16 



BULLETIN 919, TJ. S. DEPAETMENT OF AGRICULTURE. 



AVERAGE COMPARED WITH "BULK-LINE" COSTS. 



During the last few years attempts have been made to use the aver- 

 age cost of production as a basis for determining the selling price of 

 milk. Where the average, cost basis is recommended it is evident 

 that practically all those producers whose costs are above the average 

 will find the profits reduced if they are so fortunate as not to suffer 

 an actual loss. This will tend to discourage production and reduce 

 the available supply. 



In~using the bulk-line method for determining a necessary price, 

 only a certain number of the extremely high-cost producers may have 

 costs above this price. The use of this method is illustrated in 

 Table 9. 



Table 9. 



-Net cost, quantity, and per cent of milk produced by each herd, two 

 winters and two summers. 



Winter 1917-18. 



Winter 1919-20. 





Milk produced. 





Milk produced. 



Cost 

 per 100 









Cost 

 per 100 





















pounds. 



Quan- 



Per cent 



Cumula- 



pounds. 



Quan- 



Per cent 



Cumula- 





tity. 



of total. 



tive. 





tity. 



of total. 



tive. 





Pounds. 



Per cent. 



Per cent. 





Pounds. 



Per cent. 



Per cent. 



SI. 91 



67,036 



4.2 



4.2 



$2.50 



156, 032 



8.8 



8.8 



2.26 



113, 716 



7.2 



11.4 



2.80 



113,302 



6.4 



15.2 



2.39 



88, 736 



5.6 



17.0 



2.88 



144,577 



8.2 



23.4 



2.43 



60, 595 



3.8 



20.8 



2.96 



127, 348 



7.2 



30.6 



2.56 



144,362 



9.1 



29.8 



3.10 



66, 898 



3.8 



34.4 



2.63 



66,956 



4.2 



34.1 



3.11 



90, 257 



5.1 



39.5 



2.69 



195, 756 



12.3 



46.4 



3.16 



213, 169 



12.1 



51.6 



2.80 



99, 931 



6.3 



52.7 



3.20 



92, 420 



5.2 



56.8 



2.84 

 2.86 



82, 857 

 131,097 



5.2 



8.2 



57.9 

 66.1 



13.25 

 3.30 









202, 567 



11.5 



68.2 



2.89 



113,785 



7.1 



73.3 



3.31 



56,349 



3.2 



71.4 



12.91 

 3.02 









3.48 

 3.50 



54,677 

 62,631 



3.1 

 3.6 



74.5 

 78.1 



48, 222 



3.0 



76.3 



3.29 



91,896 



5.8 



82.1 



3.60 



100, 453 



5.7 



83.8 



3.47 



112, 754 



7.1 



89.2 



3.83 



39, 680 



2.2 



86.0 



3.59 



80,523 



5.1 



94.2 



3.95 



113,973 



6.4 



92.5 



3.82 



61,283 



3.9 



98.1 



4.01 



79, 539 



4.5 



97.0 



4.85 



30, 126 



1.9 



100.0 



4.61 



53, 581 



3.0 



100.0 



Summer 1917-18. 



Summer 1919. 



$1.06 



174,306 



7.5 



7.5 



$1.14 



100, 428 



4.0 



4.0 



1.24 



83,089 



3.6 



11.0 



1.18 



210, S13 



8.4 



12.4 



1.25 



85, 339 



3.7 



14.7 



1.30 



123,893 



4.9 



17.4 



1.31 



92, 050 



3.9 



18.6 



1.33 



145,812 



5.8 



23.2 



1.33 



160, 589 



6.9 



25.5 



1.36 



89,853 



3.6 



26.7 



1.34 



166, 339 



7.1 



32.6 



1.39 



177,018 



7.1 



33.8 



1.35 



132, 277 



5.7 



38.3 



1.42 



211,960 



8.4 



42.2 



1.38 



167, 584 



7.2 



45.5 



1.60 



89,982 



3.6 



45.8 



1.39 

 1.40 



112,097 

 213, 498 



4.8 

 9.1 



50.3 

 59.4 



U.60 

 1.62 









309,716 



12.3 



58.2 



U.50 

 1.53 









1.64 

 1.70 



98, 174 

 102,351 



3.9 

 4.1 



62.1 



66.2 



63, 466 



2.7 



62.1 



1.57 



462, 128 



19.8 



81.9 



1.74 



89, 637 



3.6 



69.8 



1.65 



112,066 



4.8 



86.7 



1.77 



167, 586 



6.7 



76.4 



1.93 



136, 413 



5.8 



92.6 



1.79 



92,741 



3.7 



80.1 



1.95 



125,893 



5.4 



98.0 



1.87 



132, 253 



5.3 



85.4 



3.48 



47, 846 



2.0 



100.0 



2.03 



98, 741 



3.9 



89.3 











2.12 



91,808 



3.7 



93.0 











2.32 



175,642 



7.0 



100.0 



i Average. 



