FINANCIAL RETURNS FROM DAIRYING 15 



A fair estimate of the yield of butter fat derived 

 from a cow of the aforementioned description would 

 be in the neighbourhood of 180 Ibs., which would 

 fetch an average price of loci, per Ib. There 

 would also be 550 gallons of skim (separator) milk 

 which, converted into pork products, is worth id. 

 per gallon. From this we gather that the income 

 from a cow of the above class would be in the 

 neighbourhood of ^"9 155. From this has to be 

 deducted the cost of production, which, being manu- 

 factured on grass and maize ensilage (referred to 

 elsewhere), is only a nominal cost. 



In cream selling, as in no other branch of milk 

 selling, the quality of the milk is an enormous factor 

 in determining the nett profit. In the above ex- 

 ample the milk has been estimated as yielding 3 % 

 of milk fat. It will be seen, therefore, that if the 

 milk yielded 4 % the returns would be relatively 

 greater, while 5 % milk would give still greater 

 returns without in any way increasing the cost of 

 production ; in many cases the extra i % of milk 

 fat would pay for the cost of production. 



Cost of Production. 



The chief factor in cost of production of milk 

 is cost of food. This must be considered from the 

 point of view of cost per gallon and not cost per 

 cow. The profitable character of milk production 

 is not dependent entirely on the milk yield per cow, 

 but on the cost at which the yield is obtained. 



