321. Buying milk.—The method of paying for the milk differs in the various cheese sections and factories. At some factories a stated price is paid for the milk or the fat. This is usually in terms of 100 pounds of milk or for each pound of fat. This is the practice with concerns possessing large capital. Other factories make the milk into cheese and after each sale, the expenses necessary for operating the factory are deducted and the remainder of the money divided among the patrons. This money is divided either on the basis of the number of pounds of milk or of fat delivered. The question arises as to which is the better method to buy milk for cheese-making, or the fairest way to divide the money received from a sale of cheese.
322. Cheese yield basis of buying milk.—Let us suppose that at a cheese factory there were five patrons: (A) delivered 100 pounds of milk testing 3 per cent fat; (B) 100 pounds of milk testing 3.5 per cent fat; (C) 100 pounds of milk testing 4.0 per cent fat; (D) 100 pounds of milk testing 4.5 per cent fat; and (E) 100 pounds of milk testing 5.0 per cent fat. Table XXVI shows the actual number of pounds of cheese containing 37 per cent moisture which 100 pounds of milk containing different percentages of fat will produce. The cheese sold net for 20 cents a pound.
TABLE XXVI
| Showing Payments for Milk Based on the Actual Yieldof Cheese | |||||||
| Patron | Pounds of Milk Delivered | Per Cent of Fat in Milk | Yield of Cheese Containing 37% Moisture | Price a Pound | Amount Due Each Patron | ||
| A | 100 | 3.0 | 8.30 | $.20 | $1.66 | ||
| B | 100 | 3.5 | 9.45 | .20 | 1.89 | ||
| C | 100 | 4.0 | 10.60 | .20 | 2.12 | ||
| D | 100 | 4.5 | 11.74 | .20 | 2.34 | ||
| E | 100 | 5.0 | 12.90 | .20 | 2.58 | ||
| Total | 20.0 | 5.0 | 52.99 | .20 | 10.59 | ||
This table shows the amount of money each patron should receive if the money were divided on the basis of the actual yield of cheese.
323. Fat basis for payment of milk.—Let us suppose that the same five patrons delivered the same quantity of milk testing the same percentages of fat and that the cheese sold for the same price. A total of 20 pounds of fat was delivered and the cheese sold for $10.598; by dividing this amount by the pounds of fat delivered, the price or value of one pound of fat is found to be $.5299. Multiplying the pounds of fat each patron delivered by the price a pound would give the amount of money due each patron.
TABLE XXVII
| Showing Payments for Milk Based on Fat-content ofMilk | |||||||
| Patron | Pounds of Milk Delivered | Per Cent of Fat in Milk | Pounds of Milk Delivered | Value of Pound of Fat | Amount Due Each Patron | ||
| A | 100 | 3.0 | 3.0 | $.5299 | $1.58 | ||
| B | 100 | 3.5 | 3.5 | $.5299 | $1.85 | ||
| C | 100 | 4.0 | 4.0 | $.5299 | $2.12 | ||
| D | 100 | 4.5 | 4.5 | $.5299 | $2.38 | ||
| E | 100 | 5.0 | 5.0 | $.5299 | $2.65 | ||
324. Weight basis or pooling method for payment of milk.—By this system, each patron would receive an equal price for 100 pounds of milk. If the same supposition is taken as before, there would be 500 pounds of milk delivered and the cheese sold for $10.59; each 100 pounds of milk would be worth $2.12. As each patron delivered an equal weight of milk, each would receive an equal amount of money, or $2.12.