HOW SOLVE THE PROBLEM? 



157 



established grades of milk more definite than would 

 otherwise be possible. 



COSTS AND PRICES * 



Here may be summed up the main considerations 

 relating to costs and prices. These may be conven- 

 iently shown as follows: 



FACTORS 



TENDING TO RAISE COSTS 



TENDING TO LOWER COSTS 



Increasing farm costs of feeds, 

 labor, and other necessaries 



Agricultural inefficiency 



Increasing distances and rates of 

 transportation 



Improvement of dairying 



methods 

 Greater efficiency of milk plant 



machinery and methods and 



of distribution (all favored by 



concentration) 



Increasing city expenses of dealer , 

 Sanitation Simplification of sanitary require- 



ments 



TENDING TO ADJUSTMENT OF COSTS AND PRICES 



Recognition of grades 

 Organization of fanners 



The above is simply a view of salient features with 

 the omission of considerations as to supply and de- 

 mand, adjustment of railroad rates, and other compli- 

 cating factors. 



Regarding the general level of milk prices, the im- 

 pression got from considerations set forth in the last 

 chapter is that, at time of present writing, costs are 



* Cf . Appendix D, Costs and Prices. 



