4 MILK PRODUCTION COST ACCOUNTS 



not the purpose here to show average conditions. Instead of 

 attempting to give any average cost, the author wishes to em- 

 phasize the fact that costs vary greatly and are determined 

 by certain definite conditions. It is no more reasonable to 

 say that it costs five cents to produce a quart of milk than to 

 say that it costs five cents to make a box. The manufacturer 

 of boxes before stating a price asks the size of the box, the 

 kind of material to be used, whether the sides are to be planed, 

 whether the box is to be made and used in the lumber and mill 

 region of Washington State or in New York City, and also 

 whether lo boxes are to be made in spare time or 10,000 made 

 at once. Likewise the milk producer should ask in quoting or 

 estimating a price whether it is for 3 or 5 per cent butter- 

 fat milk, whether it is to be produced from tuberculin-tested 

 cows and in clean barns by clean labor working under clean 

 methods or by any cows and without particular care in pro- 

 duction, whether it is to be produced where hay is worth $10 

 per ton or $20 and grain $25 or $35, whether conditions are 

 such that the cows must be kept in the stable all or nearly all 

 the year for lack of pasture or whether they can feed on grass 

 six or more months of the year, and perhaps on land unfit for 

 other crops. It should also be known whether it is a price 

 for a small quantity produced as a side line or for a large 

 quantity produced as a specialty. It is to get at these very 

 items of cost, etc., that a cost system is needed. 



The above diagram applies where an intensive feeding sys- 

 tem is practiced — that is, where considerable grain is in- 

 cluded in the ration. Where summer dairying is the practice 

 and where roughage forms a large part of the feed the pro- 

 portion of labor and indirect cost of production would be 

 greater. Also, in regions where intensive systems are prac- 

 ticed and a soiling system is followed the feed may cost less 

 and labor more. Expensive cattle and buildings increase the 

 proportion of indirect cost. The over-capitalized dairies are 

 shown by the amount of overhead cost. Some cows are bought 

 at such high prices and housed in expensive buildings that no 

 system of feeding, no possible production, and no reasonable 

 price for the milk could make them profitable. 



