MILK SURVEY OF THE CITY OF ROCHESTER 



159 



cost of milk purchased from the farmer has been added to the other 

 costs in the list. 



The price paid to the producer for milk during the month of August 

 when these figures were obtained was .072551. Adding this price to the 

 other items of expense for each class of milk sold in Rochester, including 

 retail bottled milk, wholesale bottled milk and wholesale canned milk, 

 the entire cost of handling Rochester milk is obtained. The selling price 

 and the profit and loss are shown in Table No. 85. 



TABLE NO. 85 



TOTAL COST PER QUART (THREE CLASSES) OF ROCHESTER MILK. 



AUGUST, 1919 



From Table No. 85 it appears that during the month of August there 

 was an actual loss on all three classes of milk sold by all dealers in the 

 City of Rochester. While these losses were slight, yet they constitute 

 convincing evidence that, under present conditions, the conduct of the 

 business in Rochester at the prices stated was not profitable. 



It must be borne in mind that the month of August is what is known 

 as a short month ; that is to say, due to the vacation period, the quantity 

 of milk sold in Rochester is less than the normal quantity demanded by 

 the city. It has been stated that the volume of milk required by the city 

 averages at least 10 per cent, more than the volume of milk sold in 

 August. If this is so, such an increase in volume would wipe out the losses 

 noted in the above table and would enable the milk dealers to make a 

 moderate profit during some months of the year. This could only be 

 accomplished, however, through an increase in the retail price and pro- 

 vided the price paid to the producer did not correspondingly increase. 



The report of the expert cost accountants who examined the cost 

 accounts of four of the large dealers in Rochester for the business trans- 

 acted during the year ending December 31, 1918,' shows that one dis- 

 tributor made an annual profit of $3,824.43; another an annual loss of 

 $19,374.93; another a profit of $3,147.92; and another a loss of $2,156.30. 



