EIGHTH ANNUAL YEAR BOOK— PART VII. 291 



Drayage 79 100 



Secretary 180 200 



Other officers 85 95 



Printing and stationery 25 25 



Butter for contests 35 • 35 



Convention expenses 25 25 



Total $2,059 $2,785 



Average cost in 138 plants averaging 75,000 lbs 2.78c per lb. 



Average cost in 46 plants averaging 150,000 lbs 1.88c per lb. 



Table 1 will give an idea as to how the cost is distributed. Attention 

 is particularly called to two items which usually do not appear in the 

 expense account of a creamery — these are $35, which has been allowed 

 for butter sent to contests of various kinds, and $25, which is allowed 

 for the convention expenses of the secretary or manager of the creamery. 

 It is believed that these two items are legitimate expenses and should 

 be paid by the patrons of the co-operative creamery, or by the owners 

 of an individual plant. This table also shows that the total cost of man- 

 ufacture in a 75,000 lb. plant is $2,059, while that of the 150,000 lb. plant 

 is $2,785. It is believed that this allowance is ample to cover all the 

 legitimate expenses of operating creameries of this size. The figures 

 are based on the operation of a whole milk plant. The cost will not 

 be so great in a plant receiving a large amount of cream or In which the 

 total receipts are from cream deliveries. 



Table No. II. 



Smallest creamery in which the overrun will pay operating expenses — 

 500 cows 

 125 lbs. butter fat each per year 



62,500 lbs. butter fat per year. 

 18% per cent overrun 



11,562 lbs. butter in overrun 

 62,500 lbs. butter fat 



74,062 lbs. butter 

 2.78c per lb. for making 



$2,059 — Cost to maintain plant. 



11,562 lbs. of butter must bring $2,059 to pay cost of making, 17.8c per lb. 

 Table 2 shows the business done in a small creamery in which the 

 overrun will pay the operating expenses. It is assumed that 500 cows 

 giving an average of 125 pounds of butter fat per year would supply 

 this creamery, which is a very low average yield per cow, much lower 

 than it should be. These cows will produce annually 62,500 pounds of 

 butter fat. If the average overrun of 18.5 per cent is used as a calculating 

 basis there will be made from this butter fat 74,062 pounds of butter, of 

 which 11,562 pounds are overrun. If the cost of manufacture in a plant 

 of this size, as shown in Table 1, is 2.78c per pound, this would make a 



