2.18  2.28  $2.40
                                                                                        2
2%           2.32  2.32  2.33  2.32  2.33  2.47  2.62  2.62  2.68  2.72  2.76  2.73  $2.5  2.52  2.50  2.50  2.50  2.50  2.41  2.37  2.37  2.36  2.46  2.52  2.15  2.15  2.25  $2.40
                                                                                        2
1%           2.32  2.37  2.37  2.35  2.35  2.51  2.59  2.59  2.59  2.63  2.67  2.67  $2.5  2.57  2.57  2.49  2.49  2.49  2.44  2.39  2.37  2.37  2.39  2.39  2.39  2.39  2.39  $2.44
                                                                                        0
Fat-free     2.17  2.25  2.25  2.19  2.19  2.36  2.44  2.39  2.39  2.44  2.49  2.49  $2.3  2.49  2.49  2.44  2.39  2.39  2.35  2.30  2.27  2.27  2.39  2.39  2.39  2.09  2.25  $2.35
                                                                                        4
Cooperative  1.43  1.43  1.42  1.40  1.43  1.55  1.62  1.65  1.69  1.73  1.73  1.62  $1.5  1.48  1.48  1.48  1.45  1.45  1.32  1.26  1.28  1.29  1.41  1.47  1.47  1.48  1.51  $1.42
                                                                                        6
Mailbox      1.27  1.27  1.24  1.23  1.27  1.35  1.41  1.44  1.50  1.54  1.53  1.41  $1.3  1.29  1.27  1.25  1.24  1.24  1.16  1.13  1.13  1.14  1.27  1.33  1.32  1.33  1.38  $1.25
                                                                                        7
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  For the Raleigh, N.C., market, the farm price is the Carolina
mailbox price; the cooperative price is the announced cooperative
price for Charlotte; the wholesale price is the price charged by the
commissary at Camp Lejeune; and the retail price is the A.C.  Nielsen
price for the Raleigh-Durham market.  Prices may not average due to
rounding. 



                                                                                      Table V.24
                                                                       
                                                                         Rhode Island Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.3  $2.3  $2.2  $2.2  $2.2  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.3  $2.4  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.49
                2     0     8     9     7     0     6     4     4     8     9     8     3     8     7     6     8     9     0     0     0     9     5     6     8     5     4
2%           2.22  2.21  2.20  2.22  2.17  2.22  2.27  2.25  2.20  2.24  2.23  2.27  $2.2  2.28  2.26  2.26  2.28  2.28  2.31  2.51  2.51  2.46  2.44  2.47  2.45  2.40  2.44  $2.38
                                                                                        2
1%           2.15  2.19  2.12  2.17  2.18  2.17  2.19  2.16  2.17  2.16  2.21  2.22  $2.1  2.20  2.18  2.19  2.18  2.21  2.19  2.40  2.39  2.38  2.35  2.37  2.36  2.33  2.36  $2.29
                                                                                        7
Fat-free     2.16  2.15  2.16  2.18  2.15  2.20  2.23  2.19  2.19  2.19  2.21  2.22  $2.1  2.19  2.19  2.18  2.22  2.22  2.22  2.41  2.41  2.37  2.36  2.36  2.36  2.30  2.31  $2.29
                                                                                        9
Wholesale
Whole        1.82  1.92  1.92  1.92  1.91  1.91  2.01  2.01  2.01  2.01  2.01  2.01  $1.9  1.81  1.79  1.84  1.88  1.88  1.79  1.98  1.98  1.98  1.98  1.98  1.98  1.98  1.98  $1.92
                                                                                        6
2%           1.76  1.86  1.86  1.86  1.85  1.85  1.94  1.94  1.94  1.94  1.94  1.94  $1.8  1.74  1.72  1.77  1.81  1.81  1.72  1.91  1.91  1.91  1.91  1.91  1.91  1.91  1.91  $1.85
                                                                                        9
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a     \a
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a     \a
Cooperative  1.45  1.45  1.44  1.42  1.43  1.47  1.53  1.54  1.59  1.63  1.66  1.59  $1.5  1.37  1.35  1.40  1.45  1.45  1.36  1.55  1.54  1.51  1.51  1.51  1.51  1.51  1.51  $1.47
                                                                                        2
Mailbox      1.15  1.14  1.13  1.12  1.16  1.21  1.27  1.29  1.34  1.36  1.32  1.21  $1.2  1.12  1.09  1.13  1.12  1.10  1.03  1.09  1.12  1.15  1.21  1.25  1.24  1.23  1.22  $1.15
                                                                                        3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Rhode Island market, the farm price is the New England
mailbox price; the cooperative price is the announced cooperative
price for Boston; the wholesale price is the price charged by the
commissary at the Newport Naval Education and Training Center; and
the retail price is the A.C.  Nielsen price for the Boston market,
which includes Rhode Island, and parts of New Hampshire.  Prices may
not average due to rounding. 



                                                                                      Table V.25
                                                                       
                                                                        Richmond, Va., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                         Virginia Class I and Grade A Prices
                                                                       (Both unadjusted for butterfat content),
                                                                                  1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.4  $2.4  $2.4  $2.4  $2.4  $2.5  $2.5  $2.5  $2.6  $2.6  $2.6  $2.6  $2.5  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.65
                6     4     4     6     7     3     8     9     0     1     4     5     4     6     5     6     5     4     5     4     5     4     6     8     5     5     6
2%           2.48  2.46  2.45  2.47  2.49  2.55  2.60  2.60  2.60  2.62  2.66  2.66  $2.5  2.66  2.64  2.66  2.64  2.65  2.66  2.66  2.67  2.65  2.68  2.69  2.65  2.65  2.67  $2.66
                                                                                        5
1%           2.44  2.46  2.44  2.47  2.48  2.53  2.57  2.57  2.58  2.58  2.62  2.65  $2.5  2.64  2.62  2.63  2.63  2.62  2.62  2.64  2.66  2.61  2.66  2.65  2.62  2.62  2.63  $2.63
                                                                                        3
Fat-free     2.36  2.39  2.38  2.41  2.42  2.50  2.55  2.55  2.54  2.55  2.59  2.63  $2.4  2.60  2.60  2.59  2.59  2.60  2.60  2.62  2.64  2.61  2.65  2.65  2.62  2.61  2.63  $2.62
                                                                                        9
Wholesale
Whole        2.01  2.03  2.02  2.00  2.01  2.06  2.14  2.12  2.14  2.18  2.20  2.12  $2.0  2.02  2.02  2.05  2.07  2.05  1.99  1.96  1.96  1.98  2.09  2.16  2.16  2.16  2.19  $2.06
                                                                                        9
2%           1.97  1.99  1.97  1.97  1.98  2.03  2.10  2.03  2.06  2.11  2.13  2.09  $2.0  2.00  2.00  2.04  2.04  1.99  1.95  1.92  1.92  1.94  2.05  2.11  2.10  2.10  2.16  $2.02
                                                                                        4
1%           1.92  1.96  1.94  1.94  1.95  2.00  2.06  1.97  2.02  2.07  2.09  2.08  $2.0  1.99  1.99  2.03  2.04  1.99  1.95  1.94  1.93  1.95  2.05  2.11  2.09  2.09  2.15  $2.02
                                                                                        0
Fat-free     1.90  1.94  1.92  1.92  1.93  1.98  2.04  1.93  2.00  2.04  2.06  2.06  $1.9  1.98  1.98  2.03  2.04  1.99  1.95  1.92  1.89  1.91  2.04  2.10  2.01  2.03  2.12  $2.00
                                                                                        8
Va. Class I  1.50  1.50  1.49  1.47  1.49  1.57  1.63  1.64  1.69  1.73  1.75  1.67  $1.5  1.47  1.47  1.49  1.52  1.50  1.41  1.35  1.36  1.37  1.48  1.54  1.56  1.57  1.60  $1.48
                                                                                        9
Grade A      1.19  1.20  1.16  1.14  1.18  1.23  1.29  1.31  1.33  1.38  1.38  1.24  $1.2  1.16  1.15  1.17  1.16  1.15  1.11  1.04  1.05  1.07  1.19  1.23  1.23  1.23  1.26  $1.16
                                                                                        5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  For the Richmond, Va., market, the farm price is based on data
collected by the National Agricultural Statistics Service on the
Grade A price paid to farmers in this area, minus $.0602 per gallon
for hauling costs and other fees; the cooperative price is the
Virginia State Order Class I price; the wholesale price is the price
charged by the commissary at Fort Lee; and the retail price is the
A.C.  Nielsen price for the Richmond-Norfolk market.  Prices may not
average due to rounding. 



                                                                                      Table V.26
                                                                       
                                                                        Sacramento, Calif., Market Milk Prices
                                                                       Per Gallon--Retail and Wholesale Prices,
                                                                          and California Class I and Mailbox
                                                                        Prices (Both unadjusted for butterfat
                                                                             content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.7  $2.7  $2.8  $2.8  $2.8  $2.6  $2.9  $2.7  $2.6  $2.6  $2.5  $2.5  $2.4  $2.4  $2.4  $2.6  $2.6  $2.6  $2.7  $2.7  $2.63
                3     6     4     8     6     9     8     1     1     2     0     8     6     1     5     4     2     7     2     8     6     5     8     4     8     3     3
2%           2.36  2.35  2.37  2.41  2.39  2.42  2.44  2.54  2.56  2.63  2.64  2.68  $2.4  2.70  2.56  2.48  2.50  2.45  2.41  2.36  2.33  2.30  2.48  2.46  2.51  2.56  2.56  $2.48
                                                                                        8
1%           2.56  2.60  2.62  2.65  2.65  2.67  2.70  2.83  2.78  2.87  2.87  2.93  $2.7  2.93  2.81  2.74  2.72  2.65  2.58  2.54  2.51  2.49  2.64  2.62  2.74  2.82  2.80  $2.69
                                                                                        3
Fat-free     2.48  2.58  2.58  2.52  2.54  2.58  2.56  2.62  2.57  2.63  2.68  2.72  $2.5  2.70  2.56  2.50  2.48  2.49  2.37  2.28  2.17  2.20  2.31  2.41  2.44  2.46  2.49  $2.42
                                                                                        9
Wholesale
Whole        1.86  1.86  1.86    \a    \a    \a    \a    \a    \a  2.04  2.15    \a  $1.9    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.89  2.09  2.09  2.09  $2.04
                                                                                        5
2%           1.87  1.87  1.87    \a    \a    \a    \a    \a    \a  2.04  2.14    \a  $1.9    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.86  2.06  2.06  2.06  $2.01
                                                                                        6
1%           1.87  1.87  1.87    \a    \a    \a    \a    \a    \a  2.05  2.14    \a  $1.9    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.86  2.06  2.06  2.06  $2.01
                                                                                        6
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a  1.86  1.92    \a  $1.8    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.73  1.93  1.93  1.93  $1.88
                                                                                        9
Calif.       1.30  1.31  1.31  1.27  1.27  1.29  1.29  1.41  1.41  1.51  1.51  1.53  $1.3  1.53  1.23  1.23  1.23  1.23  1.14  1.14  1.07  1.07  1.24  1.24  1.27  1.27  1.30  $1.23
 Class I                                                                                7
Mailbox      1.05  1.02  1.01  1.01  1.06  1.14  1.17  1.29  1.34  1.33  1.16  1.10  $1.1  1.11  1.06  1.06  1.03  0.97  0.96  0.97  1.04  1.01  1.12  1.15  1.15  1.13  1.17  $1.07
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Sacramento, Calif., market, the farm price is the
California mailbox price; the cooperative price is the Northern
California Class I price; the wholesale price is the price charged by
the commissary at the Stockton Naval Communications Station; and the
retail price is the A.C.  Nielsen price for the Sacramento market. 
Prices may not average due to rounding. 



                                                                                      Table V.27
                                                                       
                                                                       Salt Lake City, Utah, Market Milk Prices
                                                                       Per Gallon--Retail and Wholesale Prices,
                                                                        and Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.3  $2.3  $2.3  $2.3  $2.3  $2.4  $2.4  $2.4  $2.4  $2.4  $2.5  $2.5  $2.4  $2.5  $2.4  $2.4  $2.4  $2.4  $2.4  $2.4  $2.3  $2.3  $2.4  $2.5  $2.5  $2.4  $2.4  $2.45
                1     2     3     0     2     0     5     7     6     8     3     6     1     1     7     4     3     5     1     1     9     8     7     0     0     9     9
2%           2.06  2.07  2.04  1.98  2.04  2.13  2.13  2.16  2.13  2.17  2.26  2.27  $2.1  2.21  2.15  2.12  2.11  2.09  2.10  2.04  2.07  2.01  2.10  2.11  2.13  2.19  2.13  $2.11
                                                                                        2
1%           1.93  2.00  1.97  1.94  2.04  2.01  2.08  1.99  1.96  2.03  2.20  2.13  $2.0  2.17  2.03  2.09  2.02  2.06  2.00  2.00  2.03  2.03  2.17  2.13  2.17  2.10  2.15  $2.08
                                                                                        2
Fat-free     1.95  2.00  1.99  1.96  1.96  2.08  2.12  2.11  2.12  2.14  2.28  2.34  $2.0  2.29  2.25  2.21  2.17  2.16  2.15  2.12  2.10  2.12  2.25  2.30  2.26  2.22  2.22  $2.20
                                                                                        9
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a    \a    \a  2.04  2.12    \a  $2.0    \a    \a    \a    \a    \a    \a    \a    \a    \a  2.17  2.23  2.23  2.23  2.28  $2.23
                                                                                        8
2%             \a    \a    \a    \a    \a    \a    \a    \a    \a  1.92  2.00    \a  $1.9    \a    \a    \a    \a    \a    \a    \a    \a    \a  2.03  2.03  2.03  2.03  2.16  $2.06
                                                                                        6
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a  1.83  1.91    \a  $1.8    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.96  2.02  2.02  2.02  2.07  $2.01
                                                                                        7
Fat-free       \a    \a    \a    \a    \a    \a    \a    \a    \a  1.77  1.84    \a  $1.8    \a    \a    \a    \a    \a    \a    \a    \a    \a  1.89  1.95  1.95  1.95  1.95  $1.94
                                                                                        0
Cooperative  1.28  1.29  1.27  1.26  1.27  1.30  1.36  1.37  1.42  1.46  1.50  1.39  $1.3  1.17  1.15  1.20  1.25  1.25  1.16  1.10  1.10  1.11  1.21  1.28  1.28  1.29  1.32  $1.21
                                                                                        5
Mailbox      1.09  1.08  1.08  1.08  1.12  1.13  1.16  1.23  1.28  1.25  1.12  1.06  $1.1  1.00  1.02  1.04  0.99  0.94  0.91  0.91  0.97  1.02  1.07  1.11  1.12  1.08  1.11  $1.02
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Salt Lake City, Utah, market, the farm price is the
Great Basin mailbox price; the cooperative price is the announced
cooperative price for Salt Lake City; the wholesale price is the
price charged by the commissary at the Hill Air Force Base; and the
retail price is the A.C.  Nielsen price for the Salt Lake City-Boise
market.  Prices may not average due to rounding. 



                                                                                      Table V.28
                                                                       
                                                                        San Diego, Calif., Market Milk Prices
                                                                       Per Gallon--Retail and Wholesale Prices,
                                                                          and California Class I and Mailbox
                                                                        Prices (Both unadjusted for butterfat
                                                                             content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.9  $2.9  $3.1  $3.2  $3.2  $3.2  $3.2  $3.3  $3.4  $3.2  $3.1  $3.2  $3.2  $3.2  $2.9  $2.9  $2.8  $2.8  $2.8  $2.7  $2.7  $2.6  $2.8  $2.9  $2.8  $2.9  $2.9  $2.89
                2     9     7     0     1     3     5     5     0     5     9     3     0     3     9     0     8     7     3     8     8     5     8     1     9     3     2
2%           2.75  2.80  2.99  2.97  3.03  3.00  3.05  3.17  3.19  3.09  3.05  3.09  $3.0  3.07  2.82  2.73  2.75  2.75  2.74  2.68  2.68  2.54  2.74  2.79  2.77  2.78  2.78  $2.76
                                                                                        2
1%           3.16  3.19  3.34  3.37  3.37  3.40  3.45  3.57  3.63  3.51  3.48  3.50  $3.4  3.50  3.34  3.24  3.20  3.18  3.12  3.05  3.03  2.95  3.13  3.17  3.21  3.12  2.99  $3.16
                                                                                        1
Fat-free     2.66  2.72  2.81  2.81  2.76  2.82  2.87  3.02  3.05  2.89  2.82  2.83  $2.8  2.84  2.66  2.59  2.59  2.57  2.52  2.47  2.49  2.49  2.75  2.75  2.70  2.73  2.74  $2.63
                                                                                        4
Wholesale
Whole        2.35  2.25  2.27  2.29  2.34  2.36  2.39    \a    \a    \a  2.57  2.59  $2.3  2.59  2.33  2.33  2.37  2.33  2.24  2.24  2.19  2.19  2.37  2.37  2.39  2.28  2.32  $2.32
                                                                                        8
2%           2.35  2.23  2.25  2.27  2.34  2.36  2.39    \a    \a    \a  2.57  2.59  $2.3  2.59  2.33  2.33  2.37  2.33  2.24  2.24  2.19  2.19  2.35  2.35  2.37  2.23  2.26  $2.31
                                                                                        7
1%           2.35  2.25  2.27  2.27  2.34  2.36  2.39    \a    \a    \a  2.57  2.59  $2.3  2.59  2.33  2.33  2.37  2.33  2.24  2.24  2.19  2.19  2.34  2.34  2.31  2.18  2.21  $2.30
                                                                                        8
Fat-free     2.08  1.99  2.01  2.03  2.03  2.05  2.07    \a    \a    \a  2.20  2.24  $2.0  2.24  2.09  2.09  2.13  2.09  1.99  1.99  1.95  1.95  2.05  2.05  2.01  1.89  1.91  $2.03
                                                                                        8
Calif.       1.32  1.33  1.33  1.29  1.29  1.31  1.31  1.43  1.43  1.53  1.53  1.55  $1.3  1.55  1.25  1.25  1.25  1.25  1.16  1.16  1.10  1.10  1.26  1.26  1.30  1.30  1.33  $1.25
 Class I                                                                                9
Mailbox      1.05  1.02  1.01  1.01  1.06  1.14  1.17  1.29  1.34  1.33  1.16  1.10  $1.1  1.11  1.06  1.06  1.03  0.97  0.96  0.97  1.04  1.01  1.12  1.15  1.15  1.13  1.17  $1.07
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the San Diego, Calif., market, the farm price is the
California mailbox price; the cooperative price is the Southern
California Class I price; the wholesale price is the price charged by
the commissary at the San Diego Naval Station; and the retail price
is the A.C.  Nielsen price for the San Diego market.  Prices may not
average due to rounding. 



                                                                                      Table V.29
                                                                       
                                                                        Seattle, Wash., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.9  $2.9  $2.9  $3.0  $2.9  $3.0  $2.8  $3.0  $3.0  $3.0  $3.1  $3.1  $3.0  $3.0  $2.9  $2.9  $2.9  $2.8  $2.9  $3.0  $2.8  $2.9  $1.8  $2.9  $3.0  $2.9  $2.8  $2.88
                7     6     8     0     5     1     9     7     6     4     4     6     2     6     9     9     4     9     1     1     6     1     9     6     0     9     8
2%           1.94  1.98  2.01  2.01  1.98  1.90  2.00  2.10  2.13  2.13  2.15  2.06  $2.0  1.97  1.93  1.88  1.92  2.13  1.92  2.00  2.02  2.02  1.57  2.02  2.07  2.04  2.02  $1.97
                                                                                        3
1%           2.64  2.67  2.59  2.56  2.69  2.56  2.56  2.50  2.56  2.73  2.85  2.77  $2.6  2.71  2.62  2.50  2.53  2.64  2.44  2.34  2.45  2.27  1.59  2.17  2.26  2.28  2.23  $2.36
                                                                                        4
Fat-free     2.63  2.55  2.67  2.67  2.39  2.46  2.53  2.70  2.42  2.67  2.60  2.70  $2.5  2.49  2.75  2.54  2.59  2.63  2.45  2.41  2.30  2.32  1.52  2.21  2.26  2.24  2.20  $2.35
                                                                                        8
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a  1.79  1.84  1.88  1.92  1.92  $1.8  1.70  1.68  1.73  1.77  1.77  1.68  1.62  1.62  1.63  1.73  1.79  1.79  1.80  1.83  $1.72
                                                                                        7
2%             \a    \a    \a    \a    \a    \a    \a  1.61  1.66  1.70  1.74  1.74  $1.6  1.52  1.50  1.55  1.59  1.59  1.50  1.44  1.44  1.45  1.55  1.61  1.61  1.62  1.65  $1.54
                                                                                        9
1%             \a    \a    \a    \a    \a    \a    \a  1.48  1.53  1.57  1.61  1.61  $1.5  1.39  1.37  1.42  1.46  1.46  1.37  1.31  1.31  1.32  1.42  1.48  1.48  1.49  1.52  $1.41
                                                                                        6
Fat-free       \a    \a    \a    \a    \a    \a    \a  1.35  1.40  1.44  1.48  1.48  $1.4  1.24  1.22  1.27  1.31  1.31  1.22  1.16  1.16  1.17  1.27  1.33  1.33  1.34  1.37  $1.26
                                                                                        3
Cooperative  1.31  1.31  1.30  1.28  1.28  1.31  1.37  1.39  1.44  1.47  1.51  1.40  $1.3  1.19  1.16  1.22  1.26  1.26  1.17  1.12  1.12  1.13  1.23  1.30  1.30  1.31  1.34  $1.22
                                                                                        7
Mailbox      1.07  1.05  1.04  1.04  1.10  1.20  1.25  1.28  1.33  1.30  1.18  1.11  $1.1  1.04  1.04  1.08  1.06  1.02  1.00  0.98  1.01  1.03  1.14  1.19  1.16  1.15  1.18  $1.08
                                                                                        6
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Seattle, Wash., market, the farm price is the Pacific
Northwest mailbox price; the cooperative price is the announced
cooperative price for Seattle; the wholesale price is the price
charged by the commissary at the Everett Naval Station; and the
retail price is the A.C.  Nielsen price for the Seattle market. 
Prices may not average due to rounding. 



                                                                                      Table V.30
                                                                       
                                                                       Vermont Market Milk Prices Per Gallon--
                                                                           Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.6  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.6  $2.5  $2.5  $2.5  $2.5  $2.7  $2.7  $2.7  $2.7  $2.7  $2.7  $2.7  $2.7  $2.66
                1     0     1     8     7     8     7     4     3     1     1     5     1     4     1     7     9     9     4     4     2     0     1     2     2     2     3
2%           2.48  2.48  2.48  2.47  2.46  2.49  2.45  2.53  2.49  2.50  2.51  2.52  $2.4  2.55  2.49  2.48  2.48  2.49  2.47  2.63  2.61  2.62  2.64  2.67  2.65  2.65  2.63  $2.58
                                                                                        9
1%           2.48  2.44  2.48  2.46  2.44  2.46  2.45  2.50  2.48  2.44  2.46  2.50  $2.4  2.50  2.51  2.48  2.48  2.45  2.49  2.61  2.58  2.59  2.59  2.62  2.57  2.61  2.58  $2.55
                                                                                        7
Fat-free     2.38  2.36  2.44  2.38  2.36  2.37  2.37  2.44  2.44  2.39  2.38  2.44  $2.4  2.46  2.43  2.39  2.41  2.37  2.45  2.58  2.55  2.58  2.57  2.60  2.55  2.55  2.55  $2.50
                                                                                        0
Wholesale
Whole          \a    \a    \a  1.82  1.81  1.81  1.81  1.94  1.94  1.94  1.94  1.94  $1.8  1.69  1.67  1.72  1.76  1.76  1.67  1.86  1.86  1.86  1.86  1.86  1.86  1.86  1.86  $1.80
                                                                                        8
2%             \a    \a    \a  1.76  1.75  1.75  1.75  1.99  1.99  1.99  1.99  1.99  $1.8  1.74  1.72  1.77  1.81  1.81  1.72  1.91  1.91  1.91  1.91  1.91  1.91  1.91  1.91  $1.85
                                                                                        8
1%             \a    \a    \a  1.76  1.75  1.75  1.75  1.98  1.98  1.98  1.98  1.98  $1.8  1.73  1.71  1.76  1.80  1.80  1.71  1.90  1.90  1.90  1.90  1.90  1.90  1.90  1.90  $1.84
                                                                                        8
Fat-free       \a    \a    \a  1.72  1.71  1.71  1.71  1.93  1.93  1.93  1.93  1.93  $1.8  1.68  1.66  1.71  1.75  1.75  1.66  1.85  1.85  1.85  1.85  1.85  1.85  1.85  1.85  $1.79
                                                                                        3
Cooperative  1.40  1.40  1.38  1.37  1.38  1.42  1.47  1.49  1.54  1.57  1.61  1.54  $1.4  1.32  1.30  1.35  1.40  1.40  1.31  1.50  1.48  1.46  1.46  1.46  1.46  1.46  1.46  $1.42
                                                                                        6
Mailbox      1.15  1.14  1.13  1.12  1.16  1.21  1.27  1.29  1.34  1.36  1.32  1.21  $1.2  1.12  1.09  1.13  1.12  1.10  1.03  1.09  1.12  1.15  1.21  1.25  1.24  1.23  1.22  $1.15
                                                                                        3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Vermont market, the farm price is the New England
mailbox price; the cooperative price is the estimated cooperative
price (Boston announced cooperative price minus $.0516 per gallon);
the wholesale price is the price charged by the commissary at the
Hanscom Air Force Base; and the retail price is the price reported by
the state milk control agency for the Vermont market.  Prices may not
average due to rounding. 



                                                                                      Table V.31
                                                                       
                                                                       Washington, D.C., Market Milk Prices Per
                                                                       Gallon--Retail and Wholesale Prices, and
                                                                          Announced Cooperative Class I and
                                                                         Mailbox Prices (Both unadjusted for
                                                                        butterfat content), 1996-February 1998

                                                 1996                                                                               1997-98
             ----------------------------------------------------------------------------  -----------------------------------------------------------------------------------------
                                                             Sept                                                                          Sept
             Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Avg.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.   Avg.
-----------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Retail
Whole        $2.4  $2.4  $2.4  $2.4  $2.4  $2.4  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.5  $2.4  $2.4  $2.4  $2.4  $2.4  $2.4  $2.3  $2.4  $2.4  $2.4  $2.5  $2.4  $2.3  $2.44
                3     9     7     8     8     7     3     3     5     5     8     9     1     1     1     8     8     9     7     4     9     0     2     3     0     2     7
2%           2.41  2.46  2.44  2.45  2.47  2.45  2.49  2.49  2.50  2.49  2.52  2.52  $2.4  2.46  2.37  2.43  2.43  2.44  2.42  2.40  2.36  2.35  2.38  2.39  2.44  2.40  2.44  $2.41
                                                                                        7
1%           2.40  2.48  2.47  2.47  2.48  2.45  2.49  2.47  2.48  2.47  2.50  2.50  $2.4  2.45  2.38  2.42  2.41  2.42  2.41  2.38  2.33  2.35  2.36  2.37  2.42  2.36  2.44  $2.39
                                                                                        7
Fat-free     2.33  2.40  2.37  2.38  2.39  2.37  2.40  2.38  2.37  2.36  2.38  2.39  $2.3  2.36  2.29  2.31  2.31  2.33  2.33  2.29  2.26  2.27  2.27  2.27  2.32  2.30  2.36  $2.31
                                                                                        8
Wholesale
Whole          \a    \a    \a    \a    \a    \a    \a  1.94  1.94  1.98  2.02  1.91  $1.9  1.69  1.67  1.72  1.76  1.76  1.67  1.61  1.61  1.62  1.72  1.78  1.78  1.79  1.82  $1.71
                                                                                        6
2%             \a    \a    \a    \a    \a    \a    \a  1.86  1.86  1.90  1.94  1.83  $1.8  1.61  1.59  1.64  1.68  1.68  1.59  1.53  1.53  1.54  1.64  1.70  1.70  1.71  1.74  $1.63
                                                                                        8
1%             \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a    \a     \a
Fat-free       \a    \a    \a    \a    \a    \a    \a  1.74  1.74  1.78  1.82  1.71  $1.7  1.49  1.47  1.52  1.56  1.56  1.47  1.41  1.41  1.42  1.52  1.58  1.58  1.59  1.62  $1.51
                                                                                        6
Cooperative  1.43  1.44  1.42  1.41  1.42  1.45  1.51  1.52  1.57  1.61  1.67  1.57  $1.5  1.35  1.33  1.38  1.42  1.42  1.33  1.27  1.27  1.28  1.39  1.48  1.49  1.50  1.53  $1.39
                                                                                        0
Mailbox      1.17  1.14  1.11  1.10  1.15  1.24  1.30  1.33  1.38  1.36  1.34  1.23  $1.2  1.10  1.10  1.13  1.12  1.09  1.05  1.01  1.03  1.07  1.19  1.26  1.24  1.21  1.25  $1.13
                                                                                        4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a Data not available. 

Note:  For the Washington, D.C., market, the farm price is the Middle
Atlantic mailbox price; the cooperative price is the announced
cooperative price for Washington, D.C.; the wholesale price is the
price charged by the commissary at the Bolling Air Force Base; and
the retail price is the A.C.  Nielsen price for the Washington, D.C. 
market.  Prices may not average due to rounding. 


ALTERNATIVE FARM-LEVEL PRICE FOR
FLUID MILK
========================================================== Appendix VI

This appendix provides the results of our analysis using an
alternative method for calculating farm-level prices for fluid milk. 
When we met with USDA officials to obtain their comments on a draft
of this report, officials from the Economic Research Service (ERS)
suggested an alternative method by which we could better estimate the
farm-level price of a gallon of fluid milk compared with the mailbox
price.  These officials believe that the farm value of fluid milk is
better defined as the minimum order Class I price minus the
difference between the minimum order blend price and the mailbox
price.  This methodology for an alternative farm-level price assumes
that all classes of milk are equally profitable to the cooperative at
the prevailing prices.  ERS officials acknowledged that this is not
the case in some markets.  Nevertheless, they believe that their
recommended approach may be the only practical method by which to
determine the farm-level value of fluid milk within the reporting
timeframes.  Because the ERS method relies on the federal minimum
order Class I price, we could only apply it to those markets in our
sample of 31 selected markets that are under the federal milk
marketing order program.  Consequently, this appendix provides data
for only 24 of the 31 markets that we included in our analysis in
appendixes III and IV. 

In comparing the results of the alternative farm-level price analysis
to our analysis using the mailbox price series we found the
following: 

  -- Using the alternative farm-level price, farmers received a
     greater portion and cooperatives received a smaller portion of
     the retail price compared to what they received under our
     analysis using the mailbox price series.  We found that by using
     the alternative farm-level price farmers, on average, received
     47 percent of the retail price for a gallon of 2-percent milk
     instead of 43 percent, and cooperatives received 6 percent of
     the retail price instead of 10 percent in the 24 markets from
     January 1996 through February 1998.\1

  -- Consistent with the results of our analysis using the mailbox
     price series we found that farm prices decreased or stayed
     constant in all of the 24 markets over the 26-month period that
     we analyzed.  Consequently, over this period the farm-to-retail
     price spread increased in 22 of the 24 markets.  However, as
     would be expected, we found that some of the values changed, for
     increases or decreases in farm prices and the farm-to-retail
     price spread over the 26-month period, when we used the
     alternative farm price.  For example, the farm-level prices in
     several markets in the North Atlantic Region, such as Vermont
     and Boston, Mass., remained constant when we used the
     alternative farm-level price instead of decreasing as they did
     when we used the mailbox price series.  As a result, when we
     used the alternative farm-level price the farm-to-retail price
     spread in these markets was not as large as when we used the
     mailbox price. 

  -- Also, as in our mailbox price analysis, we found a strong
     correlation between changes in prices at the farm-level and
     changes in cooperative prices.  (Using the alternative
     farm-level price, we found a strong correlation between changes
     in farm prices and changes in cooperative prices in all 24
     markets whereas when we used mailbox prices we found a strong
     correlation in 21 of the 24 markets.) However, the degree of
     correlation was greater in almost all of the 24 markets when we
     used the alternative farm-level price.  Moreover, as would be
     expected, when we used the alternative farm-level price the
     strongest correlation still occurred between changes in prices
     at a given level in the milk marketing chain and changes in
     prices at the adjacent level. 

Table VI.1 through VI.4 present data for a gallon of 2-percent milk
for January 1996 through February 1998, using the ERS method to
calculate the alternative farm price.  Specifically these tables
detail (1) the farm value of a gallon of 2-percent milk (see table
VI.1), (2) the portion of the retail price of a gallon of 2-percent
milk that is received by farmers and cooperatives (see table VI.2),
(3) changes in farm and retail prices and their effect on the price
spread for 2-percent milk (see table VI.3), and (4) the way changes
in the alternative farm price are reflected in changes in prices at
the cooperative, wholesale, and retail levels (see table VI.4). 



                                                                                      Table VI.1
                                                                       
                                                                       Comparison of the Mailbox Price With the
                                                                        Alternative Farm Price for a Gallon of
                                                                        Milk Adjusted To Two Percent Butterfat
                                                                        Content for Twenty-Four Markets, 1996-
                                                                                    February 1998

                                                    1996                                                                        1997-98
                   ----------------------------------------------------------------------  ----------------------------------------------------------------------------------
                                                                                                                                                                                 26-
                                                                                                                                                                               month
                                                                   Sept                                                                    Sept                                avera
                   Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.  Mar.  Apr.   May  June  July  Aug.     .  Oct.  Nov.  Dec.  Jan.  Feb.     ge
-----------------  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  -----
Atlanta, Ga.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.3  $1.4  $1.3  $1.1  $1.0  $1.1  $1.1  $1.1  $1.0  $0.9  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.1  $1.14
 price                6     9     8     6     6     5     6     9     5     1     1     1     3     9     0     2     3     2     5     7     9     4     6     3     5     4
Mailbox price      1.10  1.13  1.11  1.10  1.11  1.11  1.13  1.16  1.20  1.26  1.32  1.20  1.08  1.04  1.03  1.03  1.03  0.95  0.90  0.94  0.96  1.00  1.01  1.08  1.10  1.09  $1.08
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.06
                      5     6     7     6     5     4     3     3     5     5     8     1     5     5     7     9     0     7     5     4     3     3     5     4     5     6

Boston, Mass.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $1.2  $1.2  $1.2  $1.1  $1.1  $1.2  $1.2  $1.1  $1.17
 price                8     1     9     7     5     0     4     5     0     8     1     0     0     2     6     3     3     1     0     0     0     4     3     0     1     6
Mailbox price      1.05  1.05  1.05  1.03  1.03  1.01  1.05  1.07  1.11  1.16  1.22  1.10  1.00  0.94  0.96  0.98  0.96  0.87  0.95  0.98  1.00  0.98  0.98  1.05  1.05  1.00  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.1  $0.1  $0.2  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.1  $0.14
                      4     5     5     4     2     9     9     8     9     2     9     0     0     9     0     5     7     4     6     3     0     6     4     5     6     6

Chicago, Ill.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.1  $1.1  $1.2  $1.2  $1.4  $1.2  $1.0  $1.0  $1.0  $1.1  $1.1  $0.9  $0.9  $0.9  $1.0  $1.0  $1.0  $1.1  $1.1  $1.1  $1.12
 price                7     9     8     6     7     9     3     8     1     8     0     9     7     4     5     0     0     8     3     8     0     1     7     2     4     2
Mailbox price      1.07  1.08  1.09  1.10  1.13  1.06  1.10  1.15  1.19  1.14  1.07  1.01  1.01  1.01  1.00  0.94  0.90  0.85  0.86  0.96  1.00  0.97  1.00  1.07  1.08  1.04  $1.03
Difference         $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.3  $0.2  $0.0  $0.0  $0.0  $0.1  $0.2  $0.1  $0.0  $0.0  ($0.  $0.0  $0.0  $0.0  $0.0  $0.0  $0.09
                      0     1     9     6     4     3     3     3     2     4     3     7     6     3     5     5     1     3     7     2   01)     3     7     5     6     8

Cincinnati, Ohio
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.1  $1.1  $1.1  $1.2  $1.3  $1.2  $1.0  $1.0  $1.0  $1.1  $1.0  $0.9  $0.9  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.1  $1.10
 price                4     6     5     3     1     7     1     3     8     5     9     9     5     0     3     0     9     8     2     2     4     0     6     1     3     0
Mailbox price      1.07  1.09  1.08  1.07  1.05  1.01  1.06  1.08  1.13  1.18  1.27  1.16  1.00  0.95  0.97  1.01  0.98  0.89  0.84  0.88  0.90  0.95  0.99  1.05  1.06  1.03  $1.03
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.07
                      7     7     8     7     5     6     6     5     5     7     2     3     6     5     6     9     1     9     7     5     4     5     7     6     7     7

Dallas, Tex.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $0.9  $0.9  $0.9  $1.0  $1.1  $1.1  $1.1  $1.1  $1.14
 price                9     1     0     8     7     3     8     9     2     9     0     0     1     6     8     4     4     1     6     7     7     5     0     7     8     6
Mailbox price      1.04  1.04  1.02  1.03  1.05  1.02  1.08  1.10  1.14  1.18  1.21  1.09  1.00  0.97  0.96  0.97  0.94  0.87  0.86  0.89  0.90  0.96  0.99  1.06  1.08  1.04  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.1  $0.13
                      5     7     8     5     2     0     0     8     9     1     9     1     1     9     2     7     0     5     0     7     7     9     1     0     0     2

Denver, Colo.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.1  $1.1  $1.1  $1.2  $1.3  $1.2  $1.0  $0.9  $1.0  $1.0  $1.0  $0.9  $0.9  $0.9  $0.9  $1.0  $1.0  $1.0  $1.1  $1.1  $1.10
 price                7     8     7     5     3     9     3     1     9     9     9     7     4     9     3     9     8     7     3     5     6     0     0     7     2     2
Mailbox price      1.04  1.05  1.04  1.05  1.05  0.99  1.03  1.03  1.11  1.15  1.13  1.03  0.93  0.91  0.92  0.92  0.88  0.81  0.81  0.88  0.91  0.91  0.89  0.97  1.01  1.00  $0.98
Difference         $0.1  $0.1  $0.1  $0.1  $0.0  $0.1  $0.1  $0.0  $0.0  $0.1  $0.2  $0.2  $0.1  $0.0  $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.1  $0.12
                      3     3     3     0     8     0     0     8     8     4     5     5     1     8     1     7     0     6     2     7     5     9     1     0     1     2

Houston, Tex.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $0.9  $0.9  $0.9  $1.0  $1.1  $1.1  $1.1  $1.1  $1.14
 price                9     1     0     8     7     3     8     9     2     9     0     0     1     6     8     4     4     1     6     7     7     5     0     7     8     6
Mailbox price      1.04  1.04  1.02  1.03  1.05  1.02  1.08  1.10  1.14  1.18  1.21  1.09  1.00  0.97  0.96  0.97  0.94  0.87  0.86  0.89  0.90  0.96  0.99  1.06  1.08  1.04  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.1  $0.13
                      5     7     8     5     2     0     0     8     9     1     9     1     1     9     2     7     0     5     0     7     7     9     1     0     0     2

Las Vegas, Nev.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.0  $1.1  $1.1  $1.0  $1.0  $1.0  $1.0  $1.0  $1.1  $1.1  $1.3  $1.1  $0.9  $0.9  $0.9  $1.0  $1.0  $0.8  $0.8  $0.8  $0.9  $0.9  $0.9  $1.0  $0.9  $1.0  $1.02
 price                8     0     0     7     5     1     2     6     2     9     0     8     5     1     4     0     0     9     5     7     0     1     4     0     9     0
Mailbox price      0.99  1.00  1.00  1.00  1.01  0.95  0.96  1.02  1.06  1.06  1.02  0.96  0.88  0.88  0.88  0.86  0.82  0.76  0.76  0.83  0.88  0.85  0.85  0.93  0.91  0.91  $0.92
Difference         $0.0  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.2  $0.2  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.09
                      9     1     0     7     4     6     6     5     6     3     8     3     7     4     7     4     8     3     9     4     1     5     8     7     8     9

Louisville, Ky.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.1  $1.1  $1.1  $1.2  $1.3  $1.2  $1.0  $1.0  $1.0  $1.0  $1.0  $0.9  $0.9  $0.9  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.09
 price                2     5     4     1     0     8     3     4     9     7     8     7     5     1     4     8     9     7     1     3     5     9     3     9     2     1
Mailbox price      1.08  1.10  1.09  1.07  1.07  1.05  1.10  1.12  1.16  1.23  1.32  1.20  1.02  0.98  1.01  1.02  1.04  0.93  0.88  0.90  0.93  0.96  0.98  1.05  1.08  1.07  $1.06
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.04
                      4     5     5     4     3     3     3     2     3     4     6     6     3     3     3     6     5     3     3     3     2     3     4     4     4     4

Miami, Fla.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.3  $1.3  $1.3  $1.2  $1.2  $1.3  $1.3  $1.4  $1.4  $1.5  $1.6  $1.5  $1.3  $1.2  $1.2  $1.2  $1.2  $1.1  $1.1  $1.1  $1.2  $1.2  $1.2  $1.3  $1.3  $1.2  $1.31
 price                0     6     1     7     7     0     3     0     3     1     2     4     1     7     3     4     3     9     7     7     1     4     8     2     3     8
Mailbox price      1.27  1.29  1.28  1.26  1.25  1.27  1.31  1.38  1.40  1.48  1.60  1.49  1.27  1.24  1.19  1.20  1.20  1.15  1.14  1.15  1.20  1.22  1.25  1.30  1.30  1.25  $1.28
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.03
                      3     6     3     1     2     3     2     2     3     3     2     5     4     3     4     4     3     4     2     2     1     2     3     2     3     3

Milwaukee, Wis.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.1  $1.1  $1.2  $1.2  $1.4  $1.2  $1.0  $1.0  $1.0  $1.1  $1.1  $0.9  $0.9  $0.9  $1.0  $1.0  $1.0  $1.1  $1.1  $1.1  $1.12
 price                7     9     8     6     7     9     3     8     1     8     0     9     7     4     5     0     0     8     3     8     0     1     7     2     4     2
Mailbox price      1.07  1.08  1.09  1.10  1.13  1.06  1.10  1.15  1.19  1.14  1.07  1.01  1.01  1.01  1.00  0.94  0.90  0.85  0.86  0.96  1.00  0.97  1.00  1.07  1.08  1.04  $1.03
Difference         $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.3  $0.2  $0.0  $0.0  $0.0  $0.1  $0.2  $0.1  $0.0  $0.0  ($0.  $0.0  $0.0  $0.0  $0.0  $0.0  $0.09
                      0     1     9     6     4     3     3     3     2     4     3     7     6     3     5     5     1     3     7     2   01)     3     7     5     6     8

Minneapolis, Minn.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.1  $1.1  $1.1  $1.2  $1.4  $1.2  $1.0  $0.9  $1.0  $1.0  $1.0  $0.9  $0.9  $0.9  $0.9  $0.9  $1.0  $1.1  $1.1  $1.1  $1.10
 price                6     8     7     4     4     7     1     4     9     4     0     7     4     8     1     8     8     6     1     4     7     9     5     2     3     2
Mailbox price      1.07  1.07  1.07  1.09  1.11  1.05  1.08  1.13  1.17  1.11  1.06  0.99  0.98  0.98  0.97  0.92  0.87  0.83  0.84  0.94  0.99  0.96  0.98  1.07  1.07  1.03  $1.02
Difference         $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.3  $0.2  $0.0  $0.0  $0.0  $0.1  $0.2  $0.1  $0.0  $0.0  ($0.  $0.0  $0.0  $0.0  $0.0  $0.0  $0.08
                      0     1     9     6     3     3     3     1     2     3     4     8     6     1     4     6     1     3     7     0   01)     3     7     5     6     8

New Hampshire
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $1.2  $1.2  $1.2  $1.1  $1.1  $1.2  $1.2  $1.1  $1.17
 price                8     1     9     7     5     0     4     5     0     8     1     0     0     2     6     3     3     1     0     0     0     4     3     0     1     6
Mailbox price      1.05  1.05  1.05  1.03  1.03  1.01  1.05  1.07  1.11  1.16  1.22  1.10  1.00  0.94  0.96  0.98  0.96  0.87  0.95  0.98  1.00  0.98  0.98  1.05  1.05  1.00  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.1  $0.1  $0.2  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.1  $0.14
                      4     5     5     4     2     9     9     8     9     2     9     0     0     9     0     5     7     4     6     3     0     6     4     5     6     6

New Haven, Conn.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $1.2  $1.2  $1.2  $1.1  $1.1  $1.2  $1.2  $1.1  $1.17
 price                8     1     9     7     5     0     4     5     0     8     1     0     0     2     6     3     3     1     0     0     0     4     3     0     1     6
Mailbox price      1.05  1.05  1.05  1.03  1.03  1.01  1.05  1.07  1.11  1.16  1.22  1.10  1.00  0.94  0.96  0.98  0.96  0.87  0.95  0.98  1.00  0.98  0.98  1.05  1.05  1.00  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.1  $0.1  $0.2  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.1  $0.14
                      4     5     5     4     2     9     9     8     9     2     9     0     0     9     0     5     7     4     6     3     0     6     4     5     6     6

New Orleans, La.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.3  $1.4  $1.3  $1.1  $1.0  $1.1  $1.1  $1.1  $1.0  $0.9  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.1  $1.14
 price                6     9     8     6     6     5     6     9     5     1     1     1     3     9     0     2     3     2     5     7     9     4     6     3     5     4
Mailbox price      1.10  1.13  1.11  1.10  1.11  1.11  1.13  1.16  1.20  1.26  1.32  1.20  1.08  1.04  1.03  1.03  1.03  0.95  0.90  0.94  0.96  1.00  1.01  1.08  1.10  1.09  $1.08
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  0.06  $0.06
                      5     6     7     6     5     4     3     3     5     5     8     1     5     5     7     9     0     7     5     4     3     3     5     4     5

New York, N.Y.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.3  $1.4  $1.3  $1.0  $1.0  $1.0  $1.1  $1.1  $1.0  $0.9  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.1  $1.14
 price                9     1     9     7     6     2     5     7     2     0     2     1     8     3     7     4     5     2     7     7     9     3     8     4     6     5
Mailbox price      1.05  1.06  1.05  1.04  1.05  1.02  1.06  1.08  1.13  1.15  1.17  1.07  0.96  0.94  0.96  0.96  0.93  0.85  0.84  0.89  0.93  0.94  0.96  1.03  1.04  1.02  $1.01
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.1  $0.2  $0.2  $0.1  $0.0  $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.1  $0.1  $0.1  $0.1  $0.1  $0.13
                      4     5     4     3     0     0     0     9     9     5     5     4     2     9     2     8     1     7     2     8     6     0     2     1     2     3

Orlando, Fla.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.2  $1.3  $1.2  $1.2  $1.2  $1.2  $1.3  $1.3  $1.4  $1.5  $1.6  $1.5  $1.2  $1.2  $1.2  $1.2  $1.2  $1.1  $1.1  $1.1  $1.2  $1.2  $1.2  $1.3  $1.3  $1.2  $1.30
 price                9     1     9     7     6     9     3     9     2     1     3     4     9     6     2     4     3     9     6     7     1     4     8     1     2     6
Mailbox price      1.27  1.29  1.28  1.26  1.25  1.27  1.31  1.38  1.40  1.48  1.60  1.49  1.27  1.24  1.19  1.20  1.20  1.15  1.14  1.15  1.20  1.22  1.25  1.30  1.30  1.25  $1.28
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.02
                      2     2     1     1     2     2     2     1     2     3     3     5     2     2     3     4     2     4     1     2     1     2     3     1     2     1

Philadelphia, Pa.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.2  $1.2  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.1  $1.1  $1.16
 price                1     3     2     9     8     4     6     9     4     8     4     3     0     5     9     5     6     4     8     9     0     5     0     7     8     8
Mailbox price      1.06  1.06  1.02  1.01  1.03  1.04  1.08  1.11  1.16  1.16  1.24  1.12  0.98  0.95  0.97  0.99  0.96  0.90  0.86  0.89  0.93  0.97  0.99  1.04  1.03  1.03  $1.02
Difference         $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.1  $0.13
                      5     8     0     9     4     9     9     8     8     2     0     1     2     0     2     7     0     4     1     9     8     9     0     2     5     4

Raleigh, N.C.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.2  $1.2  $1.2  $1.1  $1.1  $1.2  $1.2  $1.2  $1.3  $1.3  $1.4  $1.3  $1.2  $1.1  $1.1  $1.1  $1.1  $1.0  $1.0  $1.0  $1.0  $1.0  $1.1  $1.1  $1.2  $1.2  $1.19
 price                0     3     2     9     9     1     3     6     3     9     9     7     0     7     6     7     8     6     2     3     3     7     1     7     0     1
Mailbox price      1.16  1.19  1.16  1.15  1.16  1.16  1.19  1.22  1.28  1.35  1.43  1.30  1.17  1.12  1.10  1.11  1.11  1.00  0.98  0.99  1.00  1.04  1.06  1.13  1.16  1.16  $1.15
Difference         $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.05
                      4     4     6     5     4     5     3     4     5     4     6     7     3     4     6     6     7     6     4     4     3     3     5     4     4     4

Rhode Island
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $1.2  $1.2  $1.2  $1.1  $1.1  $1.2  $1.2  $1.1  $1.17
 price                8     1     9     7     5     0     4     5     0     8     1     0     0     2     6     3     3     1     0     0     0     4     3     0     1     6
Mailbox price      1.05  1.05  1.05  1.03  1.03  1.01  1.05  1.07  1.11  1.16  1.22  1.10  1.00  0.94  0.96  0.98  0.96  0.87  0.95  0.98  1.00  0.98  0.98  1.05  1.05  1.00  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.1  $0.1  $0.2  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.1  $0.14
                      4     5     5     4     2     9     9     8     9     2     9     0     0     9     0     5     7     4     6     3     0     6     4     5     6     6

Salt Lake City, Utah
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.0  $1.1  $1.1  $1.0  $1.0  $1.0  $1.0  $1.0  $1.1  $1.1  $1.3  $1.1  $0.9  $0.9  $0.9  $1.0  $1.0  $0.8  $0.8  $0.8  $0.9  $0.9  $0.9  $1.0  $0.9  $1.0  $1.02
 price                8     0     0     7     5     1     2     6     2     9     0     8     5     1     4     0     0     9     5     7     0     1     4     0     9     0
Mailbox price      0.99  1.00  1.00  1.00  1.01  0.95  0.96  1.02  1.06  1.06  1.02  0.96  0.88  0.88  0.88  0.86  0.82  0.76  0.76  0.83  0.88  0.85  0.85  0.93  0.91  0.91  $0.92
Difference         $0.0  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.2  $0.2  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.0  $0.09
                      9     1     0     7     4     6     6     5     6     3     8     3     7     4     7     4     8     3     9     4     1     5     8     7     8     9

Seattle, Wash.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.1  $1.1  $1.1  $1.1  $1.0  $1.0  $1.1  $1.1  $1.2  $1.3  $1.2  $1.0  $0.9  $0.9  $1.0  $1.0  $0.9  $0.9  $0.9  $0.9  $0.9  $1.0  $1.0  $1.0  $1.0  $1.07
 price                3     5     4     1     0     5     9     1     7     4     6     5     2     5     9     7     7     5     0     1     1     7     1     7     9     8
Mailbox price      0.97  0.97  0.96  0.96  0.99  1.01  1.04  1.06  1.11  1.11  1.08  1.00  0.92  0.89  0.92  0.93  0.89  0.85  0.83  0.86  0.88  0.91  0.94  0.97  0.97  0.97  $0.96
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.2  $0.2  $0.1  $0.0  $0.0  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.11
                      6     8     8     6     1     4     4     4     6     3     9     5     0     5     7     4     8     0     7     5     3     5     8     0     2     1

Vermont
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.1  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $1.2  $1.2  $1.2  $1.1  $1.1  $1.2  $1.2  $1.1  $1.17
 price                8     1     9     7     5     0     4     5     0     8     1     0     0     2     6     3     3     1     0     0     0     4     3     0     1     6
Mailbox price      1.05  1.05  1.05  1.03  1.03  1.01  1.05  1.07  1.11  1.16  1.22  1.10  1.00  0.94  0.96  0.98  0.96  0.87  0.95  0.98  1.00  0.98  0.98  1.05  1.05  1.00  $1.02
Difference         $0.1  $0.1  $0.1  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.1  $0.2  $0.1  $0.0  $0.1  $0.1  $0.1  $0.1  $0.2  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.1  $0.14
                      4     5     5     4     2     9     9     8     9     2     9     0     0     9     0     5     7     4     6     3     0     6     4     5     6     6

Washington, D.C.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alternative farm   $1.2  $1.2  $1.2  $1.1  $1.1  $1.1  $1.1  $1.1  $1.2  $1.2  $1.4  $1.3  $1.1  $1.0  $1.0  $1.1  $1.1  $1.0  $0.9  $0.9  $1.0  $1.0  $1.1  $1.1  $1.1  $1.1  $1.16
 price                1     3     2     9     8     4     6     9     4     8     4     3     0     5     9     5     6     4     8     9     0     5     0     7     8     8
Mailbox price      1.06  1.06  1.02  1.01  1.03  1.04  1.08  1.11  1.16  1.16  1.24  1.12  0.98  0.95  0.97  0.99  0.96  0.90  0.86  0.89  0.93  0.97  0.99  1.04  1.03  1.03  $1.02
Difference         $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.0  $0.1  $0.2  $0.2  $0.1  $0.1  $0.1  $0.1  $0.2  $0.1  $0.1  $0.0  $0.0  $0.0  $0.1  $0.1  $0.1  $0.1  $0.13
                      5     8     0     9     4     9     9     8     8     2     0     1     2     0     2     7     0     4     1     9     8     9     0     2     5     4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  Prices may not total or average due to rounding. 



                               Table VI.2
                
                Portion of the Retail Price of a Gallon
                 of 2-Percent Milk Received by Farmers
                 and Cooperatives Using the Alternative
                    Farm Price, January 1996 Through
                             February 1998

                                                               Percent
                                                   Percent    received
                                       Percent    received          by
                           Percent    received          by  cooperativ
                          received  by farmers  cooperativ    es using
                        by farmers   using the    es using         the
                         using the  alternativ         the  alternativ
                           mailbox      e farm     mailbox      e farm
Selected market area         price       price       price       price
----------------------  ----------  ----------  ----------  ----------
North Atlantic Region
----------------------------------------------------------------------
Boston, Mass.                   44          51          14           8
New Hampshire                   44          51          13           7
New Haven, Conn.                42          48          13           7
New York, N.Y.                  39          44          11           6
Philadelphia, Pa.               42          47          11           6
Rhode Island                    44          51          14           8
Vermont                         40          46          11           5
Washington, D.C.                42          47          11           6

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                    43          46           9           7
Louisville, Ky.                 48          50           7           6
Miami, Fla.                     43          44           8           7
New Orleans, La.                42          45           9           7
Orlando, Fla.                   44          45           6           5
Raleigh, N.C.                   45          47           7           6

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                   46          50           9           5
Cincinnati, Ohio                53          57          11           8
Milwaukee, Wis.                 48          52           9           5

West-North Central Region
----------------------------------------------------------------------
Minneapolis, Minn.              35          38           6           3

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                    44          49          11           5
Houston, Tex.                   47          53          13           8

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                   38          43           9           4
Las Vegas, Nev.                 33          37           6           3
Seattle, Wash.                  48          54           9           4
Salt Lake City, Utah            44          48          10           5
Average for the 24              43          47          10           6
 markets
----------------------------------------------------------------------
Note:  These percentages are based on milk prices adjusted for
2-percent butterfat content. 



                               Table VI.3
                
                 Increases or Decreases in the Farm-to-
                 Retail Price Spread for a Gallon of 2-
                Percent Milk Using the Alternative Farm
                  Price, January 1996 Through February
                                  1998

                              Increases or
                              decreases in                Increases or
                                       the  Increases or  decreases in
                               alternative  decreases in     the farm-
                                farm-level        retail     to-retail
Selected market area                prices        prices  price spread
----------------------------  ------------  ------------  ------------
North Atlantic Region
----------------------------------------------------------------------
Boston, Mass.                           \a          $.30          $.30
New Hampshire                           \a           .30           .30
New Haven, Conn.                        \a           .28           .28
New York, N.Y.                      $(.16)           .09           .25
Philadelphia, Pa.                    (.15)            \a           .15
Rhode Island                            \a           .30           .30
Vermont                                 \a           .19           .19
Washington, D.C.                     (.15)         (.08)           .07

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                         (.16)           .25           .41
Louisville, Ky.                      (.15)            \a           .15
Miami, Fla.                             \a            \a            \a
New Orleans, La.                     (.16)           .31           .47
Orlando, Fla.                           \a           .14           .14
Raleigh, N.C.                        (.17)            \a           .17

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                        (.17)           .22           .39
Cincinnati, Ohio                     (.15)        (1.23)        (1.08)
Milwaukee, Wis.                      (.17)            \a           .17

West-North Central Region
----------------------------------------------------------------------
Minneapolis, Minn.                   (.16)         (.09)           .07

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                         (.15)           .20           .35
Houston, Tex.                        (.15)            \a           .15

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                        (.18)           .29           .47
Las Vegas, Nev.                      (.20)            \a           .20
Seattle, Wash.                       (.17)            \a           .17
Salt Lake City, Utah                 (.19)            \a           .19
----------------------------------------------------------------------
Note:  The values used to calculate increases or decreases in retail-
and farm-level prices in table VI.3 are based on statistical
estimates of initial and final prices for these two levels, not the
actual observed prices recorded in the first and last month of the
period for which we have data.  The method for calculating these
estimates is described in app.  I.  The changes in the farm-to-retail
price spreads are the differences between the changes in retail- and
farm-level prices from January 1996 to February 1998 and consequently
are determined from the statistically estimated initial and final
prices for the retail and farm levels. 

\a Indicates that no statistically significant change was observed in
the price over the 26-month period and therefore represents a
constant price for that market. 



                               Table VI.4
                
                 Correlation Between Alternative-Farm-
                   Level-Price Changes and Changes in
                   Cooperative, Wholesale, and Retail
                 Prices for a Gallon of 2-Percent Milk,
                   January 1996 Through February 1998

                               Correlation   Correlation
                              coefficients  coefficients   Correlation
                                       for           for  coefficients
                               cooperative     wholesale    for retail
Selected market area                prices        prices        prices
----------------------------  ------------  ------------  ------------
North Atlantic Region
----------------------------------------------------------------------
Boston, Mass.                         .98*          .65*           .27
New Hampshire                         .98*          .79*           .27
New Haven, Conn.                      .99*          .82*           .15
New York, N.Y.                        .99*           .35          .64*
Philadelphia, Pa.                     .99*          .41*          .72*
Rhode Island                          .98*          .77*           .27
Vermont                               .99*          .65*           .32
Washington, D.C.                      .99*          .89*          .56*

Southeastern Region
----------------------------------------------------------------------
Atlanta, Ga.                          .96*           .31           .12
Louisville, Ky.                       .91*           .31           .18
Miami, Fla.                           .94*           .30          .51*
New Orleans, La.                      .92*           .07           .30
Orlando, Fla.                         .95*          .64*           .38
Raleigh, N.C.                         .96*           .35           .26

East-North Central Region
----------------------------------------------------------------------
Chicago, Ill.                         .95*           .25           .07
Cincinnati, Ohio                      .98*           .51         -0.13
Milwaukee, Wis.                       .94*           .25           .34

West-North Central Region
----------------------------------------------------------------------
Minneapolis, Minn.                    .96*          .61*          .52*

West-South Central Region
----------------------------------------------------------------------
Dallas, Tex.                          .93*           .21           .29
Houston, Tex.                         .92*           .21           .18

Mountain Pacific Region
----------------------------------------------------------------------
Denver, Colo.                         .97*          .69*           .03
Las Vegas, Nev.                       .97*           .15           .18
Seattle, Wash.                        .99*          .87*           .24
Salt Lake City, Utah                  .98*           .15           .29
----------------------------------------------------------------------
Note:  In calculating the correlation coefficients for each market,
we omitted the months for which data were missing. 

*Indicates that the correlation coefficient is statistically
significant (i.e.  p < .05).  However, we have not included the
p-values in the table. 


--------------------
\1 According to USDA officials, a portion of the amount received by
cooperatives may be used to pay costs, such as hauling, in some
markets. 


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix VII

Anu K.  Mittal, Assistant Director
Dale A.  Wolden, Evaluator-in-Charge
James L.  Dishmon, Jr.
Curtis L.  Groves
Jay L.  Scott
Sheldon H.  Wood, Jr. 


*** End of document. ***