CHAPTER XXIV 



COST OF MILK PRODUCTION BREED COMPARISONS- 

 FEEDING TEST COWS 



I. THE COST OP MILK PRODUCTION 



During the past few years the interest of dairymen in the cost of milk 

 production has been intense and widespread. This is largely because 

 the costs of feed and labor and the other expenses in producing milk 

 increased more rapidly in many sections of the country during the 

 World War than did the prices for dairy products. As a result there 

 arose a general demand by farmers for accurate information on the 

 cost of producing milk under average farm conditions. This was needed 

 not only as a basis for convincing consumers of the necessity of prices 

 more remunerative to the producer, but also as a guide to more econom- 

 ical methods of production. To secure definite data on this important 

 matter, scores of investigations have now been carried on by the various 

 experiment stations and the United States Department of Agriculture. 

 These investigations have not only furnished much accurate information 

 on the cost of producing milk, but have also pointed out ways in which 

 the individual farmer can reduce his own cost of production, so that in 

 many cases he can secure a satisfactory profit where otherwise there 

 might be a loss. 



665. Factors in cost of milk production. The cost of milk production 

 is made up of the following factors : 



1. The cost of feed and bedding is by far the largest single item in 

 the cost of producing milk, making up from one-half to two-thirds the 

 total gross cost. This expense will of course vary widely, depending 

 on the price of the various feeds, the productive capacity of the herd, and 

 the economy of the rations used. 



2. The cost of man and horse labor is next in importance. This 

 includes the labor of milking, feeding and caring for the cows, cleaning 

 the stables, handling and hauling milk, and all miscellaneous work 

 connected with the herd. The labor cost will make up at least one-fifth 

 to one-fourth the total gross cost. 



3. The building charge includes interest, taxes, and depreciation on 

 the proportion of the barn actually occupied by the cows and the feed 

 storage for the dairy herd. Repairs should also be included under 

 this item or under ' ' miscellaneous. ' ' 



4. The equipment charge covers interest, insurance, depreciation, and 

 any taxes on milk utensils or machinery, tools, etc. 



5. The cow charge, which covers depreciation, interest, taxes, and 



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