44 Report of tub Department of Baci eriologt? of the 



of the product from single dairies. Estimates from various sources 

 differ slightly but $50,000 appears to be conservative. 

 These detailed estimates are assembled below; 



Capital Invested in Supplying Milk to City With 13,000 Inhabitants. 



Cows — 600 at $80 $48,000 



Land with buildings — 3,000 acres at $100 300,000 



Equipment — 3,000 acres at $20 per acre 60,000 



City distributers 50,000 



Total $45S,000 



Because of the magnitude of these totals and of the fact that 

 they are based upon estimates many will feel that they are too high. 

 Appreciating this fact the above conservative estimates were ac- 

 cepted notwithstanding the conviction of the authors that were 

 complete information available the grand total would be at least 

 10 per ct. higher. 



The State Department of Health bases its mortality statistics 

 for this city on an estimated population of 12,574. Using this 

 figure for the population, the above estimate of dairy capitalization 

 amounts to $36.42 per capita of the people being supplied with milk. 

 Considered from the agricultural standpoint the capitalization 

 amounts to $763 per cow of which the producer furnishes $680 and 

 the retailer $83. 



MARGIN OF PROFIT. 



The margin of profit of the individual producer can not be ac- 

 curately calculated without exact information regarding capital 

 invested, expense of operation and returns. On the other hand the 

 average financial returns from the business as a whole can be calcu- 

 lated from more general data and are even more instructive when 

 considering the workings of a plan for milk improvement. The 

 following financial analysis indicates how narrow is the margin of 

 average profit. It is this meagerness of financial return which 

 makes the dairy business respond so quickly to any opportunity for 

 increased gain. 



The income from these dairies is practically confined to the sale 

 of milk and some calves for veal and the accumulation of fertilizer. 

 The value of the fertilizer and of the veal is difficult to determine. 

 The amount of milk produced per cow may be estimated from the 

 yearly receipts of the two large retailers. While the number of 

 cows in the dairies varies somewhat during the year the receipts 

 of these retailers indicate that the annual production is approxi- 

 mately 2,800 quarts per cow. This is markedly more than the 

 average annual production for the State, which has been estimated 2 

 at 4,500 lbs., or 2,100 quarts. However, a high production is to 



2 The individual animal as the unit in profitable dairying. G. A. Smith, N. Y. 

 Agr Exp. Sta. Bui. 322. 1910. 



