Location of Plant 



The selection of a suitable location is based on the objective of minimiz- 

 ing the total transportation costs. By a process of approximation the supplies 

 of surplus milk within increasing radii of selected locations favored Con- 

 cord, New Hampshire. At this center more surplus milk was available with- 

 in a radius of 55 miles than for Laconia, Manchester, or Nashua. To obtain 

 the same amount of milk as is located within 55 miles of Concord would 

 require a radius of 60 miles from Laconia, 65 from Manchester, and 90 

 from Nashua. 



In addition, the existing highway pattern favors Concord which is ser- 

 viced by main highways from all parts of the state. 



Cost of Plant 



Estimates of cost for a size of plant adequate to handle the available 

 surplus have been drawn from study of butter-non-fat dry milk plants of the 

 western region of the United States.* 



The annual expenses per 100 lbs. of milk handled totals 62 cents. The 

 approximate cost of building and equipment plus necessary supplies would 

 be $250,000. Of course, if a building currently available can be used and 

 some of the existing equipment and supplies converted to the new operation, 

 then the capital costs could be reduced considerably. 



Table 15. Total Annual Expense per 

 100 lbs. of Milk Processed. 



Function 



Total 



Cost per 

 100 lbs. 



Table 16. Estimated Capital Cost of 



Processing Plant Large Enough to 



Handle Estimated New Hampshire 



Surplus 



.62 



Capital 



Total 



Dollars 



250,000 



Full Cooperation Needed 



The success of any such venture requires the complete cooperation of the 

 dealers in the state. Cooperative sharing of the costs would reduce the in- 

 dividual load. In addition, each member would be actively interested in the 

 financial and operational success of the plant. This would be the source of 

 supply for milk by-products for all cooperating dealers and would relieve 

 them of the inconveniences and higher costs of processing their own surplus 

 products, and of wasting skim milk. 



Alternative to a Central New Hampshire Plant 



The existing facilities of the NEMPA milk drying and processing plants 

 at Andover, Springfield, and Worcester, Massachusetts, provide outlets for 



* "An Economic Analysis of Butter-non-fat dry milk plants — Walker, Pres- 

 ton, and Nelson." Research Bulletin 20. University of Idaho, June, 1953. 



16 



