34 BULLETIN 849, U. S. DEPARTMENT OF AGRICULTURE. 



Great variations in investments in plants of the same group were 

 noted. In the group handling from 251 to 500 gallons of milk daily 

 this variation was from $600 to $10,000. The wide variation was 

 largely due to the fact that some of the plants were old wooden build- 

 ings not at all suitable for the purpose, while others were modern 

 buildings of permanent construction and in some cases much more 

 expensive than was necessary. 



It will be seen in Table 8 that while the average investment is di- 

 rectly proportional to the quantity of milk handled, the average in- 

 vestment per 100 gallons handled daily varies considerably. This 

 investment is the highest for plants handling less than 100 gallons. 

 Plants of that size usually have a relatively high overhead expense 

 on account of the investment in buildings, except when cheap or tem- 

 porary buildings are used. 



Plants handling from 101 to 250 gallons daily had an average in- 

 vestment of only $200 higher than plants handling 100 gallons or 

 less and also had the lowest investment per 100 gallons handled of 

 all groups studied. Apparently this size of plant is economical so 

 far as investment in building is concerned. As a general rule the in- 

 vestment per 100 gallons handled increases with the size of the plant 

 up to 10,000 gallons. This is due to a large extent to the fact that 

 the general tendency is for the larger-sized dealers to have more 

 elaborate plants. Although more expensive they serve as an adver- 

 tising medium. The plants handling more than 10,000 gallons were 

 equally well appearing, but the large quantity handled brought down 

 the investment per 100 gallons. Since these figures were obtained, 

 there has been a great increase in the cost of materials, labor, and 

 supplies. 



CONCLUSIONS. 



1. Conditions should be thoroughly investigated "and found to be 

 favorable before attempting to establish a milk plant. 



2. For large plants the assistance of a competent architect in 

 making plans is required. Plans for a small plant can often be 

 drawn without such aid. 



3. Favorable location of the milk plant is important. In general 

 there are three locations that may be selected for the plant: (1) In 

 a wholesale district; (2) in a down-town retail section; (3) in a 

 residential section. Each of these has its advantages and disad- 

 vantages. 



4. Plants may be classified, according to the way the milk is 

 handled, into 6 classes. Gravity plants are to be desired, but often 

 the labor required to operate plants of two or more stories is greater 

 than in 1-story plants. 



5. Large plants are usually of two or three stories. 



