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Milk Prices and Cost of Milk Production

Dairy Husbandry Department, University of Illinois, Urbana, Illinois

ABSTRACT

Introduction

The present study pertains to the seasonal cost of producing milk for direct consumption. Numerous organizations in various parts of the United States have made from time to time many studies of the cost of milk production, but in most instances these data involve what is known as the year cost of milk production. Little or no attention has been given to the seasonal variations in the cost of producing this important commodity.

The question of seasonal variations in the cost of fat production was discussed briefly in 1914 before the American Farm Management Association and later the proceedings were published by the association.¹ The present study presents quantitative results which set forth in rather precise form the large variation in the cost of producing milk for urban consumption in the different months of the year.

Source of Data

The Department of Dairy Husbandry has been carrying on detailed cost-accounting investigations pertaining to various problems of dairy farm administration since 1912.

¹ Proceedings of 5th Annual Meeting of American Farm Management Assocaition.