I. Issue: Costs of Retailing Class I, Fluid Milk in the New England
Region

    The Commission did not receive comment with specific regard to New
England costs of retailing. As noted, the

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Aplin et al, extract of the Cornell study identified a total delivery
cost of $1.93. Adding an identified supermarket cost and return of
$0.19 establishes for this extract a retail cost of $2.12.
    The ERS study identified a total delivered cost of $1.04 and a
retailing cost of $0.35, for a total retail cost $1.39 per half gallon.
The retail cost component for the ERS study is substantially higher
than that for the Aplin study. The ERS study indicates part of this
cost may represent wholesaling formerly performed by processors, which
would explain at least part of the difference.
    The Commission concludes that the more recent Cornell extract
provides a useful benchmark for assessing New England costs of
retailing.