CHART NQ3 



RETURNS PER HUNDRED WEIGHT OF MILK NECESSARY 

 TO REPAY CASH INVESTMENT- IN 5 AND 10 YEAR PERIODS 



l.20r 

 I.IO 

 1.00 



g .90 



u. 

 o 



h- 

 X 

 O 

 liJ 



(£ 

 O 



Z 



X 



q: 

 u 



0. 



</) 



z 

 a: 



3 



.80 



,70 



.60 



.50 



.40 



ui 



'^ .30 



.20 

 .10 



5YRa 

 10 YRS. 



9d 20 40 60 80 100 20 40 60 60 100 20 40 60 80 100 



PERCENTAGE OF TANK UTILIZATION 



on current production plus an emergency allowance, or on estimated herd 

 expansion in the forseeable future. 



The difficulties implied by these estimates are illustrated in Twining's 

 studyf which tabulated the reasons given by producers for choosing a par- 

 ticular tank size. The majority based their choice on present or past pro- 

 duction followed by a large number who attempted to estimate emergency 

 requirements as well as every-other-day pickup. Of those in the first group, 

 19 out of 26 producers could handle two milkings only at peak production 

 which allows them little adjustment in size of assembly operations without 

 additional investment. 



Examples of current operations recently started in Massachusetts show 

 the varying degrees to which farm tank capacity is utilized. Some producers 

 investing in a 150-gallon tank use only 43 percent of capacity at peak pro- 

 duction periods, while another example indicated only 32 percent of utili- 

 zation. 



Larger producers seemed to make better estimates of their tank-size 

 requirements because the percent of capacity used is greater for the tanks 



fOpus cit. 



10 



