254 MANAGEMENT OF DAIRY PLANTS 



jjer pound, the wholesale grocer from 1/4 to 3 cents and the re- 

 tail grocers from 3 to 5 cents per pound, and the transportation 

 company obtains from 1/4 to 2 1/2 cents per pound. 



Hibbard and Hobson '^ estimate that the farmer receives about 

 half of the money paid by consumers for cheese. The other half 

 of the consumers' price is divided among the middlemen, the 

 retailer getting about as much as the others. The amount of 

 money obtained by the middlemen should not be considered 

 entirely as profit. The various operations in the dealers' ware- 

 house cannot be carried on for less than 1/4 cent per pound. 

 The dealer pays the freight, paraffins the cheese, which costs 

 about 1/8 cent per pound, puts it into the car to be shipped, pays 

 office expenses, insurance, interest, etc., and storage if the 

 cheese has to be stored, which usually costs 1/8 cent per pound 

 for a month or less and from 3/8 to 1/2 cent per pound for three 

 months and up to six months. The dealers estimate that they 

 should realize on the average 5/8 cent on all the cheese they sell 

 (direct and stored) to come out even. 



The expense of storing more or less of the cheese cannot 

 be eliminated, as the proportion of cheese made to that sold 

 in each month of the year varies greatly. Figs. 28 and 29 ' illus- 

 trate the difference between production and shipments from 

 Wisconsin during the year 191 1. This situation necessitates 

 the storing of at least part of the cheese manufactured. 



C. COST OF MARKETING ICE CREAM 



Ice cream is usually sold by the manufacturer direct to the 

 retailer. The costs of marketing are therefore quite readily 

 determined, as the middlemen are practically eliminated. 



I. Cost of Shipping. — The distance for shipping ice cream 

 is rather limited because the product is perishable and the cost 

 of transportation heavy. A shipping distance of 200 miles may 

 well be considered as the limit, for if shipped any greater dis- 

 tance the cost and the inconvenience of repacking is involved, 

 and the cost of transportation is increased to such an extent 



' Bulletin 231, Wisconsin Experiment Station, 1913. 



