AN ECONOMIC STUDY OF DAIRYING 



butterfat produced. These values would have been higher in 1920, due 

 to a higher price level for all commodities. The data are given in table 28 : 



TABLE 28. CAPITAL INVESTED FOR THE PRODUCTION OF 11,385,590 

 OF MILK CONTAINING 457,223 POUNDS OF BUTTERFAT, 149 HERDS 



POUNDS 



Effect of changes in the price of labor, of feed, and of other factors, 

 on the cost of milk production 



The cost of producing milk for any particular farm or for any region 

 is not constant. Whenever the price of cows, the price of feed, the value 

 of land, or wages, change, then the cost of milk production also changes. 

 Hence, when interpreting results of milk-production studies, it is important 

 to keep in mind the possible effect of such changes on cost. 



In table 29 are shown the approximate changes in cost made by the 

 change of a single item, provided all other costs remain constant. An 

 increase in any item, however, is accompained by changes in practically 

 all other items. For example, if any cost increases, the cost of cows, and 



TABLE 29. EFFECT OF CHANGES IN PRICES OF LABOR, FEED, AND OTHER 

 FACTORS, ON COST OF PRODUCTION WHEN THE ENTIRE HERD is CONSIDERED 



Would change on these farms 



