218 TWENTY-FIFTH ANNIVERSARY REPORT. 
of milk in the form of one product than in another. Thus, in the 
form of cream milk generally sells for more than in any other 
form, and occasionally cheese sells for a higher price relatively than 
butter, while the opposite may also be frequently true. In dis- 
cussing this question, we must consider conditions which are normal 
or average rather than those which are exceptional. The data 
which we need to know are (Ist) the cost of production and (2d) 
the market value of the product. In regard to cost of production, 
the data given in the preceding articles can be utilized in considering 
the relative profits to be derived from selling milk in different 
forms. We have also fixed prices for milk and its different 
products, which represent average conditions and which are as 
nearly accurate, relative to one another, as we may easily approxi- 
mate. 
BASIS OF CALCULATIONS. 
For convenience of ready reference, we will give a brief state- 
ment here in regard to the basis upon which our calculations are 
made in ascertaining the profits derived from selling milk, cream, 
butter-and cheese. 
(a) Cost—— The food-cost of products alone is considered. 
(b) Value of milk.— The value of the milk is based on the amount 
of total solids in milk, allowing 9% cents a pound for milk-solids, 
which is equivalent, on an average, to 234 cents a quart for milk or 
1.28 cents a pound. 
(c) Value of butter—The value of the butter is placed at an 
average price of 25 cents a pound; the butter contains 85 per ct. of 
fat. 
(d) Value of cream.— The value of the cream is placed at 20 
cents a quart; the cream contains 20 per ct. of fat. 
(e) Value of cheese-— The price for cheese is placed at 10 cents 
a pound for cheese about one month old. 
(f) Method of calculating profit—aA deduction is made from the 
gross profit (the difference between the value of the product and 
its food-cost), amounting to 12% cents for each 100 pounds of 
milk, representing the amount of feeding and fertilizing materials 
taken away from the farm in the case of selling milk and cheese. 
A smaller but proportionate reduction is made in the case of cream. 
The foregoing prices placed on the different dairy products do 
not represent actual prices at this writing, but they represent fairly 
the average prices prevailing during a period of normal years. In 
any case they may be regarded as relatively accurate, whether abso- 
lutely so or not. 
