214 TWENTY-FIFTH ANNIVERSARY REPORT. 
An explanation of how the different money values of the milk 
given in the above table are reached is now given. 
The final test of a cow’s value for dairy purposes is the amount 
of profit to be derived from her. In calculating the money value 
of milk, we may be guided solely by the amount of milk produced, 
allowing a fixed price for a pound of milk, regardless of composi- 
tion; or, we may consider the composition of the milk and fix a 
price which shall be dependent upon the composition. In calcu- 
lating the money value of milk as based on its composition, we 
can use the total solids of the milk or the fat alone. 
For the sake of comparison, therefore, we give three values for 
milk in the foregoing tables: First, the money value of milk cal- 
culated on the basis of 234 cents per quart, or 1.28 cents per pound; 
second, the money value of the milk calculated on the basis of the 
milk-solids at 9% cents per pound; and, third, the money value of 
the milk calculated on the basis of milk-fat at 2614 cents per pound. 
If we take the value of all the milk produced by all the cows as 
calculated at 1.28 cents per pound and divide this by the total num- 
ber of pounds of milk-solids produced by all the cows, then we 
get, as the average selling-price of one pound of milk-solids, 9% 
cents. In other words, with milk selling at 1.28 cents per pound, 
milk-solids have an equivalent value of 9% cents per pound. Ina 
similar way, milk-fat has an equivalent value of 26% cents per 
pound. 
The following expirntea shows how the figures representing 
_ profits from milk are derived. 
‘In considering the profit derived from selling milk, we must fix 
on a uniform system of valuation. We have presented calcula- 
tions based on three different methods for fixing the money value 
of milk, when sold for consumption as milk. Which of these 
methods will serve our purpose most fairly for making a compar- 
ison of the approximate value of milk? While the milk-fat 
furnishes the only fair and practicable basis for determining the 
value of milk that is to be made into butter or cheese, and while 
this method could also be utilized in enabling us to make a valua- 
tion of milk that is to be sold for consumption as milk, we shall 
probably approximate more closely the actual market value of milk 
as now sold, by making the milk-solids our basis of valuation. 
Therefore, in making our comparison of profits derived from selling 
milk, we will make use of the value furnished by this method of 
calculation. If from the selling value of the milk, thus found, we 
