!N'eed of Dairy Improvement Association Work 29 



It will be seen from the above table that the increase in the 

 price of milk in the fifteen years is 37 per cent, which is much less 

 than the increase in the value of everything that enters into its pro- 

 duction ; but, with an increased cost of 100 per cent in investment, 

 interest, and depreciation, 50 per cent in grain and labor, and 36 

 per cent in roughage, a problem presents itself. Despite the 

 increase of 37 per cent in the selling price of dairy products, and 

 allowing, as we must, for the increase in the value of beef and 

 hides, the dairyman still finds himself with a smaller profit than 

 he had from a similar herd on the same farm fifteen years ago. 



There are two ways in which the producer of dairy products 

 can increase his profits: 



1. They may be increased by an increase in the selling price. 

 The dairyman feels that he is entitled to this, first, because of the 

 great increase in the cost of everything that enters into its produc- 

 tion, and, secondly, because milk at its present retail price is much 

 cheaper than any other food of its class that comes on the table 

 of the consumer. A quart of milk is equal to 15 cents' worth of 

 beef at 20 cents a pound, to 23 cents' worth of eggs at 35 cents 

 a dozen, or to 20 cents' worth of oysters at 40 cents a quart. The 

 dairyman, when he considers the value of the food he is placing 

 on the market and its high cost of production, feels that the 

 present selling price is too low ; but so long as there is sufficient 

 milk available to supply the market at the present price, no very 

 great increase can be expected. 



2. The second way for the dairyman to increase his profit is 

 by a lower cost of production. It is rather strange that farmers 

 when thinking of a greater profit usually expect it to come by way 

 of a higher selling price; in this case they think they are justly 

 entitled to a higher price, but are so intently watching the market 

 end of the business that they forget that the same result can often 

 be obtained by lowering the cost of production. The latter is usu- 

 ally within the farmer's control, while the former is often beyond 

 his reach. 



Records made by cow-testing associations show that the average 

 herd is making all its profit from about half the cows; one- 

 fourth of the herd just about pays expenses, while the remaining 

 one-fourth is kept at a loss. All herds have some good cows, 

 usually enough to breed a profitable herd; but the unprofitable 



