8 



Since the food cost per cow per year is one-half, and with 

 high-producing cows more than one-half, of the total cost of 

 keeping a cow, it can readily be seen- from the above table 

 that, although the price of milk to-day is higher to the 

 farmer, it is not in proportion to the increase in the cost of 

 feed, and consequently the farmer in 1912 had less income 

 from his cows than he had in 1904. 



Add to this the increased cost of cows, which in the same 

 period probably amounted to 30 per cent., the increase in 

 wages probably from 25 to 30 per cent., and the additional 

 labor required due to more stringent regulations, and it can 

 readily be seen that at the present time the farmer is pro- 

 ducing milk below the cost of production even to a greater 

 extent than in 1904. 



This does not mean that the farmer has actually paid out 

 more money at the end of the year than he has received for 

 dairy products sold, but it means he has accejjted an interest 

 less than 5 per cent, on his investment in buildings, equipment 

 and cows; he has accepted low wages for his oivn labor and 

 the labor of his family, and has marketed his crops fed to the 

 cotvs at less than market prices. These are the main factors 

 which have made it possible for him to produce milk at such 

 an apparent loss. 



No manufactured article will for any length of time be 

 sold below the cost of manufacture. The dairy farmer 

 cannot continue to produce milk at a cost of 4.92 cents per 

 quart and sell it for about 4 cents per quart. Unless the 

 price is increased to the farmer the production of milk neces- 

 sarily will decrease. A shortage of milk means a higher 

 price for milk to the consumer. Beef and eggs have almost 

 doubled in price in the last ten years, and the consumer is 

 still buying both. 



An increase in price of only 1 cent per quart to the farmer 

 would encourage the dairy farmer to continue to produce 

 milk, which at this time is of extreme importance to the 

 future development of the dairy business. The 1-cent in- 

 crease to the consumer which would necessarily follow would 

 tend to prevent a threatening shortage of milk in Boston 

 and prevent the price of milk soaring to the same relative 

 high level as eggs and beef. 



