between different dealer size groups and between months of the year as 

 suppHes and demand change. It will also vary according to the preferences 

 of different dealers, their facilities, and their willingness to handle the 

 many products which can be made from skim milk. If there are no pro- 

 cessing facilities and the quantity is small, the economics of using skim 

 milk profitably are open to question. This is shown in the large proportion 

 of skim milk which is dumped by the smaller dealers. 



The skim products handled by dealers may be produced at the plant or 

 they may be purchased. For example, cottage cheese is sold by most of the 

 dealers but the medium-size dealers depend on purchases for their supply. 

 The large dealers not only make their own but also purchase additional 

 supplies. Similarly, buttermilk is purchased by dealers. On the other hand, 

 retail skim milk and skim milk used in flavor drinks is from their own 

 supply. 



A large proportion of the skim milk produced as a by-product of heavy 

 cream is not used commercially. It is dumped down the drain or used on 

 the home farm. Some few farmers pick up supplies from their dealer for 

 livestock feeding. 



A pattern of skim milk utilization by dealer size is given in Table 5. 

 The proportion of skim milk which is clumped or fed to livestock declines 

 as the size of dealer increases from 91 percent for the smallest group to 18 

 percent for the largest group. 



Similarly the proportion of skim milk handled as cottage cheese is great- 

 er for the larger dealers. The dealers up to 700 quarts per day size group 

 buy all of their cottage cheese but the larger groups make most of their 

 own cheese. Other skim milk uses, such as in flavored drinks and as retail 

 skim milk, do not vary proportionately with the size of dealer. All sizes 

 of dealers make these products from their own skim milk. 



Seasonality of Production in Skim Products 



The proportions of skim milk used in the various product outlets remain 

 fairly uniform through the year. The decrease in the proportion moving 

 as cottage cheese during June and July is due to the diversion of increased 

 quantities of skim powder for use in the manufacture of ice cream during 

 the summer. 



This uniformity of the proportion of sales in each product is not matched 

 with a similar uniformity in production. The diversion of skim milk dur- 

 ing some months and the purchase of skim milk products to supplement 

 supplies during other months introduces problems. The excess skim in- 

 troduces a sales or disposal problem. The purchases to supplement skim 

 product supplies presents a buying problem. An efficient operation v^ill 

 include a profitable sales policy for excess skim and an economic purchase 

 program for other products when needed. 



Almost all dealers buy products made from skim milk for resale. At the 

 same time, those separating cream will dump the skim milk so produced. 

 For example, in May, dealers dumped 49 percent of their skim milk while 

 buying 11 percent of their skim milk requirements in the form of products. 



