12 Report of the Acting Director and Chemist of the 



cheese? Several different factors enter into a complete answer of 

 such a question. One of them may be cost of transportation to the 

 best market. Another may be the greater relative market value 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 but- 

 ter, while the opposite may also be frequently true. In discussing 

 this question, we must consider conditions which are normal or aver- 

 age rather than those which are exceptional. The data which we 

 need to know are (1) the cost of production, and (2) the market value 

 of the product. In regard to cost of production, we have already 

 published data in Bulletins 77, 78 and 79, which can be utihzed in 

 considering the relative profits to be derived from selling milk in 

 different forms. We have also fixed prices for milk and its differ- 

 ent products, which represent average conditions and which are as 

 nearly accurate, relative to one another, as we may easily approxi- 

 mate. 



For the convenience of those who have not read the previous bul- 

 letins, we will give a brief statement here in regard to the basis 

 upon which our calculations are made in ascertaining the profits 

 derived from selling milk, cream, butter and cheese. 



The food-cost of products alone is considered. 



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 2| cents a quart for milk or 1.28 cents a pound. 



The value of the hutter is placed at an average price of 25 cents 

 a pound ; the butter contains 85 per cent of fat. 



The value of the cream is placed at 20 cents a quart ; the cream 

 contains 20 per cent of fat. 



The value of the cheese is placed at 10 cents a pound for cheese 

 about one month old, which would be equivalent to about 9f cents 

 a pound for green cheese. 



In calculating the amount of profit, a deduction is made from 

 the gross profit (the difference between the value of the product and 

 its food-cost), amounting, on an average, to 12|^ cents for each one 

 hundred 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 

 fhe case of cream. 



