J Szupr., 1897.] QUEENSLAND AGRICULTURAL JOURNAL. 217 
Creamery Caleulations on the Basis of Butterfat. 
BF. L. Kenn, dairy instructor of the Oregon Agricultural College, gives the 
Tacoma Dairyman an interesting explanation which is calculated to meet the 
confusion in the minds of many who deliver milk to creameries, as to why their 
returns are based on butterfat instead of upon merchantable butter :— 
“Mo illustrate the fairness of payment on the basis of fat delivered, take 
an example: Suppose a creamery has received during a month, from all patrons, 
such an amount of milk as will produce 3,846 lb. of butterfat. Suppose, also, 
that this fat has produced 4,487 1b. butter, which has been sold and netted the 
company, after all expenses of making, marketing, &c., have been paid, the sum 
of $538'44. Now, if payment is made with the butterfat as a basis, the price 
to be paid per lb. will be the quotient arising from dividing the net proceeds 
($538'44) by the number of pounds of butterfat received (3,846 lb.) ; 
$538:44, + 3,846 = 14c., the price to be paid per lb. for the butterfat. But 
if payment were paid on the basis of the pounds of butter made, the price 
per lb. would be determined by dividing the net proceeds ($538'44) by the 
number of pounds of butter made (4,487) ; $5884 + 4,487 = 12c., the net 
value of the butter per lb. The overrun in this case would be 4 or 16% per 
cent. (4,487 + 3,846 = 12). 
“ Now, suppose C has delivered to the creamery during the month 3,150 lb. 
of milk testing 4 per cent. Then 3,150 lb. x ‘04 = 126 lb., the amount of 
butterfat he has delivered. Then 126 x 14 = 147 lb., the amount of butter 
O's milk would make. Now, supposing the creamery is paying on the butter- 
fat basis, the amount of C’s cheque would be 126 lb.x 14¢c. = $17-64. But if 
payment were made on the basis of the amount of butter the milk would make, 
his cheque would be 147 lb. x 12c. = $17°64. 
“The purpose of the above figures is to show that while the cheque, under 
the butterfat method, calls for a less number of pounds than it does under the 
actual butter method, the price in the former case is enough higher than it is 
in the latter to make the amount of the cheque the same in each case. The 
advantage of paying on the basis of the butterfat delivered rather than the 
actual butter is that the former is simpler, hence saves time and liability of 
errors, both of which are important, especially where the buttermaker has the 
bookkeeping to attend to.” 
