DISTRIBUTION OF MILK 125 



There are numerous reasons for such variations in costs 

 as are shown in these tables. One reason is that of the use 

 of different trade channels in varying proportions, as 

 shown in the discussion of Borden's costs above. Size 

 of business is another factor making for differences in costs, 

 although there is apparently not always a close correlation 

 between size and costs. Table XXV shows a somewhat 

 smaller cost for the two middle groups than for either the 

 smallest or the largest in size, whereas the largest appar- 

 ently has the highest costs. Table XXVI, however, in- 

 dicates that the plant expense is lowest for the largest 

 concerns, while Table XXVII would indicate that the 

 delivery cost of the same group is somewhat higher in 

 the case of the larger dealers. The plants of medium size 

 again have the advantage. The figures recently published 

 in the report on the investigation of the milk supply of 

 Rochester, New York, indicate that the labor costs per 

 quart vary in much the same way as do the total costs 

 shown by the Massachusetts study as set forth in Table 

 XXIV above, namely, that the middle group operates 

 somewhat more cheaply than do the smaller dealers, while 

 the highest costs of all are those of the larger dealers. Be- 

 cause of their large volume of business the latter are able 

 to operate on very narrow margins of profit. Table XXIX 

 gives the results of the Rochester survey. 



In addition to variations in costs arising out of type of 

 business, size of business, etc., there is the whole question 

 of the relative efficiency of dealers. Properly coordinating 

 the various items of labor and equipment in a complex busi- 

 ness which must be adjusted to local conditions requires a 

 high degree of business skill. Methods of assembling and dis- 

 tributing also make a difference, as do also local marketing 

 conditions arising out of the degree of concentration in the 

 business, demands of the consumer for special service, etc. 



