458 MANUAL OF MILK PRODUCTS 



cost of buildings and equipment will, of course, vary with the 

 purchase of superior or inferior materials and workmanship, as 

 well as size of the plant, and, in some measure, the kind of con- 

 densed milk to be produced. In any case, however, the build- 

 ings should be thoroughly substantial, more so than is com- 

 monly considered necessary for a creamery or a cheese factory. 

 The major part of the equipment is of a very highly specialized, 

 more or less complicated, and very expensive type. The proper 

 operation of the equipment, especially the vacuum pan, and 

 the sterilizer when the product is sterilized in cans, calls for a 

 high degree of skill and large experience if serious losses are to 

 be avoided and a standardized legal product is to be produced. 



The cost of buildings, equipment, and operation of a plant 

 for the manufacture of evaporated milk (unsweetened condensed 

 milk for household use) will illustrate the capital required for 

 the manufacture of any other form of condensed milk. Some 

 reliable authorities have conservatively estimated that adequate 

 buildings and equipment for a minimum production on a com- 

 mercial scale would cost in the neighborhood of $25,000, exclu- 

 sive of working capital. The markets for condensed milk at 

 best are very unstable. Frequently the manufactured product 

 must be held several months before it is marketed. In the 

 meantime the plant must be kept in operation, for which a very 

 considerable surplus capital must be provided. The same 

 authorities estimate this item at $10,000. 



It therefore appears that in establishing and operating a milk 

 condensery capital to the amount of at least $35,000 must be 

 provided. That this estimate is conservative is indicated by 

 the fact that manufacturers of condensed milk have stated 

 that a capital of $50,000 is usually necessary to operate a con- 

 densed-milk factory. 



Sixth. Commercial success in any manufacturing enterprise 

 usually requires much more than merely placing the product 

 upon the market. A demand for the product must be firmly 



