COST OF DISTRIBUTING MILK. 41 



One must bear in mind, however, that the expenses of collecting the 

 milk are not charged to the dealer. The above figures are calculated 

 from the time the milk arrives at the dairy or distributing plant until it 

 reaches the consumer, the cost of transportation from the producer to 

 the dealer's plant, including freight and haulage from producer to shipping 

 point and from shipping destination to milk plant, not being included, 

 whereas the producer's costs include haulage to the city. To this degree 

 the figures are not comparable. The dealer sometimes collects from the 

 producer, sometimes pays a higher price for milk delivered at his plant, 

 sometimes paj^s freight charges. Usually the difference between milk col- 

 lected by the dealer and milk delivered to the dealer is about one-half 

 cent per quart. 



When milk is shipped from a distance it is usually laid dovvTi at the 

 dealer's plant for a price equal to or less than the local producing dis- 

 tributor can produce it. In such case the dealer and the producer who 

 sells his own milk may both start from their doors with loads of milk equal 

 in value. When the dealer procures local milk he usually pays one-half 

 cent per quart more for it if brought to his dairy. 



Further analysis, both from a collective and an individual standpoint, 

 indicates that the variation in the cost of distribution is related closely to 

 the number of quarts delivered per horse in conjunction with the quarts 

 delivered per mile. One dealer (No. 14) with three horses delivers 1,600 

 quarts daily (including 500 quarts of wholesale milk in cans). Although 

 his mileage per horse (8 miles) is higher than most of the dealers, his ex- 

 ceptionally hea\'y delivery, 45.8 quarts per mile, helps to bring his retail 

 cost dowTi to 1.45 cents per quart. Of the producers. No. 23 delivers at 

 less cost than others in the group, although his mileage is 15 per horse; 

 this is accounted for by the large load hauled — 230 retail quarts per 

 horse — and his comparatively small overhead charges. Producer No. 9 

 carries 520 quarts on two wagons. His horse load is good and his delivery 

 per mile (29.3 quarts), retail and wholesale, is larger than any other pro- 

 ducer in the group — ■ in fact, nearly 50 per cent, above the average. 



Table XII will repay careful study. The analysis of cost per 1,000 

 quarts of milk delivered daily is excellent for comparative study and 

 reveals very striking individual variations. No. 13, who uses four horses 

 and travels 18 miles, with an average load of 107 quarts per horse to 

 deUver 430 quarts daily, has high cost items in all respects. His labor 

 and working capital accounts are nearly thrice those of No. 14 and his 

 other items twice as great. Dealer No. 24 makes up for his high invest- 

 ment and large depreciation and overhead costs by a low maintenance 

 expense and a small labor bill. His labor charge is only one-half that of 

 No. 13, and S700 less per 1,000 quarts than that of the average producer. 



The efficiency of No. 14 has been noted above. His economies extend 

 to every division of his business. His labor bill is e.xtremely small and 

 except for horse feed his maintenance costs are very low. 



