16 
BULLETIN 919, U. S. DEPARTMENT OF AGRICULTURE. 
AVERAGE COMPARED WITH "BULK-LINE" COSTS. 
During the last few years attempts have been made to use the aver- 
age cost of production as a basis for determining the selling price of 
milk. Where the average cost basis is recommended it is evident 
that practically all those producers whose costs are above the average 
will find the profits reduced if they are so fortunate as not to suffer 
an actual loss. This will tend to discourage production and reduce 
the available supply. 
In "using the bulk-line method for determining a necessary price, 
only a certain number of the extremely high-cost producers may have 
costs above this price. The use of this method is illustrated in 
Table 9. 
Table 9. — Net cost, quantity, and per cent of milk produced by each herd, two 
winters and tivo summers. 
Winter 1917-18. 
Winter 1919-20. 
Milk produced. 
Milk produced. 
Cost 
per 100 
Cost 
per 100 
pounds. 
Quan- 
Per cent 
Cumula- 
pounds. 
Quan- 
Per cent 
Cumula- 
tity. 
of total. 
tive. 
tity. 
of total. 
tive. 
Pounds. 
Per cent. 
Per cent. 
Pounds. 
Per cent. 
Per cent. 
SI. 91 
67,036 
4.2 
4.2 
$2.50 
156,032 
8.8 
8.8 
2.26 
113, 716 
7.2 
11.4 
2.80 
113,302 
6.4 
15.2 
2.39 
88,736 
5.6 
17.0 
2.88 
144,577 
8.2 
23.4 
2.43 
60, 595 
3.8 
20.8 
2.96 
127,348 
7.2 
30.6 
2.56 
144,362 
9.1 
29.8 
3.10 
66,898 
3.8 
34.4 
2.63 
66,956 
4.2 
34.1 
3.11 
90, 257 
5.1 
39.5 
2.69 
195,756 
12.3 
46.4 
3.16 
213, 169 
12.1 
51.6 
2.80 
99,931 
6.3 
52.7 
3.20 
92, 420 
5.2 
56.8 
2.84 
2.86 
82, 857 
131,097 
5.2 
8.2 
57.9 
66.1 
13.25 
3.30 
"262 "567" " 
""ii.'s" 
""68." 2" 
2.89 
113, 785 
7.1 
73.3 
3.31 
56,349 
3.2 
71.4 
12.91 
3.02 
3.48 
3.50 
54,677 
62, 631 
3.1 
3.6 
74.5 
78.1 
"48." 222" 
3. "6" 
""*76."3" 
3.29 
91,896 
5.8 
82.1 
3.60 
100, 453 
5.7 
83.8 
3.47 
112,754 
7.1 
89.2 
3.83 
39, 680 
2.2 
86.0 
3.59 
80,523 
5.1 
94.2 
[ 3.95 
113,973 
6.4 
92.5 
3.82 
61,283 
3.9 
98.1 
4.01 
79, 539 
4.5 
97.0 
4.85 
30, 126 
1.9 
100.0 
4.61 
53, 581 
3.0 
100.0 
Summer 1917-18. 
Summer 1919. 
$1.06 
174,306 
7.5 
7.5 
$1.14 
100, 428 • 
4.0 
4.0 
1.24 
83, 089 
3.6 
11.0 
1.18 
210,813 
8.4 
12.4 
1.25 
85,339 
3.7 
14.7 
1.30 
123, 893 
4.9 
17.4 
1.31 
92,050 
3.9 
18.6 
1.33 
145,812 
5.8 
23.2 
1.33 
160, 589 
6.9 
25.5 
1.36 
89, 853 
3.6 
26.7 
1.34 
166,339 
7.1 
32.6 
1.39 
177,018 
7.1 
33.8 
1.35 
132, 277 
5.7 
38.3 
1.42 
211,960 
8.4 
42.2 
1.38 
167, 584 
7.2 
45.5 
1.60 
89,982 
3.6 
45.8 
1.39 
1.40 
112,097 
213, 498 
4.8 
9.1 
50.3 
59.4 
1 1.60 
1.62 
......... 
'369,'7i6" 
""58." 2" 
11.50 
1.53 
1.64 
1.70 
98, 174 
102, 351 
3.9 
4.1 
62.1 
66.2 
"63," 466'" 
2.Y" 
""62.Y" 
1.57 
462, 128 
19.8 
81.9 
1.74 
89, 637 
3.6 
69.8 
1.65 
112,066 
4.8 
86.7 
1.77 
167, 586 
6.7 
76.4 
1.93 
136, 413 
5.8 
92.6 
1.79 
92, 741 
3.7 
80.1 
1.95 
125,893 
5.4 
98.0 
1.87 
132, 253 
5.3 
85.4 
3.48 
47,846 
2.0 
100.0 
2.03 
98, 741 
3.9 
89.3 
2.12 
91, 808 
3.7 
93.0 
2.32 
175, 642 
7.0 
100.0 
Average. 
