292 IOWA DEPARTMENT OF AGRICULTURE. 



total cost of $2,059 for operating the plant. In order that the 11,562 

 pounds of butter should bring $2,059 it would have to net the creamery 

 17.8c per pound. These estimates were made at this low price in order 

 to prove that there has not been a time since 1897 when a creamery of 

 this size would not pay expenses from the overrun. At present prices 

 the overrun from a creamery supplied by 400 cows would accomplish* the 

 same results. 



Table No. III. 



Comparison with creamery double the size of minimum — 

 1,000 cows producing 125 lbs. each equal 125,000 pounds. 

 500 cows producing 250 lbs. each equal 125,000 pounds. 

 125,000 lbs. butter fat per year 

 18% per cent overrun 



23,125 lbs. butter in overrun 

 125,000 lbs. butter fat 



148,125 lbs. butter 

 1.88c per lb. for making 



$ 2,785 — Cost to maintain plant 



23,125 lbs. butter at 17.8c per lb $4,116 



Which leaves a balance of (above cost of operation) 1,331 



For the sake of comparison, Table 3 shows double the amount of 

 butter manufactured in one year. To do this would require 1,000 cows, 

 giving 125 pounds of butter each, or 500 cows giving 250 pounds each, or 

 750 cows giving 166 pounds each. 



In this one statement there is text for a whole sermon as to ways and 

 means of increasing the yield per cow, and the income of the farmer. 

 But as this has no place in this particular discussion, nothing more will 

 be said upon this subject. 



Prom 125,000 pounds of butter fat 148,125 pounds of butter would be 

 made, giving an overrun of 23,125 pounds. The cost of manufacture, as 

 shown in Table 1, is 1.88c per pound, making a total cost of $2,785. 



If the overrun were valued at the same figure as that used in Table 2, 

 17.8c per pound, it would bring $4,116, or $1,331 above the cost of manu- 

 facture. If this buter were sold at the average price for the first nine 

 months of the year 1907, it would bring $3,648 above the cost of manu- 

 facture. 



In a co-operative creamery this amount is usually distributed pro rata 

 to the farmers and brings the price which they receive from to 1 to 2 cents 

 above the prevailing market price for butter. 



In various sections of the country the question has arisen from time 

 to time as to which is the more profitable, to make butter or to sell 

 cream to a' central plant. Buyers representing large interests have offered 

 to buy the cream received at various creameries, claiming that they could 

 pay enough to make it a profitable venture for the creamery. Proposi- 

 tions of this kind are often made to the smaller creameries and consid- 

 erable argument is brought to bear that it is foolish to pay the expense 



