2 BULLETIN 639, U. S. DEPARTMENT OF AGRICULTURE. 



In the present study x is presented a general analysis of the market 

 milk business as conducted in Detroit, Mich., during the year 1915, 

 with a view of indicating some of the fundamental explanations of 

 existing market conditions and milk marketing practices in the 

 larger American cities. The cost of milk, wages, and many items of 

 expense have increased greatly since the data were obtained, and for 

 that reason no attempt has been made to show absolute cost and 

 profit figures. Some cost analyses are presented, however, in a way 

 that will point out fundamental tendencies not dependent upon 

 transitory changes in prices and which help to explain some of the 

 prevailing market practices. 



The city of Detroit, Mich., was selected for the study primarily 

 because in many respects milk marketing methods in that city are 

 representative of those in other large cities of the United States. 

 Since the pasteurization of market milk had been made compulsory 

 by ordinance in Detroit three months before the investigations were 

 begun, the selection of that city also permitted a study of the effects 

 of compulsory pasteurization upon the number of dealers engaged in 

 the business and upon the methods of handling and distributing 

 milk. 



MARKET DEMANDS AND SOURCES OF SUPPLY. 



The average quantity of market milk consumed daily in Detroit 

 during August, 1915, was approximately 47,569 gallons, and of 

 market cream 5,953 gallons. Based upon an estimated population 

 of 600,000 this would provide approximately 0.63 of a pint of milk 

 and 0.08 of a pint of cream per capita daily. The consumption is 

 not uniform throughout the year, however. The shipments of milk 

 during May and June were the highest of the year, but the receipts 

 were in excess of the city consumption during those months. 



According to the records of one of the largest dealers, the market 

 demand for milk in per cent of the yearly consumption is shown 

 below by seasons: 



Per cent 



of total. 



Spring 26. 7 



Summer 30. 2 



Fall 20.9 



Winter 22. 2 



100 



It will be noted that the consumption during the summer months 

 was one-half higher than during the fall months. 



1 Most of the data upon which this study is based were collected during September and 

 October, 1915. Figures of total quantities of milk handled and general information con- 

 cerning the nature of the business of all the dealers -were obtained from the records of 

 transportation companies and the flies of the milk-inspection department of the Detroit 

 board of health. The cost analyses were based upon the records of certain typical dealers. 



