52 MILK PRODUCTION COST ACCOUNTS 



Months. 1916. igiS- 



April S1.70 $i.7S 



May 1.40 1.40 



June 1.40 1.40 



July 1.60 1.50 



August 1.7s 1.65 



September 1.80 i.7S 



This is for milk testing 4.5 per cent, which is one-half per 

 cent less than the standard used herein in calculating feed 

 cost. They, however, allow a premium of 4 cents per hundred 

 pounds for each one- tenth per cent butter-fat above 4.5 per 

 cent. Five per cent milk would be paid for at a rate of 20 

 cents more per hundred. Still further premiums are offered 

 for milk of Grade A, which are provided for in these cost 

 calculations in preceding pages. The winter prices are pre- 

 vailingly higher, but the production then is less. The average 

 price of milk of Grade A, testing 5 per cent, in New York is 

 $2 per hundred pounds. In some sections this price is less. 



It should be further pointed out that the prices for feeds 

 are somewhat lower than prevail at the present time. At 

 prevailing prices for feeds the costs would be increased to 

 $90.49, and the total costs to $143.36, and the profit per cow 

 may be determined as follows: 



Sale price of 8,500 pounds of milk $170.00 



Cost of production of 8,500 poimds of milk 142-95 



Profit per cow §27.05 



In a 20-cow dairy the profit for the year on this basis is 

 $532.80, in addition to an income of 5 per cent for aU capital 

 used in the enterprise. The assumed total capital invested is 

 about $9,000. When the disease risk to the animals is con- 

 sidered, the profit under these conditions is not great, though 

 satisfactory. 



For the standard herein, however, unusually high-producing 

 cows were selected. The average production of the cows of 

 the United States is only about 3,000 pounds. Animals of 

 this sort present a very different outlook for the business. 

 We may assume that cows of this standard are used to supply 

 milk to the same market, that is. Grade A. By referring to a 



