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 CIRCULATING COPY 
 
UNIVERSITY OF ILLINOIS 
 
 Agricultural Experiment Station 
 
 BULLETIN No. 269 
 
 THE MARKETING OF MILK 
 IN THE CHICAGO DAIRY DISTRICT 
 
 BY H. A. Ross 
 
 URBANA, ILLINOIS, JUNE, 1925 
 
FOREWORD 
 
 If marketing conditions for agricultural 
 products are to be improved, plans for improve- 
 ment must be built on a solid foundation of ascer- 
 tained facts, not upon opinion and guesswork. 
 This bulletin describes many of the significant 
 conditions surrounding the Chicago milk market, 
 the present agencies for distribution, and the 
 trend of consumption, with special reference to 
 the problem of surplus milk. 
 
 It is the purpose of the Agricultural Experi- 
 ment Station to collect and publish from time to 
 time similar facts concerning other agricultural 
 products. It is hoped that these will constitute a 
 sound basis for the improvement of marketing 
 facilities. 
 
 H. W. MUMFORD, 
 
 Director 
 
CONTENTS 
 
 PAGE 
 
 INTRODUCTION 461 
 
 THE CHICAGO MILK MARKET AND MARKETING AGENCIES 463 
 
 Types of Middlemen 465 
 
 The Milk Dealers' Bottle Exchange 467 
 
 THE CHICAGO DAIRY DISTRICT 469 
 
 Regional Production of Milk and Transportation Costs 469 
 
 Factors Tending to Retard the Extension of the Chicago Dairy District 473 
 
 Intensity of Dairying in the Inner and Outer Parts of the Chicago Dairy 
 District 478 
 
 MILK PRODUCTION IN THE CHICAGO DAIRY DISTRICT 479 
 
 Variation from Year to Year 480 
 
 Seasonal Variation in Production 483 
 
 Seasonal Production and Price 487 
 
 CONSUMPTION OF DAIRY PRODUCTS IN CHICAGO 489 
 
 Consumption in Different Sections of Chicago 490 
 
 Long-Time Trend of Consumption 494 
 
 Seasonal Variation in Consumption 495 
 
 Variation in Consumption by Days of the Week 498 
 
 Consumption of Milk as Affected by Temperature 500 
 
 Consumption of Milk as Affected by Price 503 
 
 THE PROBLEM OF SURPLUS MILK 510 
 
 Variation in Surplus from Year to Year 511 
 
 Relation Between Size of Business and Amount of Surplus 513 
 
 Seasonal Variation in Amount of Surplus 515 
 
 Daily Variation in Amount of Surplus 516 
 
 The Utilization of Surplus Milk 519 
 
 Relation Between Prices of Sweet Cream and Whole Milk 523 
 
 THE COURSE OF MILK PRICES 526 
 
 Alternative Markets for Milk 527 
 
 Price Determination 532 
 
 CONCLUSIONS 533 
 
 APPENDIX (Tables) 535 
 
ACKNOWLEDGMENT 
 
 To the many agencies that furnished the mass of data 
 embodied herein producers' organizations, milk dealers, 
 condenseries, creameries, cheese factories, railroads, meat 
 packers a word of acknowledgment is due. Special mention 
 should be made of the courtesy of several milk distributing 
 companies that supplied most of the detailed data. These 
 companies not only opened their books to the investigator 
 but were also generous in giving the time both of their execu- 
 tive and their accounting forces. 
 
 To the Illinois Agricultural Association, the Experiment 
 Station is indebted for a part of the funds for this inquiry. 
 The Association, realizing the need for a study of milk mar- 
 keting conditions, made provision for a half-time research 
 assistantship in dairy marketing at the University of Illinois 
 for the year 1922-23, and the funds so provided were used 
 to supplement those of the Experiment Station in carrying 
 forward this investigation. 
 
THE MARKETING OF MILK IN THE 
 CHICAGO DAIRY DISTRICT 
 
 BY H. A. Ross, Formerly Associate in Dairy Economy 
 
 INTRODUCTION 
 
 Almost all city milk markets at some time or other have exper- 
 ienced serious difficulties over the question of price. Producers usually 
 believe that the prices they receive for milk are too low, particularly 
 in relation to the prices paid by consumers. This belief has resulted in 
 the formation of many cooperative marketing organizations, some of 
 which have proved successful, while others have failed. 
 
 The Chicago market has not escaped the difficulties arising from 
 price disagreements. Dissatisfaction among producers has been mani- 
 fested by four milk strikes in the last nine years. Altho no strikes 
 occurred during 1921 or 1922, dissatisfaction was especially strong at 
 that time because the margin between the price paid by the consumer 
 and the price received by the producer was unusually wide (Fig. 1). 
 For many years the wholesale price to the producers amounted to 
 about 40 percent of the retail price. From 1917 to 1920, wholesale 
 prices rose more rapidly than retail prices (Fig. 2) so that the producer 
 received about half the consumer's dollar. For the next two years, 
 however, wholesale prices declined much more than retail prices and the 
 farmer's share fell to about a third. Higher prices during 1923 and 1924 
 have brought back the ratio of earlier years. 
 
 The present investigation was undertaken with the twofold aim of 
 analyzing the Chicago milk situation and of determining some of the 
 fundamental facts underlying milk marketing. It was thought that past 
 failures of cooperative marketing organizations were due in many 
 instances to lack of knowledge of the economic principles involved. 
 Much thought has been given in the past to the form of organization 
 but, unquestionably, too little attention has been paid to obtaining the 
 economic facts of milk marketing upon which ^to base sound marketing 
 practice. This study, therefore, intentionally passes over the question of 
 organization and deals only with the specific facts of marketing. It may 
 be stated at the outset that no all-sufficing remedy for the ills of the 
 situation is offered. Certain principles, however, are presented, based 
 on a careful statistical analysis of the data, which may assist in the solu- 
 tion of the problems. 
 
 The data, obtained for the most part during the year October, 1922, 
 to September, 1923, are of two kinds: (1) survey data obtained by the 
 
 461 
 
462 
 
 BULLETIN No. 269 
 
 [June, 
 
 issuance of questionnaires to all of the milk dealers in Chicago, and 
 (2) detailed data taken directly from the books of a few dealers. 
 Months of work in going over ledgers and other records yielded a large 
 amount of material for study. All this has been analyzed and the results 
 are presented in the various tables. Because of the keen competition 
 between milk companies in Chicago, the dealers required that many of 
 
 190X1904 J905 190 fi /<M7 /9MJ90.9 1310 1911 1912 1913 19/4 1915 1916 1917 1916 1919 1320 1921 1922 1923 
 
 FIG. 1. COMPARISON OF RETAIL PRICES OF MILK IN CHICAGO AND WHOLESALE PRICES 
 PAID TO PRODUCERS AT COUNTRY PLANTS 
 
 Prior to 1916 the retail price of milk remained unchanged for long periods, while 
 the price to the producers varied with the season and showed a slow upward trend. 
 From 1917 to 1920 the wholesale price rose more rapidly than the retail price. When 
 milk prices declined in 1920, the wholesale price fell more rapidly than the retail price, 
 resulting in an unusually wide margin. (See Tables A and B, Appendix, for monthly 
 prices.) 
 
 these figures be expressed as percentages, or in some form which would 
 not divulge the identity of the companies or the facts relating to any 
 individual business. Wherever possible, figures from different dealers 
 have been combined, and it has been the writer's earnest endeavor to 
 live up to the spirit of the agreement under which these valuable private 
 records were made available to the public. 
 
 It has seemed advisable to include some descriptive and explana- 
 tory material about the Chicago market and the dairy district in order 
 to give background to the study for those readers who may not be 
 familiar with the region. With this exception, an effort has been made 
 to leave out all discussion not bearing directly on the main subject. 
 
MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 463 
 
 The study is built about the problem of surplus milk. With this in 
 view, production and consumption are first studied separately. Consid- 
 erable attention is given to the demand side of the market, not because 
 it is considered the most important, but because very little is known 
 concerning it. The problem of surplus milk is next considered and this 
 is followed by a brief comparison of the Chicago milk prices and prices 
 of milk in the regions producing a surplus. Detailed tables not essential 
 to the text are given in the Appendix. 
 
 FIG. 2. INDEX NUMBERS REPRESENTING PRICES RECEIVED BY PRODUCERS FOR ALL MILK 
 
 DELIVERED AT COUNTRY PLANTS, AND DEALERS' MARGIN FOR HANDLING 
 
 THAT PART OF THE MILK RETAILED IN QUART BOTTLES 
 
 From 1917 to 1920 the producer received about SO percent of the consumer's dollar 
 as compared with about 40 percent before the war. During 1921 and 1922 his share 
 was less than the pre-war average. (See Tables C and D, Appendix, for monthly 
 index numbers.) 
 
 THE CHICAGO MILK MARKET AND MARKETING AGENCIES 
 
 The demand for any commodity in a given market is determined 
 by two factors: the number of people using the commodity and the 
 amount used by each. In the case of milk, the first of these factors is 
 measured approximately by the population of the city, because the use 
 of milk is almost universal. The second factor, the amount used per 
 person, is variable but, like wheat, the variation is far less than it is in 
 the consumption of the less-essential foodstuffs. Hence, the probable 
 increase in population may be taken to express roughly the probable 
 increase in the demand for milk. 
 
 The dairymen in the Chicago district are fortunate as regards the 
 prospect for increase of population, for the city gives every evidence of 
 
464 
 
 BULLETIN No. 269 
 
 {.June, 
 
 continuing its rapid growth. Eighty years ago it was a village with less 
 than 5,000 inhabitants. Today it is rapidly approaching the 3,000,000 
 mark (Table 1). If we include the numerous suburbs, which are really 
 a part of the Chicago market, it seems probable that the 1930 Census 
 will show approximately 3,500,000 milk-users in this great center. 
 
 In spite of the fact that the growing population of Chicago requires 
 each year an increasing amount of milk to supply its needs, the number 
 of milk distributors has been steadily decreasing. In 1915, according 
 to the Department of Health, there were 1,260 milk depots and 5,671 
 
 TABLE 1. CHICAGO AND SUBURBS AS A GROWING MARKET FOR DAIRY PRODUCTS 
 Total population, United States Bureau of the Census 
 
 Year 
 
 Chicago 
 
 Cook county 
 
 1840 
 
 4 470 
 
 10 201 
 
 1850 
 
 29 963 
 
 43 385 
 
 1860 
 
 109 260 
 
 144 954 
 
 1870 
 
 298 977 
 
 349 966 
 
 1880 
 
 503 185 
 
 607 524 
 
 1890 
 
 1 099 850 
 
 1 191 922 
 
 1900 
 
 1 698 575 
 
 1 838 735 
 
 1910 
 
 2 185 283 
 
 2 405 233 
 
 1920 
 
 2 701 705 
 
 3 053 017 
 
 stores handling milk. 1 By 1923 the number of depots had decreased 
 to 575, while the number of stores handling milk had increased 
 to 8,473 . 2 The decrease in the number of distributors may be attributed 
 largely to an order issued by the Commissioner of Health on July 22, 
 1916, requiring that, with the exception of certified milk, all milk sold 
 or used in Chicago be pasteurized. Many small dealers without pasteur- 
 izing equipment were forced out of business. Others arranged to buy 
 milk, already pasteurized and bottled, from the larger dealers. In a few 
 instances companies were formed for the express purpose of pasteur- 
 izing and bottling milk for a group of independent distributors, few of 
 whom operate more than one or two wagons. In 1923 there were 281 
 pasteurizing plants in Chicago as compared with 251 in 1915, 298 
 in 1916, 301 in 1917, and 270 in 1918. 
 
 Competition also has accounted for a part of the decrease in the 
 number of dealers. The advantage which the larger distributors have in 
 economy of operation and in facilities for handling surplus milk would 
 tend to drive the one- or two-wagon dealers out of business were it not 
 for the fact that in the small companies most of the labor required to 
 handle and deliver the milk is furnished by the dealer and his family. 
 
 1 Report of the Bureau of Food Inspection. Department of Health, City of Chicago, 
 1911-1918. Reprint Series No. 11, p. 893, 1919. 
 
 letter from Dr. J. P. Kilcourse, Chief, Bureau of Food Inspection, City of 
 Chicago, August 29, 1923. 
 
7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 465 
 
 If the same rate had been paid for this labor as was paid by dealers 
 dependent upon hired workers, the decrease in the number of dis- 
 tributors probably would have been more rapid than it has been. 
 
 An idea of the approximate size of the companies distributing milk 
 in Chicago may be obtained from Table 2. The companies are here 
 
 TABLE 2. VARIATION IN SIZE OF MILK DISTRIBUTING COMPANIES IN CHICAGO 
 Based on the number of wagons operated in 1923 
 
 Group 
 
 Number of 
 wagons per 
 dealer 
 
 Number of 
 dealers* 
 
 Total number 
 of wagons 
 operated 1 * 
 
 ] 
 
 1 
 
 174 
 
 174 
 
 2 
 
 2 
 
 57 
 
 114 
 
 3 
 
 3 
 
 29 
 
 87 
 
 4 
 
 4 
 
 10 
 
 40 
 
 5 
 
 5 
 
 19 
 
 95 
 
 6 
 
 6 to 10 
 
 19 
 
 147 
 
 7 
 
 11 to 15 
 
 10 
 
 131 
 
 8 
 
 16 to 20 
 
 7 
 
 122 
 
 9 
 
 21 to 25 
 
 g 
 
 191 
 
 10 
 
 26 to 50 
 
 8 
 
 306 
 
 11 
 
 51 to 100 
 
 7 
 
 416 
 
 12 
 
 101 to 200 
 
 2 
 
 321 
 
 13 
 
 Over 200 
 
 2 
 
 2022 
 
 
 
 
 
 To^l 
 
 
 352 
 
 4 166 
 
 "Several companies which were organized for the purpose of pasteurizing and bottling 
 milk for a group of independent distributors have been considered here as dealers. The 
 number of wagons operated is taken as the total operated by the sub-dealers making up 
 each of these units. 
 
 b When a company operates wagons both in Chicago and the suburbs, the total num- 
 ber is included. 
 
 grouped according to the number of wagons each operates. Altho this 
 is not an exact measure of the volume of business, it shows the great 
 diversity in the size of the companies. These range from the dealer who 
 receives a few cans of milk from near-by farms, which he bottles and 
 delivers in the immediate neighborhood, to the company which buys 
 milk at thirty-one country plants and uses over 1,300 wagons in dis- 
 tributing it thruout the city and in some of the suburbs. It may be 
 noted that there is a decided discrepancy between this table and the 
 report of the Department of Health as to the number of companies 
 operating. The difference is due, in part, to classing as one company 
 each group of independent dealers having a common bottling plant, as 
 mentioned above. 
 
 TYPES OF MIDDLEMEN 
 
 Altho the many agencies handling milk in Chicago may be sepa- 
 rated roughly into groups according to the general type of business they 
 represent, no sharp lines of division can be drawn because of the over- 
 lapping of activities. For instance, almost all the large and many of the 
 
466 BULLETIN No. 269 [June, 
 
 small retail dealers have some wholesale trade. For the purpose of dis- 
 cussion, however, they will be classed here as: (1) retail distributors; 
 (2) wholesale distributors; (3) stores; (4) jobbers; (5) brokers. 
 
 1. Retail Distributors. The greater part of the milk sold in Chi- 
 cago is handled by dealers whose chief aim is to supply the retail trade, 
 but who also sell large quantities of milk at wholesale, either as bulk 
 milk to hotels and restaurants or as bottled milk to stores, schools, 
 industrial plants and the like. If the volume of wholesale trade is 
 sufficiently large, special wagons or trucks are used to make deliveries. 
 Otherwise, the wholesale business is handled on the retail wagons. Fre- 
 quently the wholesale trade in a district is so small that it is more 
 economical to pay the regular retail commissions to the drivers than it is 
 to make a special delivery with a wholesale truck. As a result, the 
 records of some companies are in a form which does not permit the 
 separation of the retail and wholesale business: 
 
 2. Wholesale Distributors. A few dealers make no attempt to 
 enter the retail trade. They sell both bottled and bulk milk and cream 
 to hotels, restaurants, and institutions using large quantities. By far 
 the largest part of the wholesale trade in bottled milk, however, is with 
 the stores. Since 1920, there has also developed a large demand for 
 milk in half-pint bottles for school lunches. Altho this demand is 
 seasonal, corresponding with the school term, the amount consumed in 
 this way is a very appreciable part of the total milk consumption. The 
 sale of milk to a school not only increases consumption directly, but it 
 also serves as an excellent method of advertising the milk of the par- 
 ticular dealer supplying the school. Hence, this trade is perhaps more 
 sought after than the profits warrant. Many offices and factories also 
 buy considerable quantities of milk in half-pint bottles for their em- 
 ployees' lunches, and this trade, unlike that of the schools, continues 
 thruout the summer. 
 
 3. Grocery and Delicatessen Stores. Unlike some of the eastern 
 cities, Chicago does not have stores dealing exclusively in dairy 
 products, but milk and cream are commonly sold from grocery and 
 delicatessen stores. The price of milk sold in this manner is usually 
 the same as the regular retail price charged by the distributor. Even tho 
 at most stores no saving is made, the amount handled in this way is 
 very large, particularly during the summer. The corner grocery serves 
 as a convenient milk depot to which the housewife can send for an 
 extra bottle of milk to supplement the regular daily delivery. In addi- 
 tion, many families lacking ice in the summer time, depend on stores for 
 the purchase of milk in small amounts just before it is to be consumed. 
 The stores also get a large part of the trade of construction workers 
 and similar groups of laborers, among whom there has been a great 
 increase in the use of milk since the passing of the beer pail, altho 
 large quantities are also purchased directly from retail wagons which 
 make deliveries during the lunch hour. 
 
7925] MARKETING MILK IN CHICAGO DAIRY DISTRICT 467 
 
 Jobbing Companies. These represent another type of middleman 
 in Chicago. These companies sell milk, cream, and ice-cream mix to 
 dealers or plants in Chicago and in various other cities. In fact, this 
 business is not limited to near-by markets. During the summer, car- 
 load shipments of cream and ice-cream mix are sent regularly to distant 
 points, such as Philadelphia, Memphis, and New Orleans. This milk 
 and cream is ordinarily drawn from the distant parts of the Chicago 
 dairy district, particularly from the regions producing a surplus. For 
 instance, one of these companies is a subsidiary of a large condensed 
 milk company and obtains its supply of milk from the condensing plants 
 of the main company. These jobbers serve a useful purpose in provid- 
 ing a readily available supply for the distributors during the shortage 
 season, when the regular supply from the country fails to meet the 
 demand. In addition, many of the smaller dealers obtain cream from 
 this source thruout the year, with the exception of a month or two dur- 
 ing the spring when production is heaviest. 
 
 5. Milk Brokers. Milk brokers, as indicated by the name, do not 
 actually handle milk, but serve to find a market for individual farmers 
 who wish to ship their milk directly to a dealer in the city. In the past, 
 certain brokers also guaranteed collections for the farmers, thus insur- 
 ing them against loss from irresponsible milk dealers. The business of 
 these brokers is largely with the small dealers who have no country 
 plants. In recent years, the producers' organizations have taken over 
 most of the brokerage business formerly handled by privately owned 
 companies. At no time has this method of selling milk in Chicago 
 reached the proportions found in some city markets. 
 
 THE MILK DEALERS' BOTTLE EXCHANGE 
 
 The difficulty of complying with a Chicago ordinance which re- 
 quires that a milk dealer use only bottles marked with the company's 
 name is apparent when it is remembered that over four thousand 
 wagons and twice as many stores are distributing milk in the city. The 
 Chicago dealers have gone far towards solving the problem, however, 
 by the formation of the Milk Dealers' Bottle Exchange, which began to 
 function in a small way March 1, 1919, and came into full operation 
 February 1, 1920. 
 
 The Exchange is a stock corporation owned by the milk dealers in 
 Chicago in the proportion of one share of stock for each wagon operated. 
 Approximately 90 percent of the dealers, who operate 98 percent of the 
 wagons in Chicago, are stockholders in the Exchange and a number of 
 dealers that are not members are served also. Most of the dealers have 
 pledged themselves to use only their own bottles, altho the drivers are 
 required to collect all empty bottles regardless of their ownership. The 
 dealer sorts out the bottles belonging to other companies, and when 
 these have accumulated in sufficient number they are picked up by a 
 
468 
 
 BULLETIN No. 269 
 
 [June, 
 
 truck from the Exchange. At the Bottle Exchange they are sorted and 
 returned to their proper owners. Approximately 2,000,000 bottles are 
 handled each month. 1 A cent and a half is charged for each bottle 
 returned and the dealer receives three-fourths of a cent for each bottle 
 sent to the Exchange. The difference (three-fourths of a cent) is 
 sufficient to maintain the organization, and the expense to the dealers is 
 very much less than the loss in bottles which resulted from the former 
 disregard of ownership. 
 
 TABLE 3. EFFECT OF BOTTLE EXCHANGE IN DISCOURAGING USE OF BOTTLES OWNED 
 
 BY OTHER DEALERS 
 
 Group 
 
 Number of 
 wagons per 
 dealer 
 
 Number of 
 dealers 
 
 Total 
 number 
 of wagons 
 
 Percentage of bottles owned 
 by dealers using them 
 
 First 
 inspection 
 recorded" 
 
 Last in- 
 spection 
 recorded 15 
 
 Increase 
 
 I.. 
 
 1 to 5 
 6 to 15 
 16 to 35 
 Over 35 
 
 285 
 31 
 16 
 
 17 
 
 500 
 282 
 360 
 2 977 
 
 49.6 
 71.6 
 86.2 
 99.2 
 
 73.1 
 88.4 
 92.8 
 100.0 
 
 23.5 
 16.8 
 6.6 
 .8 
 
 2 
 
 3 
 
 4 
 
 
 All 
 
 
 349 
 
 4 119 
 
 * 90.2 
 
 95.3 
 
 5.1 
 
 a Dates of first inspection range from May, 1922, to December, 1922. 
 
 b Dates of last inspection range from March, 1923, to May, 1923. 
 
 "Average percentages are weighted according to the number of wagons operated. 
 The number of dealers and wagons do not quite correspond to the number shown in 
 Table 2 because of incomplete records from which the above data were compiled. 
 
 Writs of replevin are used to recover bottles from dealers who 
 refuse to abide by the agreement and from junk dealers who attempt to 
 ship bottles from the city. Three inspectors are employed who visit the 
 bottling plants and make a count of the bottles of other dealers which 
 are being used. If these amount to a considerable number, the offending 
 dealer is warned, and if this is not sufficient, a writ of replevin is served 
 by the sheriff's office and the bottles are taken by the Exchange without 
 allowing the dealer the usual three-fourths of a cent a bottle. 
 
 Before the formation of the Bottle Exchange, little attention was 
 paid to the ownership of bottles, so that in a load of milk the majority 
 of the bottles might bear names other than the name of the distributor. 
 During that period many of the small dealers bought few or no bottles, 
 but depended on those belonging to other dealers which their drivers 
 collected. Certain junk dealers, also, made a practice of collecting milk 
 bottles, which they sold to other dealers in the city or in neighboring 
 cities. This practice became so flagrant that it was not uncommon to 
 have a junk dealer approach a distributor and offer to sell back to him 
 some of his own bottles. 
 
 Since the formation of the Milk Dealers' Bottle Exchange, the 
 
 Table E, Appendix. 
 
1925] MARKETING MILK IN CHICAGO DAIRY DISTRICT 469 
 
 bottle situation in Chicago has improved greatly. Records are not 
 available for the first year of operation during which the greatest im- 
 provement was observed, but Table 3 shows that even during the last 
 year (1922-1923) the proportion of the other dealers' bottles in use 
 has decreased appreciably. It will be noted that the smallest dealers are 
 in general the worst offenders, tho many one- and two-wagon dis- 
 tributors have as good records as have the large companies and are 
 using no bottles but their own. 
 
 A milk-can exchange for wholesale dealers is also in operation in 
 Chicago, but it is not functioning so successfully as the Bottle Exchange. 
 This is due, in part, to the greater value of the cans, the ease of oblitera- 
 ting the owner's name, and the wide territory covered by can shipments. 
 
 THE CHICAGO DAIRY DISTRICT 
 
 In the preceding pages an attempt has been made to picture 
 roughly the Chicago milk market and the agencies which span the gap 
 between the producers and the consumers of milk. In the following 
 pages an attempt is made to present a similar picture of the Chicago 
 dairy district and the milk producers. 
 
 With the growth of the Chicago milk market there has naturally 
 been a corresponding expansion of the dairy district supplying the 
 market. This expansion has been in the nature of rapid and irregular 
 developments along certain railroads or in particularly favorable areas, 
 rather than a uniform extension of the outer limits of the milk zone. 
 Moreover, this uneven boundary of the milk zone advances or recedes 
 with seasonal variation in production. Many plants in the more distant 
 parts of the district hold shipping permits from the Department of 
 Health and ship fluid milk into Chicago during the season of shortage, 
 but condense or otherwise utilize the milk during the rest of the year. 
 
 The direction in which the Chicago milk district is growing is quite 
 apparent. To the south, corn-growing appears to be the most profitable 
 type of agriculture and dairying has made little headway in that direc- 
 tion, but to the west, and more particularly to the north, dairying is 
 well established. The only question here is one of a market. Will the 
 milk now being produced in these regions be condensed, made into 
 butter or cheese, or be shipped in natural form to Chicago? The 
 answer to this question is of the greatest importance to the dairymen 
 now supplying the Chicago market. 
 
 REGIONAL PRODUCTION OF MILK AND TRANSPORTATION COSTS 
 
 McHenry, Lake, Kane, and DuPage counties in Illinois are usually 
 thought to represent exceptionally heavy milk-producing areas because 
 they constitute the inner or most intensive part of the Chicago dairy 
 district. More milk, however, is produced per square mile in Calumet 
 and Sheboygan counties, Wisconsin, than is produced in McHenry 
 
470 
 
 BULLETIN No. 269 
 
 [June, 
 
 FIG. 3. PRODUCTION OF MILK IN THE CHICAGO DAIRY DISTRICT 
 
 Each figure represents the number of thousands of gallons produced per 
 square mile in the county, according to the 1920 Census. The cost, per 100 
 pounds, of shipping milk to Chicago in 10-gallon cans is indicated by the dotted 
 lines forming the outer limits of the rate zones. Note the heavy production of 
 milk in the zone bounded by the 40- and 45-cent rate lines. Most of this milk 
 is now condensed or made into butter or cheese, but it can be shipped to the 
 Chicago market at a cost only slightly greater than the cost of shipping milk 
 from the present dairy district. Milk can be shipped in tank cars from this 
 region at less cost than milk in cans from the near-by district. 
 
1925] MARKETING MILK IN CHICAGO DAIRY DISTRICT 471 
 
 county, while a dozen counties in Wisconsin show a heavier production 
 than Lake, Kane, or DuPage counties (Fig. 3). 
 
 The great volume of milk produced in the outer zones of the Chi- 
 cago area has already been tapped for the Chicago market, and larger 
 and larger amounts will be drawn from it in the future as the city mar- 
 ket grows. If the extension of the Chicago dairy district proceeds at 
 a rate just sufficient to meet the needs of an increasing population, the 
 development will be sound. If, however, high fluid-milk prices or any 
 other factors cause the outer zone to change too rapidly from a dairy 
 manufacturing region to a milk shipping region, the dairymen supply- 
 ing Chicago at the present time will suffer, because the city market 
 cannot possibly absorb the milk they are producing and that now being 
 produced in the more remote regions. 1 
 
 The cost of shipping milk to Chicago from different parts of the 
 accessible milk-producing area is indicated by the dotted lines on the 
 accompanying map (Fig. 3). The line shown is for 100 pounds of milk 
 in 10-gallon cans. These lines were located by connecting the different 
 shipping stations having the same rates for milk. Some points located 
 on branch lines within the various zones have higher rates than the 
 zone lines indicate, but, in general, the cost of shipping milk to Chicago 
 is correctly portrayed. 
 
 At the present time, by far the largest part of the milk entering 
 Chicago comes from within the zone bounded by the transportation 
 rate of 40 cents per hundred pounds. Practically double this amount 
 of milk is produced in the territory bounded by the 45-cent rate line. 
 In other words, the payment of only 5 cents a hundred pounds addi- 
 tional opens up a territory producing a larger amount of milk than is 
 produced within the 40-cent zone. Not all the milk produced between 
 the 40- and 45-cent rate lines is available for the Chicago market, for 
 the district supplies Milwaukee and numerous smaller cities. Some of it, 
 however, is already going to Chicago. Tho much of it is of sufficiently 
 high quality to be diverted to the fluid-milk market, the bulk of it is 
 now condensed or made into cheese and butter, approximately thirty- 
 five condensing plants being located within this zone (Fig. 4). The 
 Swiss cheese industry, centering in Green and LaFayette counties, 
 Wisconsin, has even higher requirements relative to the acidity of milk 
 when delivered to the country plant than does the fluid market, and 
 this milk can easily be made to meet the requirements of the Chicago 
 Department of Health. 
 
 Another factor that may influence the development of the Chicago 
 dairy district is the tank car. At least twenty-five of these cars have 
 been purchased by four or five dealers and in all probability more will 
 be put into use. The capacity of the tank car is approximately 51,000 
 
 J Since writing the above, the prediction has been fulfilled. High prices in the 
 summer of 1924 attracted Wisconsin milk and cut many producers in the inner district 
 out of a market. 
 
472 
 
 BULLETIN No. 269 
 
 [June, 
 
 pounds, or more than twice the capacity of the usual car loaded with 
 10-gallon cans. Because of this fact, relatively low transportation rates 
 
 o Bottling plants 
 
 x bulk receiving 
 
 stations 
 
 D Condensing plants 
 
 FIG. 4. LOCATION OF COUNTRY PLANTS IN THE CHICAGO DAIRY DISTRICT 
 
 Most of the bottling plants are located in the inner district because of the 
 higher cost of shipping bottled milk. Condensing plants tend to cluster about the 
 margin of the dairy district, altho a few are to be found close to Chicago. 
 
 have been granted by the railroads. For instance, the quoted rates for 
 milk transported from Slinger, Wisconsin, to Chicago (a distance of 125 
 miles) reduced to a hundredweight basis are as follows: 
 
1925} MARKETING MILK IN CHICAGO DAIRY DISTRICT 473 
 
 Milk in tank cars 27 cents 
 
 Milk in 10-gallon cans 45 cents 
 
 Milk in 8-gallon cans 49 cents 
 
 Milk in bottles 72 cents 
 
 With the low rate for tank cars, milk can be brought long distances 
 at less expense than it can be shipped short distances in cans. Not all 
 dealers, however, can take advantage of this saving in transportation. 
 In the first place, only comparatively few city bottling plants are located 
 on railroads, and the necessity of transferring the milk in tank trucks 
 from the car to the plant offsets a part of the advantage in their use. In 
 the second place, the quoted rate is based on a minimum load of 40,000 
 pounds, and relatively few country stations supply this amount thruout 
 the year. It is of course possible to load a tank car at more than one 
 station, and both this and the first objection could be met by the use of 
 the compartment tank car. 
 
 In the third place, the investment involved seems too large to many 
 of the smaller dealers. This factor is of no particular consequence, how- 
 ever, when compared with the saving in the cost of transportation if a 
 sufficient volume of milk is available. The initial cost of the cars is 
 high, 1 but the upkeep is far less than that of cans sufficient to handle 
 an equal amount of milk. 
 
 The present tendency in the use of tank cars is to draw milk from 
 well-established country plants in the regular Chicago district, and so 
 long as this is continued tank cars will be an advantage to the producers 
 of the inner district as well as to the dealers. They make it possible, 
 however, for dealers to go far up into the surplus regions and obtain 
 milk not now reaching the Chicago market, for the cost of transporting 
 milk from these regions in tank cars is less than the can rates from 
 the near-by shipping stations. 
 
 The economic position of the dairymen located in the inner dairy 
 district and producing milk for the Chicago market might be considered 
 very insecure, because of the great surplus milk-producing region which 
 adjoins on the north, were it not for certain factors which tend to main- 
 tain the present district. These factors are: the large investment in 
 country plants, the limitations of direct shipments of milk, and the 
 increased use of motor trucks in the district. 
 
 Large Investment in Country Plants. A very large amount of 
 milk used in Chicago is bottled in country plants. These bottling plants, 
 approximately forty in number, are scattered thruout the principal 
 parts of the dairy district, as shown in Fig. 4. Altho owned by but six 
 companies, these six companies operate over half the wagons in Chicago. 
 
 1 The quoted price in March, 1924, for a complete car was $13,500. 
 
474 BULLETIN No. 269 [/w<r, 
 
 The milk received at these plants is pasteurized, bottled, and shipped 
 to the city in refrigerator cars. As each of these country units is a 
 complete milk plant and usually includes equipment for the utilization 
 of surplus milk, a very large investment is represented by the combined 
 group. For this reason, any shift in the dairy district which would 
 mean the abandoning of these plants would, if possible, be avoided. At 
 the same time, should a producing area be opened which would permit 
 competing dealers to purchase their supplies at decidedly lower prices 
 than those prevailing in the locality of the country plants, the companies 
 owning the country plants would be forced to meet the competition. 
 
 In addition to the large amount of capital represented by these 
 bottling plants there is also a very heavy investment in country plants 
 where milk is received, cooled, and shipped to the city bottling plants. 
 Altho the usual method is to ship the milk in 10-gallon cans in refrig- 
 erator cars, some variations are to be observed, such as the use of 
 8-gallon cans and the tank cars previously mentioned. In a few instances 
 tank trucks are used to transport the milk from the nearest receiving 
 stations. As may be seen by Fig. 4, many of these plants are located 
 much farther from the city than the bottling plants. This is to be 
 expected, because the transportation rates for the bottled milk are from 
 50 to 70 percent greater than for milk in 10-gallon cans. This relatively 
 high transportation rate and the increasing use of motor trucks and 
 tank cars may foreshadow the conversion of many of the country 
 bottling plants into bulk receiving stations. In the past, the higher cost 
 of shipping bottled milk was offset to a certain extent by lower labor 
 costs in the country plants, but this advantage was lost when the 
 country workers in the inner district were unionized. 
 
 Probably the most distant country plant of a Chicago dealer is 
 located at Oconto, Wisconsin, approximately 230 miles from the city. 
 Other isolated spots in the great surplus producing region from which 
 milk is regularly shipped are: Appleton, 184 miles; Ripon, 168 miles; 
 Fond du Lac, 148 miles; and Plymouth, 151 miles. It is from similar 
 points outside the main district that the jobbers usually draw their 
 supply of milk and cream. 
 
 It is a peculiar fact that until very recently no difference was made 
 in the price paid for milk at the various country plants in the main 
 Chicago district regardless of the freight charges. Since the dealers buy 
 on average costs of transportation, the near-by dairyman with higher 
 production costs has been penalized by having to pay a portion of the 
 transportation costs of the milk produced in the more distant parts of 
 the district. It is surprising that a practice so illogical and uneconomic 
 as this one has persisted for so many years, particularly with the can- 
 shippers in the same territory operating under what amounts to a 
 zoning system. At the present time a premium of 8 cents a hundred 
 pounds of milk is paid at a few of the nearest country plants and it is to 
 be hoped that the practice will be extended until all milk purchased 
 
1925} MARKETING MILK IN CHICAGO DAIRY DISTRICT 475 
 
 at country plants will be subject to a differential at least as great as the 
 difference in freight rates. If such a system of buying is put into effect 
 it will tend to retard the extension of the dairy district by giving to the 
 near-by dairymen the differential in price which is economically justified 
 by their nearness to market. 
 
 Limitations of Direct Shipments. Of the 575 dealers in Chicago, 
 only about forty have country plants. The rest obtain their milk in one 
 or more of the following ways: by purchases from other dealers, by 
 truck from the country, or by direct shipment in cans from individual 
 dairymen. The last method is also employed to some extent by certain 
 of the dealers having country plants. This milk is shipped in 8-gallon 
 cans and is ordinarily handled without ice in regular baggage cars. 
 
 The can-shippers receive, in addition to the regular milk price, an 
 allowance of 15 cents a can if they furnish the cans. They pay the cost 
 of transportation and are allowed about 23.5 cents a can by the deal- 
 ers to cover this cost. The amount allowed for transportation is equal 
 to the freight rate from points approximately fifty miles from Chicago. 
 If the shipper lives nearer the city, he profits by the arrangement to 
 the extent of the difference between the rate allowed and what he 
 actually has to pay. This fact, together with the lack 'of refrigeration, 
 has tended to limit the can shipments to a zone with a maximum radius 
 of about 75 miles. Were it not for these two factors, many dairymen 
 in the outer zone who are now selling to condenseries or cheese factories 
 would ship directly to small dealers in the city. 
 
 The approximate number of can-shippers sending milk to Chicago 
 over the principal railroads in the spring of 1923 was obtained by the 
 Milk Producers' Association. The number reported by the various 
 roads was as follows: 1 
 
 Chicago, Milwaukee and St. Paul 500 
 
 Illinois Central 292 
 
 Pennsylvania 250 
 
 Chicago Great Western 150 
 
 Chicago, Burlington and Quincy 116 
 
 Chicago, North Shore and Milwaukee 62 
 
 Aurora, Elgin and Chicago 60 
 
 Grand Trunk 55 
 
 The Chicago and Northwestern and the New York Central were 
 unable to give the desired information. Mr. E. C. Rockwell, Secretary 
 of the Milk Producers' Association, estimated, however, that about 250 
 farmers were shipping over the Chicago and Northwestern, but that 
 only a very few were sending milk over the New York Central. The 
 Atchison, Topeka and Santa Fe and the Chicago, Rock Island and 
 Pacific reported that the milk business over their lines was handled by 
 
 'Letters from Mr. E. C. Rockwell, Secretary, Milk Producers' Association, July 11, 
 1923, and October 11, 1923. 
 
476 BULLETIN No. 269 \June, 
 
 the American Railway Express Company, so it may well be assumed 
 that the volume of milk handled over these lines is light. The Chicago 
 and Eastern Illinois and the Michigan Central reported no farmers 
 shipping. 
 
 The number of can-shippers in the Chicago district may be esti- 
 mated from the preceding figures at something less than 2,000. There 
 are undoubtedly far fewer at present than there were a few years ago, 
 a large falling off having resulted from the introduction of the motor 
 truck. It is highly probable that the number will continue to decrease 
 as the use of motor trucks increases. 
 
 Increased Use of Motor Trucks. Within the last decade there has 
 been a rapid development in the use of motor trucks to transport milk 
 from the country to Chicago. As the hard road system is extended, this 
 method of transportation will become increasingly important in that 
 part of the district which is near enough the city to make its use 
 practicable. Truck hauling has certain advantages over rail transporta- 
 tion and producers in the inner district thereby enjoy an additional 
 advantage over those in the more remote zones. 
 
 In July, 1923, a survey 1 of the dealers indicated that at least 
 75 trucks were being used to pick up milk in the country. Data on 
 about 40 of these showed that they were hauling a total of about 280,000 
 pounds of milk each day, but as this was the season of light production 
 practically all dealers reported that much heavier loads were hauled 
 during the rest of the year. In addition to these trucks hauling milk in 
 cans, seven tank trucks were reported as bringing in about 100,000 
 pounds of milk daily from bulk receiving stations. Some of these trucks 
 made two trips a day. 
 
 The trucks which pick up the cans of milk at the farms or from 
 stands along the truck routes are commonly of 3.5 tons capacity but 
 usually carry an overload. The number of cans hauled varies with the 
 season and the size of the truck, 100 cans being a fair average for trucks 
 of this size. Table 4 shows the range in the size of loads during the 
 period of shortage. During the surplus season, however, as many as 160 
 cans are hauled on a single truck. Loads in excess of the weight 
 limit set by the state road law 2 are common and arrests for violations 
 are not infrequent. This is particularly true in the case of four-wheeled 
 glass-lined tank trucks of 1,500 gallons capacity. 
 
 The average distance milk is hauled by the can trucks is about 
 twenty-five to thirty miles, altho one truck was reported as hauling milk 
 from a point fifty miles from the city. The mileage of 16 trucks haul- 
 
 *Data collected by Mr. H. F. Hall of the Department of Dairy Husbandry, 
 University of Illinois. 
 
 *The maximum weight allowed for vehicle and load is 24,000 pounds, or 32,000 
 pounds if trailer or semi-trailer is used. In either case, the weight on one axle cannot 
 be more than 16,000 pounds. 
 
7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 477 
 
 ing milk for 9 different companies is shown by Table 5. Because of the 
 greater amount of milk hauled, tank trucks are more economical for 
 long hauls than are the can trucks, but the tank trucks require country 
 plants where the milk can be cooled and are therefore not used by the 
 smaller dealers. 
 
 In most instances milk dealers do not own the trucks, but pay the 
 trucking company an agreed price per can, which usually corresponds 
 
 TABLE 4. NUMBER OF EIGHT-GALLON CANS OF MILK HAULED PER TRUCK 
 
 Group 
 
 Number of 
 cans per 
 truck 
 
 Number 
 of 
 trucks 
 
 Percentage of 
 total number 
 of trucks 
 
 1 
 
 81 to 90 
 
 11 
 
 50 
 
 2 
 
 91 to 100 
 
 1 
 
 4.5 
 
 3 
 
 101 to 110 
 
 4 
 
 18 2 
 
 4 
 
 111 to 120 
 
 2 
 
 9 1 
 
 5 
 
 121 to 130 
 
 2 
 
 9.1 
 
 6 
 
 131 and over 
 
 2 
 
 9 1 
 
 
 
 
 
 Total.. 
 
 
 22 
 
 100.0 
 
 to the rate for rail shipments. Table 5 indicates the cost of the two 
 methods. It must be remembered that with rail shipments most dealers 
 have the additional cost of trucking the milk from the unloading plat- 
 forms in Chicago to their bottling plants. With truck hauling this cost 
 is avoided. Even with the plant located on a railroad, the latter method 
 permits greater convenience in unloading if the dealer arranges for his 
 trucks to arrive at different times. This avoids the peak load of labor 
 which occurs upon the arrival of the milk train. 
 
 TABLE 5. DISTANCES MILK is HAULED BY MOTOR TRUCK AND RATE CHARGED PER 
 
 EIGHT-GALLON CAN 
 
 Company 
 
 Number of 
 trucks 
 
 Mileage 
 one way 
 
 Rate per 8-gallon can 
 
 Motor truck 
 
 Rail shipment 
 
 1 
 
 4 
 
 2 
 2 
 
 1 
 
 1 
 1 
 
 2 
 1 
 
 1 
 
 miles 
 23 
 25 
 26 
 30 
 30 
 35 
 35 
 50 
 31 
 21 
 20 
 32 
 25 
 28 
 
 cents 
 21 
 21 
 21 
 21 
 24 
 30 
 25 
 28 
 21 
 20.5 
 20.5 
 25 
 20 
 25 
 
 cents 
 21 
 21 
 21 
 21 
 24 
 30 
 25 
 28 
 21 
 20.5 
 20.5 
 24 
 21 
 25 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 
 Average 
 
 
 29.3 
 
 23.1 
 
 23.1 
 
478 BULLETIN No. 269 [/-?, 
 
 No data were available on the cost of operating tank trucks, altho 
 one dealer reported a contract with a trucking company operating two 
 trucks, each having a capacity of 1,500 gallons. The trucking company 
 owned all transportation equipment and assumed all road responsibility. 
 The rate charged was 30 cents a hundred pounds for a 50-mile haul. 
 The rail rate from this country plant was 33 cents a hundred pounds. 
 In addition to the saving in rates by tank trucks, the dealer avoided the 
 cost of cans and the cost of trucking the milk from the unloading 
 platform in the city to his bottling plant. 
 
 With the present high transportation rates it would appear that 
 where tank trucks or tank cars can be used, the logical thing to do is to 
 convert the country bottling plants into bulk receiving stations and avoid 
 the cost of hauling bottles back and forth between country and city. 
 
 There is every reason to believe that the trucking of milk to 
 Chicago will increase, and to the extent that trucks lower the cost of 
 transportation or add to the convenience of the dealers, the near-by 
 producers will have an advantage over the more distant dairymen and 
 the extension of the district will thereby be retarded. 
 
 INTENSITY OF DAIRYING IN THE INNER AND OUTER 
 PARTS OF THE CHICAGO DAIRY DISTRICT 
 
 Some idea of the intensity of dairying in the Chicago district may 
 be obtained from figures based on a census of 3,406 dairy farms. 1 
 These farms show the greatest variability in character and organization. 
 The range is from small to large farms, from scrub cows to record- 
 breaking and prize-winning purebreds, from the keeping of a few cows 
 as a side line to the maintenance of very large herds and the employ- 
 ment of intensive methods. The variation is not great enough, however, 
 to lessen the significance of these figures showing the average dairy farm 
 unit from which Chicago's milk supply is obtained. In Table 6 these 
 figures have been grouped to show the differences between the average 
 farm in the inner, or the most intensive part of the district, and the 
 average farm in the outer but not the most distant region. 
 
 There is no significant difference between these two regions in the 
 size of farms or in the percentage of tenancy. The greater intensity of 
 dairying in the inner district is shown, however, by the larger size of 
 the herds maintained 20 cows and 6 heifers as compared with 13 cows 
 and 4 heifers in the outer district. The ratio of heifers to cows is one 
 to three in both regions. The predominance of the latter is too great 
 to maintain the herds without the purchase of some additional cows. 
 The annual production of milk per cow, as indicated by the sale of milk, 
 is 700 pounds higher in the inner district. The farms in the latter region 
 are also better equipped, as is shown by the number of silos, milking 
 machines, and power pumps. 
 
 'Taken biennially by company inspectors. 
 
1925} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 479 
 
 Undoubtedly greater differences would be observed if the compari- 
 son were made between the farms of the inner district and those on the 
 margin, but the latter would represent but a small part of the source of 
 supply. 
 
 TABLE 6. COMPARISON OF AVERAGE DAIRY FARM IN INNER, OR MOST INTENSIVE, 
 PART OF CHICAGO DAIRY DISTRICT AND AVERAGE DAIRY FARM IN OUTER 
 PART OF DISTRICT, 1922 
 
 Section of dairy district 
 
 INNER 
 
 OUTER 
 
 
 Counties included 
 
 Cook, Lake, 
 Kane, and 
 McHenry, 
 111. 
 
 Will, DeKalb, 
 Ogle, and 
 Boone, 111.; 
 Kenosha, 
 Rock, and 
 Green, Wis. 
 
 
 Total number of milk plants or stations included 
 
 20 
 1 863 
 
 40 
 60 
 
 136 
 
 16 
 4 
 20 
 
 23 
 5 701 
 
 3 
 3 
 6 
 
 90 
 19 
 
 72 
 
 10 
 I 543 
 
 46 
 
 54 
 
 131 
 
 10 
 3 
 13 
 
 22 
 4 997 
 
 2 
 2 
 4 
 
 74 
 13 
 64 
 
 Total number of dairy farms included 
 
 Percentage of dairymen that are tenants* 
 
 Percentage of dairymen that are owners 8 
 
 Average number of acres per farm 
 
 Average number of cows per farm (milking) 
 
 Average number of cows per farm (dry) 
 
 Average number of cows per farm (total) 
 
 Average pounds of milk sold daily per cow (milking)* 1 
 
 Average pounds of milk sold annually per cow (total) 
 
 Average number of heifers per farm (over 1 year) 
 
 Average number of heifers per farm (under 1 year) 
 
 Average number of heifers per farm (total) 
 
 Average number of silos for each 100 farms 
 
 Average number of milking machines for each 100 farms.. . . 
 Average number of power pumps for each 100 farms 
 
 "The percentage of tenancy for the outer district is based on data obtained from 
 seven country plants instead of ten. 
 
 b At the time the data were collected, May, 1922. 
 
 ''Obtained by dividing the total amount of milk sold in 1922 by the total number"of 
 cows on the farms in May, 1922. 
 
 MILK PRODUCTION IN THE CHICAGO DAIRY DISTRICT 
 
 In order to understand the situation which exists today in the 
 Chicago milk market it is necessary to examine the events of the last 
 few years which have brought about the present conditions. 
 
 Dairying is much more sensitive to economic changes which affect 
 its relative profitableness than is the growing of crops. For instance, if 
 the price of corn suddenly advances until it is relatively much higher 
 than the price of wheat, the acreage of wheat cannot be decreased nor 
 the acreage of corn increased until the next planting season. On the 
 other hand, if the price of corn advances until it is relatively much 
 
480 
 
 BULLETIN No. 269 
 
 [fane, 
 
 higher than the price of milk, the dairy farmer can immediately make 
 an adjustment in his business. He can feed a lighter ration or send 
 some of his poorest cows to the stockyards and sell the corn which 
 would otherwise have been turned into milk. In either case, the produc- 
 tion of milk is decreased. This is exactly what happened during the 
 period of the war. 
 
 VARIATION FROM YEAR TO YEAR 
 
 In September, 1917, the price of corn 1 was approximately 200 per- 
 cent higher than the pre-war average. Milk, however, was only 59 
 
 TABLE 7. VARIATION IN AVERAGE AMOUNT OF MILK SOLD ANNUALLY PER FARM 
 Note temporary decrease in production of milk during the period of the war 
 
 Year 
 
 Number of farms 
 
 "Average amount of milk sold 
 anually per farm 
 
 1913 
 
 1 549 
 1 740 
 
 1 853 
 1 988 
 1 897 
 1 722 
 1 727 
 1 741 
 1 773 
 1 833 
 
 IDS. 
 89 800 
 94 600 
 95 400 
 93 000 
 83 400 
 73 700 
 85 300 
 86 800 
 92 400 
 96 400 
 
 perct. of 1913 
 100 
 105.3 
 106.2 
 103.6 
 92.9 
 82.1 
 95.0 
 96.7 
 102.9 
 107.3 
 
 1914 
 
 1915 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 1922 
 
 "Based on the average sales to eighteen country plants. The same 
 plants are used thruout the entire ten-year period. 
 
 percent higher. This was probably the month of greatest difference in 
 the price of milk and corn, but the continued high price of feed and 
 labor made dairying relatively unprofitable for some time. The result 
 was a curtailment in the amount of milk produced. Many dairymen 
 actually discontinued the business, but the, greatest decrease in produc- 
 tion came from the sale of a part of their cows and the lighter feeding 
 of the rest by those men who remained in the business. 
 
 Table 7 shows the extent of this decrease in production. From 
 1913 to 1916 the average sale of milk to eighteen country plants by 
 some 1,800 farmers ranged from about 90,000 to 95,000 pounds of milk 
 yearly per farm. In 1917 the amount dropped to about 83,000 pounds 
 and in 1918 to less than 74,000 pounds. The total number of farmers 
 selling milk to these plants also decreased during this period, but it 
 must not be concluded that all the dairymen who discontinued selling 
 to these plants sold their cows; undoubtedly, some of the number 
 merely changed to direct shipments or to trucking, which was rapidly 
 gaining favor. 
 
 *No. 2 yellow corn at Chicago. 
 
19251 MARKETING MILK IN CHICAGO DAIRY DISTRICT 481 
 
 Per capita consumption of milk also declined during this period, 
 but not to the same extent as production. The increase in population 
 tended to offset the decreased consumption and the dealers were faced 
 with the necessity of obtaining approximately the usual amount of milk. 
 Since the production per farm was low (less than four-fifths as much as 
 the four-year average, 1913 to 1916) additional territory had to be 
 opened. Plants were started in many new localities in 1918 and the 
 dairy district advanced farther into the surplus producing region. The 
 next year, however, the production of milk in the old territory was 
 about 15 percent greater than in 1918, and by 1922 it was 31 percent 
 higher than before the war-time slump. This large increase in the 
 amount produced in the old territory and the large supply of milk 
 coming from the new territory made it inevitable that a tremendous 
 surplus would result. 
 
 That these changes in production per farm were due both to 
 variations in the size of the herds and to changes in the rate of feeding 
 is shown by Table 8. The average number of cows per farm in 1918 
 was 12.6 percent less than in 1913. The production of milk per cow 
 also decreased 6.5 percent during the same period. By 1920, higher 
 milk prices had resulted in increases over 1918 in both the size of the 
 herds and in the average production per cow. Very low prices for 
 milk during 1921 and 1922 not only checked the increase in the average 
 size of herds, but even resulted in a slight decrease in 1922. The pro- 
 duction of milk per cow, however, was greatly increased, because the 
 farm value of grain and hay was relatively lower than milk. Even with 
 the prevailing milk prices, dairymen found it profitable to market as 
 large a proportion of their crops thru the cows as was possible. 
 
 This table suggests the reason why prices of dairy products do not 
 exhibit well-defined cycles such as are shown by prices of beef cattle, 
 hogs, and horses. Prices of these classes of livestock tend to rise and 
 fall over a period of years with considerable regularity because of 
 alternate periods of over- and underproduction. In all probability, there 
 are similar periods of over- and underproduction of dairy cattle, but the 
 production of milk is not directly determined by the number of cows 
 since changes in the rate of feeding may offset changes in the number 
 of cows. Thus, the average size of a herd in the Chicago district in 
 1922 was only 1 percent greater than in 1918, but the production of 
 milk per cow was 29 percent greater. The relative elasticity of the two 
 factors is indicated by the coefficients of variability for the data cover- 
 ing these six years. 
 
 Average number of cows per farm 5.93 1.15 
 
 Average production of milk per cow 8.83 1.72 
 
 The effect of economic conditions is also shown in the number 
 of heifers kept on these farms. 1916 showed an increase over 1913, but 
 the unfavorable outlook for dairying in 1917 and 1918 resulted in the 
 keeping of fewer heifer calves. The average number of heifers over one 
 
482 
 
 BULLETIN No. 269 
 
 [June, 
 
 TABLE 8. CHANGES IN NUMBER OF DAIRY CATTLE PER FARM AND IN PRODUCTION OF MILK. PER Cow DUE TO ECONOMIC CAUSES 
 Based on surveys of all farms selling milk to fifteen country plants in Chicago dairy district 
 
 3 
 
 T3 
 
 8 
 
 Si 
 rt 5 
 
 S3 e 
 
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 ^ *v O * * co -so 
 
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 Heifers under one year old 
 
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 < *X O i CM^- CN 
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.7925] MARKETING MILK IN CHICAGO DAIRY DISTRICT 483 
 
 year old in 1918 was 23.3 percent less than in 1913, while the average 
 under one year old was 34.1 percent below. The number of heifers 
 continued to decrease even thru the period of high milk prices (1918, 
 1919, and 1920), and only a slight increase is shown for heifers under 
 one year old, in 1922. It is to be expected that a certain amount of lag 
 behind milk prices would be found, but the long continued decrease in 
 the raising of heifers indicates other restraining factors. The very poor 
 market for dairy cattle during 1921 and 1922 permitted the purchase of 
 excellent cows at low prices and this undoubtedly tended to discourage 
 the raising of young stock. It is possible that this period may mark a 
 permanent change in the method of maintaining the herds in the inner 
 part of the Chicago district, and that the ratio of heifers to cows will 
 never again be as large as it was in 1916. It is quite probable, however, 
 that the ratio will increase until it is somewhat greater than it was in 
 1922. 
 
 The effects of the heavy production of milk in 1921 and 1922 were 
 made worse by the demoralized condition of the condensed milk market. 
 In October, 1920, many condenseries closed and others made drastic 
 cuts in the prices paid for milk. Naturally, some of the milk that had 
 previously been condensed sought the Chicago market and the existing 
 surplus was still further increased. 
 
 SEASONAL VARIATION IN PRODUCTION 
 
 In addition to the variation in production from year to year which 
 results from the combination of numerous economic factors, there is 
 the much greater seasonal variation. This variation is an ever present 
 problem to the milk distributor and, because of the maladjustment of 
 supply and demand, a highly important factor in determining the prices 
 received by the producer. 
 
 The seasonal variation in the production of milk is shown by Table 
 9 #nd Fig. 5. The dairy district has been divided into sections in order 
 to show some important differences between the various regions. For 
 example, Cook and Lake counties show the least variation, with Kane 
 and McHenry counties next. It is worthy of note that the production 
 in these counties, which represent the most intensive district, is very 
 little greater during the months of May and June than it is during 
 January, February, March, and April. On the other hand, in the more 
 distant parts of the Chicago dairy district the production during May 
 and June is much higher than during the other months. This is particu- 
 larly true of the Swiss-cheese region which is represented by Green and 
 LaFayette counties. The winter production in this region is extremely 
 low, the amount produced in December being but 44 percent of the 
 June production. 
 
 The greater seasonal variation in production in the surplus-milk 
 region is another factor which tends to retard the extension of the 
 Chicago dairy district and gives the producers in the inner district an 
 
484 
 
 BULLETIN No. 269 
 
 [June, 
 
 I 
 
 < S! 
 Q < 
 o . 
 
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 52 
 
 S5 
 
 II 
 
 Q 
 
 cu 
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 5 I 
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 c > 
 
 83 u,v 
 
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 T-H-^v 
 
 5; OO '-' i -OOOOOOOOOOON 
 
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 a 
 
1925} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 485 
 
 advantage because of their greater seasonal uniformity. It must be 
 remembered, however, that the newer regions can adjust their pro- 
 duction to the changed conditions which a fluid-milk market imposes. 
 
 The most striking feature of the seasonal variation is the low pro- 
 duction during the months of July, August, and September. At this 
 
 Group I - Cook f Lake Counties, ////no/3 
 
 Group 2- Kan* fMc/fenry Counties. Illinois 
 
 Group 3 - Will. Deftalb. Ogle. 9 Boon* Counties. Illinois 
 
 Group 4 - Kenosha. Waukesha if Rock Counties. Wisconsin 
 
 Group 5-Grte/i $ Lafayette Counties. Wisconsin 
 
 120 
 110 
 100 
 90 
 60 
 70 
 60 
 50 
 40 
 30 
 20 
 10 
 
 Jan. fth Mar. Apr. Hay June July Aug. Sept. Oct. Nov. Dec. 
 
 FIG. 5. SEASONAL VARIATION IN PRODUCTION OF MILK IN DIFFERENT 
 PARTS OF THE CHICAGO DAIRY DISTRICT 
 
 The graph represents the amounts of milk sold from an average 
 of 3,051 farms during the three-year period 1920 to 1922. The average 
 monthly sales for thirty-six months equal 100 percent. The least 
 seasonal variation is found in the inner district (Groups 1 and 2). 
 Altho the variation in the Swiss-cheese region (Group 5) is very 
 marked, the proportion of milk produced during the shortage period in 
 the late summer is greater than for any of the other districts. Some 
 dealers draw on this territory to supplement their supply at that time. 
 
 time flies are bad, pastures are short, few dairymen have sufficient 
 silage for summer feeding, and the fall- and winter-freshening cows are 
 well advanced in the lactation period. 
 
 If a dealer's regular supply of milk from the country is sufficient 
 for his needs during this period, it means that his surplus is very large 
 during the season of heavy production. In order to avoid this surplus 
 he may depend on jobbers or other dealers for a part of his supply dur- 
 ing the summer, but the number of companies which can follow this 
 practice is, of course, limited. 
 
 In addition to the preceding figures, which are based on detailed 
 data taken from the books of three large companies, supplementary 
 
486 
 
 BULLETIN No. 269 
 
 {June, 
 
 figures showing the range in the seasonal production for 1922 were 
 obtained by a survey of 64 dealers. During the season of low production 
 (August and September) the combined daily purchases of these com- 
 panies amounted to 1,476,978 pounds of milk. Their purchases during 
 the season of heaviest production (May and June) totaled 2,128,086 
 pounds per day, or 44.1 percent more than the purchases during the 
 shortage period. 
 
 Table 10 shows the differences between the purchases for May and 
 June and for August and September for companies of various sizes. As 
 would be expected, the smaller companies have in general the least 
 variation in purchases, because they get practically all their supply from 
 the inner district, where the seasonal production is most nearly uniform. 
 Group 4, in which are classed dealers purchasing from 20,001 to 30,000 
 
 TABLE 10.- 
 
 -DlFFERENCE IN AMOUNTS OF MlLK PRODUCED DURING SEASON OF HEAVY 
 PRODUCTION AND SEASON OF LEAST PRODUCTION 
 
 
 
 
 
 
 Ratio of May 
 
 Group 
 
 Volume handled 
 daily per dealer, 
 May and June 
 
 Number 
 of 
 dealers 
 
 Total daily 
 purchases, 
 May and 
 June, 1922 
 
 Total daily 
 purchases, 
 Aug. and 
 Sept., 1922 
 
 and June pur- 
 chases to 
 Aug. and 
 Sept. pur- 
 
 
 
 
 
 
 chases 
 
 
 Ibs. 
 
 
 Ibs. 
 
 Ibs. 
 
 perct. 
 
 1 
 
 Less than 5 000 
 
 23 
 
 53 312 
 
 43 942 
 
 121 3 
 
 2 
 
 5 001 to 10 000 
 
 10 
 
 79 650 
 
 66 114 
 
 120 5 
 
 3 
 
 10 001 to 20 000 
 
 12 
 
 207 641 
 
 149 829 
 
 138 6 
 
 4 
 
 20 001 to 30 000 
 
 5 
 
 115 580 
 
 94 060 
 
 122 9 
 
 5 
 
 30 001 to 40 000 
 
 8 
 
 279 325 
 
 194 872 
 
 143.3 
 
 6 
 
 Over 40 000 
 
 6 
 
 1 392 578 
 
 928 161 
 
 150 
 
 
 
 
 
 
 
 Total... 
 
 * 
 
 64 
 
 2 128 086 
 
 1 476 978 
 
 144.1 
 
 pounds of milk daily, shows, however, less variation in the seasonal 
 purchases than does Group 3, which handles less milk. The more 
 uniform supply of Group 4 is easily accounted for by the chance 
 grouping of five dealers who receive from the inner district 93 percent 
 of all the milk which they purchase. Group 3, on the other hand, 
 includes twelve dealers, some of whom purchased milk in Wisconsin, 
 where the seasonal production shows greater variation. 
 
 The six large dealers who purchase milk from all parts of the dairy 
 district had the greatest seasonal variation. During the flush season 
 (May and June) they received one and one-half times as much milk as 
 during the shortage season (August and September). 
 
 In view of the large volume of milk handled by these 64 dealers it 
 appears safe to conclude that in 1922 the May and June production in 
 the Chicago dairy district as a whole was approximately 44 percent 
 greater than the August and September production. This proportion 
 varies, of course, for individual companies and in different years. 
 
 A few dealers who obtain the greater part of their supply from the 
 
MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 487 
 
 inner district have found it advantageous to establish one or more 
 plants in the cheese districts, where spring-freshening cows predominate 
 and where the bulk of the year's production comes during the pasture 
 period. Altho this still further increases the May and June surplus, it 
 supplements the short supply from the inner district during the summer 
 months. Green and LaFayette counties, Wisconsin, (Fig. 5) are 
 illustrations of counties which show a much higher production in July, 
 August, and September than any of the other districts. 
 
 SEASONAL PRODUCTION AND PRICE 
 
 Since 1919, dealers and producers have attempted to obtain a more 
 uniform production of milk thruout the year by changing the relative 
 
 TABLE 11. SEASONAL VARIATION IN PRICE OF 3.5-PERCENT MILK AT COUNTRY STATIONS 
 
 IN CHICAGO DISTRICT BY FIVE-YEAR PERIODS, 1904 TO 1923* 
 Average monthly price for each 60-month period = 100 percent 
 
 Month 
 
 1904 
 to 
 1908 
 
 1909 
 to 
 1913 
 
 1914 
 to 
 1918 
 
 1919 
 to 
 1923 
 
 January 
 
 pent. 
 123 
 
 perct. 
 119 5 
 
 perct. 
 113 4 
 
 perct. 
 106 8 
 
 February 
 
 118 3 
 
 116 1 
 
 107 1 
 
 101 8 
 
 March 
 
 109.6 
 
 106.2 
 
 99.9 
 
 94.8 
 
 April 
 
 99.3 
 
 92.9 
 
 99.2 
 
 92.8 
 
 May 
 
 75.7 
 
 76.3 
 
 81.8 
 
 87.8 
 
 June 
 
 67 
 
 68.4 
 
 70.1 
 
 87.0 
 
 July... 
 
 74 9 
 
 82.3 
 
 87.1 
 
 103.0 
 
 August 
 
 89 9 
 
 91 6 
 
 98.7 
 
 110 
 
 September 
 
 97 8 
 
 95 6 
 
 99 5 
 
 102.9 
 
 October 
 
 108.8 
 
 109.5 
 
 111.2 
 
 106.0 
 
 November 
 
 115.9 
 
 118.8 
 
 f!6.0 
 
 105.1 
 
 December 
 
 119.8 
 
 122.8 
 
 116.0 
 
 102.0 
 
 
 
 
 
 
 Average 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 ''Corrected for secular trend. 
 
 levels of winter and summer prices. This is shown by Table 11, which 
 shows the seasonal variation in milk prices by five-year periods from 
 1904 to 1923. Until 1919, the winter price of milk was very high as 
 compared with the spring and summer prices, and winter dairying was 
 stimulated. The result, as previously discussed, was too much winter 
 milk and a sharp decline in production in the late summer. Beginning 
 with 1919, milk prices for the months of May, June, July, August, and 
 September have been relatively much higher than before, while the 
 winter prices have been relatively lower. 
 
 This change in the relative prices for summer and winter has 
 apparently had little effect on the seasonal production of milk in the 
 inner part of the dairy district, as may be seen by Table 12. In spite 
 of the greater seasonal uniformity in prices, which has been maintained 
 since 1919, the high winter production continues. Tho this may be 
 
488 
 
 BULLETIN No. 269 
 
 [June, 
 
 TABLE 12. SEASONAL VARIATION IN AMOUNT OF MILK PRODUCED IN INNER PART OF 
 CHICAGO DAIRY DISTRICT BY FIVE-YEAR PERIODS, 1908 TO 1922* 
 Average monthly sales for each 60-month period = 100 percent 
 
 Month 
 
 Average daily sales of milk per farm 
 
 1908 to 1912 
 
 1913 to 1917 
 
 1918 to 1922 
 
 January 
 
 Ibs. 
 395 
 403 
 401 
 395 
 412 
 419 
 324 
 269 
 292 
 305 
 326 
 368 
 
 perct. 
 110.0 
 112.2 
 111.7 
 110.0 
 114.8 
 116.7 
 90.2 
 74.9 
 81.3 
 84.9 
 90.8 
 102.5 
 
 Ibs. 
 390 
 406 
 395 
 391 
 404 
 417 
 327 
 283 
 111 
 290 
 316 
 355 
 
 perct. 
 110.1 
 114.6 
 111.5 
 110.4 
 114.1 
 117.7 
 92.3 
 79.8 
 78.2 
 81.9 
 89.2 
 100.2 
 
 Ibs. 
 391 
 407 
 419 
 403 
 415 
 405 
 310 
 281 
 287 
 316 
 343 
 383 
 
 perct. 
 107.6 
 112.0 
 115.3 
 110.9 
 114.2 
 111.5 
 85.3 
 77.3 
 79.2 
 86.9 
 94.4 
 105.4 
 
 February. 
 
 March .- 
 
 April 
 
 May 
 
 June 
 
 July... 
 
 August 
 
 September 
 
 October 
 
 November 
 
 December 
 
 
 Averaee. . 
 
 359 
 
 100.0 
 
 354 
 
 100.0 
 
 363 
 
 100.0 
 
 "Based on sales from an average of 544 farms to seven plants in Lake, Kane, and 
 McHenry counties, Illinois. 
 
 TABLE 13. SEASONAL DISTRIBUTION OF FRESHENING Cows AS INDICATED BY RECORDS 
 
 FROM FIFTEEN COW-TESTING ASSOCIATIONS IN NORTHERN ILLINOIS* 
 Number of cows freshening each month expressed as percentages of total for year 
 
 Month 
 
 Group 1 
 Cook and 
 Lake 
 counties 
 
 Group 2 
 Kane, 
 McHenry, 
 and DuPage 
 counties 
 
 Group 3 
 DeKalb, 
 Ogle, Boone, 
 and Winne- 
 bago counties 
 
 All 
 
 January 
 
 No.* 
 274 
 289 
 290 
 191 
 171 
 128 
 133 
 124 
 258 
 340 
 329 
 294 
 
 perct. 
 9.7 
 10.2 
 10.3 
 6.8 
 6.1 
 4.5 
 4.7 
 4.4 
 9.1 
 12.1 
 11.7 
 10.4 
 
 No. 
 407 
 349 
 370 
 244 
 217 
 168 
 205 
 295 
 443 
 499 
 438 
 394 
 
 perct. 
 10.1 
 8.7 
 9.1 
 6.0 
 5.4 
 4.2 
 5.1 
 7.3 
 11.0 
 12.4 
 10.9 
 9.8 
 
 No. 
 163 
 97 
 86 
 100 
 49 
 42 
 49 
 87 
 234 
 295 
 228 
 192 
 
 perct. 
 10.0 
 6.0 
 5.3 
 6.2 
 3.0 
 2.6 
 3.0 
 5.4 
 14.4 
 18.2 
 14.1 
 11.8 
 
 N. 
 
 844 
 735 
 746 
 535 
 437 
 338 
 387 
 506 
 935 
 1134 
 995 
 880 
 
 perct. 
 10.0 
 8.7 
 8.8 
 6.3 
 5.2 
 4.0 
 4.5 
 6.0 
 11.0 
 13.4 
 11.7 
 10.4 
 
 February 
 
 March 
 
 April 
 
 May 
 
 June 
 
 July... 
 
 August 
 
 September 
 
 October 
 
 November 
 
 December 
 
 
 Total 
 
 2821 
 
 100.0 
 
 4029 
 
 100.0 
 
 1622 
 
 100.0 
 
 8472 
 
 100.0 
 
 "Acknowledgment is due Mr. C. S. Rhode, Assistant Professor of Dairy Husbandry 
 Extension, for his courtesy in permitting the use of these records. 
 
 partly due to the fact that changes in farm practice naturally lag 
 behind changing price levels, the principal reason is the fact that 
 summer prices are not yet high enough to induce farmers to produce 
 summer milk in competition with crop growing in regions where a very 
 large proportion of the land is tillable. 
 
1925} MARKETING MILK IN CHICAGO DAIRY DISTRICT 489 
 
 The preference for fall-freshening cows in this region is clearly 
 shown by Table 13, which gives the months of freshening of 8,472 cows 
 during the years 1917 to 1922. It is significant that the least number 
 of spring-freshening cows is found in DeKalb, Ogle, Boone, and Winne- 
 bago counties, where dairying is of minor importance and crop growing 
 of major importance. 
 
 It is an open question whether it is more economical to raise sum- 
 mer prices and lower winter prices until a more uniform seasonal 
 production is obtained, or to draw upon the summer dairying regions of 
 Wisconsin to supplement the short summer and fall supplies. Either 
 course, however, is preferable to the present situation, which requires 
 the carrying of a large surplus during the winter months, when pro- 
 duction costs are highest. The present tendency, as has been indicated, 
 is both to change the seasonal price levels and to draw on the summer 
 dairies of Wisconsin. 
 
 CONSUMPTION OF DAIRY PRODUCTS IN CHICAGO 
 
 When the present study was undertaken, it was hoped that accurate 
 information on the per capita consumption of milk in Chicago could be 
 obtained. The difficulty of securing complete enough figures, however, 
 made impossible anything but an estimate. Figures were obtained from 
 retail routes showing the average daily sales of milk per family. The 
 data included sales to 7,743 families in one section of Chicago and to 
 8,511 families in another part of the city. The first section embraces 
 one of the better residential districts, where the people have incomes 
 sufficient for the luxuries of life; some may be classed as wealthy, 
 while many are prosperous business or professional men. In the second 
 district the incomes are smaller, being derived largely from clerical and 
 factory employment. Altho not one of the poorest sections of the city, 
 this district ranks somewhat below the other. 
 
 During January, 1923, the average daily retail sales of milk 
 amounted to 1.65 pints per family in the wealthier section of the city. 
 In the poorer district, the sales were almost 20 percent greater, or 1.96 
 pints per family. The larger consumption per family in the poorer 
 section may be due, on the one hand, to the fact that a family with a 
 small income exercising the greatest care in its expenditure feels that it 
 gets full value from the purchase of milk, and on the other hand, to 
 the number of children per family. 
 
 By making proper allowances for the amount of milk and cream 
 purchased at wholesale (Table 14), it is possible to compute the per 
 capita consumption for the city as a whole if it is assumed that these 
 16,254 families are typical. Such an assumption, of course, is open to 
 question, but under the circumstances it is the best approach to an 
 estimate. Assuming further that these families were of average size 
 (4.33 persons each) 1 and consumed the average amount of dairy 
 
 'United States Bureau of the Census. 
 
490 
 
 BULLETIN No. 269 
 
 [funt, 
 
 products, the daily per capita consumption of milk would be only 0.62 
 pounds, and of milk and cream in terms of 3.5-percent milk, 1.01 
 pounds. 
 
 Altho the foregoing figures on the per capita consumption are some- 
 what unsatisfactory because of the relatively small proportion of the 
 population which is included, a very large mass of data was obtained 
 which gives accurate information on the aggregate demands of this 
 market. Ths following data cover the entire city and because of the 
 large amount of business represented may be taken as correctly por- 
 traying the demand for dairy products in Chicago. 
 
 TABLE 14. RELATIVE CONSUMPTION OF CERTAIN DAIRY PRODUCTS IN CHICAGO 
 
 Estimate based on the combined sales of seventy-two milk dealers'* operating ap- 
 proximately 60 percent of the retail wagons in Chicago 
 
 Product 
 
 Unit 
 
 Total sales per day 
 
 Retail 
 
 Whole- 
 sale 
 
 Total 
 
 Equivalent of 
 3.5-percent milk 
 
 Milk.. 
 
 Quarts 
 Pints 
 Half-pts. 
 Quarts 
 Gallons 
 
 Half-pts. 
 Half-pts. 
 Gallons 
 Gallons 
 
 363 445 
 95 602 
 
 "4 182 
 
 71 899 
 29 957 
 
 26 425 
 
 435 344 
 125 559 
 26 425 
 4 182 
 14 093 
 
 120 221 
 9 616 
 5 098 
 671 
 
 Ibs. 
 935 990 
 134 976 
 14 203 
 8 991 
 121 200 
 
 400 456 
 45 859 
 271 723 
 51 197 
 
 perct. 
 47.2 
 6.8 
 .7 
 .5 
 6.1 
 
 20.2 
 2.3 
 13.7 
 2.5 
 
 Milk 
 
 Milk 
 Certified milk 
 
 Bulk milk 
 
 14 093 
 23 439 
 
 Cream 
 22-percent 
 
 96 782 
 9 616 
 
 32-percent 
 
 22-percent, bulk. . . 
 32-percent, bulk . . . 
 
 5 098 
 671 
 
 
 
 Total 
 
 
 
 
 
 1 984 595 
 
 100.0 
 
 a lncluding 17 strictly retail dealers, 5 wholesale dealers, and 50 dealers doing both 
 retail and wholesale business. 
 
 The relative amounts of milk and cream consumed in Chicago are 
 indicated by Table 14. A limited number of products are included in 
 the table, but these comprize by far the greatest part of the milk con- 
 sumption. It may be noted that fluid milk makes up 61.3 percent of the 
 total consumption and that 77.5 percent of this amount is purchased in 
 quart bottles. On the basis of the retail and wholesale sales of these 
 72 dealers, it may be concluded that about 29 pints of milk and 28 
 half-pints of "coffee" cream are purchased for each 100 quarts of milk. 
 
 CONSUMPTION IN DIFFERENT SECTIONS OF CHICAGO 
 
 The foregoing estimates apply to the consumption of milk in the 
 city as a whole. As may be seen from Table 15, these proportions vary 
 in different parts of Chicago and in the suburbs. 
 
 For purposes of comparison, the city was divided into sections 
 based on the territory served by different distributing stations. The 
 
1925-} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 491 
 
 relative consumption of dairy products in a few representative sections 
 is shown. Altho the population of the various districts is not exactly 
 homogeneous from sociological and economic standpoints, the pre- 
 ponderance of certain classes is sufficiently great so that the sections 
 may be taken as typical of the various standards of living. Thus, 
 Section A represents a district of comfortable homes and moderately 
 large incomes, and includes some districts made- up largely of the 
 Semitic race. Section B is a region of high rentals and high property 
 values, and includes many apartment hotels. Section C includes a some- 
 what mixed native and foreign population, while Section D includes 
 the Negro district, a part of the foreign district and a small corner of 
 
 TABLE 15. RELATIVE CONSUMPTION OF CERTAIN DAIRY PRODUCTS IN DIFFERENT 
 
 PARTS OF CHICAGO 
 
 Based on average retail sales to more than 200,000 families during the three-year 
 period 1920 to 1922 
 
 Section of Chicago 8 
 
 Amount consumed for each 100 quarts of milk 
 
 Pints of milk 
 
 Half-pints 
 of 22-percent 
 cream 
 
 Half-pints 
 of 32-percent 
 cream 
 
 Quarts of 
 buttermilk 
 
 A.. 
 
 16.5 
 24.3 
 23.5 
 39.2 
 23.7 
 18.9 
 15.9 
 
 18.3 
 41.5 
 18.9 
 39.4 
 26.0 
 20.7 
 39.7 
 
 1.8 
 2.8 
 1.4 
 3.0 
 1.9 
 1.8 
 3.4 
 
 1.6 
 2.7 
 2.8 
 8.7 
 2.1 
 2.1 
 3.6 
 
 B 
 
 C 
 
 D 
 
 E 
 
 Oak Park 
 
 Evanston 
 
 
 All of Chicago and 
 suburbs 
 
 28.9 
 
 28.2 
 
 2.4 
 
 3.7 
 
 *See key map, Fig. 6, for selected sections of the city, and Table F, Appendix, for 
 monthly consumption data. 
 
 the better-class white section. The great south-side residential district 
 is represented by Section E. Oak Park and Evanston are shown as 
 representative of the suburbs. 
 
 The consumption of dairy products in these districts shows some 
 interesting relations. For instance, it has ordinarily been supposed that 
 a pint of milk was the usual purchase of poor families. The high pro- 
 portion of pints sold in Section D (39.2 pints for each 100 quarts) 
 would appear to substantiate this belief. As a matter of fact, however, 
 the heavy sale of pints is due largely to the great factory district 
 included in this section. During the summer, many factory workers 
 drink milk with their lunches and the proportion of pints is thereby 
 greatly increased. During the winter, many of the workers change to 
 coffee or other hot drinks and the sale of pints falls off markedly. 
 
 With the exception of the district just mentioned, Section B pur- 
 chases a greater proportion of pints than any other district shown, altho 
 it has practically no factories and comprizes a region of high property 
 
492 
 
 BULLETIN No. 269 
 
 {.June, 
 
 Drainagt Cana. 
 
 values and high rentals. Far more wealth is represented here than in 
 Section A, but the ratio of pints to quarts is 50 percent greater than in 
 the less affluent district. In all probability, the higher consumption of 
 milk in Section A is partly due to the large number of Semitic people 
 who are noted as being, heavy consumers of milk. 
 
 Several milk dealers 
 have voiced the opinion 
 that milk in pint bottles is 
 too expensive for the poor 
 and that the quart is their 
 usual purchase. The data 
 in Table 15 and the figures 
 on the consumption per 
 family (page 489) would 
 tend to confirm the view, 
 but a more detailed study 
 than is here possible should 
 be made before extending 
 the above generalization to 
 include the more needy 
 families. 
 
 The sales of cream, in 
 comparison with the sales 
 of quarts of milk, vary 
 greatly in the different dis- 
 tricts. It is not surprising 
 that Section A, which was 
 classed as a region of com- 
 fortable homes but of no 
 great wealth, consumes only 
 18.3 bottles of 22-percent 
 cream for each 100 quarts 
 of milk, while the wealthier 
 and more fashionable Sec- 
 tion B consumes more than 
 twice as much (41.5 
 bottles). Similarly Oak 
 
 Park, which has a somewhat smaller proportion of wealthy residents 
 than Evanston, purchases only 20.7 half-pints of cream for each 100 
 quarts of milk, as compared with 39.7 for Evanston. Section C, which 
 includes one of the poorer sections of Chicago, also shows relatively 
 small purchases of cream (18.9 bottles). On the other hand, Section D, 
 which includes the poorest district in the city and is made up of a large 
 Negro and foreign population, purchases 39.4 half-pints of cream for 
 each 100 quarts of milk, or practically as much as Section B and 
 
 FIG. 6. MAP OF CHICAGO SHOWING SECTIONS OF 
 
 CITY SELECTED FOR STUDYING CONSUMPTION 
 
 OF DAIRY PRODUCTS 
 
 The demand for dairy products is different in 
 the various sections of the city because of economic 
 and racial differences in the population. 
 
1925} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 493 
 
 Evanston. In addition to the Negro and foreign districts, Section D 
 includes one corner of a moderately prosperous white district, but since 
 this district occupies less than one-tenth of the total area of Section D, 
 it appears improbable that the purchases in such a relatively small area 
 could be sufficiently great to raise the level of the whole district to the 
 height indicated. It seems evident, therefore, that the Negro population 
 has a taste for cream in spite of the apparent lack of wealth in the region. 
 Similar variations in the sale of 32-percent cream were found, altho 
 the price of "whipping" cream 1 keeps the sale of this commodity at 
 
 TABLE 16. RELATIVE CONSUMPTION OF MILK AND CREAM IN CHICAGO AND SUBURBS 
 Amount consumed per 100 quarts of milk 
 
 
 Computed 
 from: 
 
 Pints 
 of milk 
 
 Half-pints 
 of 22-per- 
 cent cream 
 
 Half-pints 
 of 32-per- 
 cent cream 
 
 Retail sales of 2 large dealers; 3-year 
 average, 1920-1922 
 
 Table 15 
 Table 14 
 
 28.9 
 28.8 
 
 28.2 
 27.6 
 
 2.4 
 2.2 
 
 Retail and wholesale sales of 72 dealers; 
 March, 1922 
 
 
 Difference 
 
 
 .1 
 
 .6 
 
 .2 
 
 about one-tenth that of "coffee" cream (22-percent fat). The three 
 leading sections of the city in the consumption of the higher testing 
 cream are, again, the fashionable and prosperous Section B and 
 Evanston and the Negro and foreign Section D. 
 
 Both Evanston and Section D show a decided liking for pure- 
 culture ripened skim milk, known by the trade as buttermilk. In the 
 suburb, the proportion is 3.6 quarts of buttermilk for each 100 quarts of 
 milk. The Negro and foreign populations of Section D, however, are 
 by far the largest consumers of buttermilk, purchasing 8.7 quarts for 
 each 100 quarts of milk. 
 
 The foregoing statements, relating to the consumption of milk in 
 various sections of Chicago, are based on the average daily retail sales 
 of two large companies over a period of three years (1920 to 1922). 
 It is evident from Table 16 that the consumption represented by these 
 sales is representative of the consumption of the city as a whole; that 
 is, the relative amounts of milk and cream sold at retail by the two 
 large dealers are practically the same as the relative amounts sold at 
 wholesale and retail combined by the 72 dealers included in Table 14. 
 The following data on consumption are also based on the three-year 
 average sales of the two large companies. 
 
 J Table B, Appendix. 
 
494 
 
 BULLETIN No. 269 
 
 [June, 
 
 LONG-TIME TREND OF CONSUMPTION 
 
 Several very significant changes in the secular, or long-time, trend 
 of consumption are indicated by the wholesale and retail sales of milk 
 and cream during the years covered by these data. The annual 
 increase or decrease in sales of each product is expressed in Table 17 
 in percentages of the three-year average. Since these data are based 
 on the total sales of certain dealers, the increase during the period under 
 study may have been due to one or more of the following factors: 
 (1) increased per capita consumption; (2) increased population; or (3) 
 increased business for these particular dealers at the cost of customers 
 for other dealers. Hence, figures of the secular trend in sales are signi- 
 
 TABLE 17. TREND* IN SALE OF CERTAIN DAIRY PRODUCTS FOR THE THREE-YEAR 
 
 PERIOD 1920 TO 1922 
 Yearly increase expressed in percentages of average sales for the period 
 
 Product 
 
 Unit of sale 
 
 Annual increase in sales 
 
 Retail 
 
 Wholesale 
 
 Milk.. 
 
 Gallons 
 
 perct. 
 
 perct. 
 1.1 
 1.0 
 12.3 
 68.7 
 
 4.3 
 19.5 
 3.0 
 14.3 
 
 Milk 
 
 Quarts 
 
 6.4 
 
 20.1 
 
 ( : -9J 
 (-.8) 
 
 Milk . . 
 
 Pints 
 
 Milk 
 Certified milk 
 
 Half-pints 
 Quarts 
 
 Buttermilk 
 
 Quarts 
 
 Cream 
 1 8-percent 
 
 Gallons 
 
 20-, 22-, 24-, 26-, 30- and 32-percent . . 
 22-percent 
 32-percent 
 
 Gallons 
 
 
 Half-pints 
 Half-pints 
 
 7.3 
 3.7 
 
 All milk 
 
 Bottled and bulk 
 Bottled and bulk 
 Bottled and bulk 
 
 7.8 
 8.4 C 
 8.0 C 
 
 All cream 
 
 All milk and cream b 
 
 "Lines of secular trend fitted by method of least squares. 
 b ln terms of 3.5-percent milk. 
 c Retail and wholesale. 
 
 ficant only in showing relative changes. For instance, during these three 
 years (1920 to 1922), the annual increase in the sales of all milk by 
 these dealers was 7.8 percent of the average of the period, but which of 
 the three factors causing this increase was the most important can only 
 be surmised. By comparing the percentage increases of the various 
 products, however, very significant changes in consumption are 
 apparent. 
 
 Retail sales are based on the purchases of over 200,000 families 
 and differences in the rate of increase are undoubtedly indicative of the 
 trends of consumption. Wholesale sales, however, are based on pur- 
 chases of a relatively small number of buyers, some of whom take only 
 one grade of cream or, perhaps, only bulk milk. The transfer of their 
 trade from one dealer to another under the existing competitive condi- 
 
.7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 495 
 
 tions necessarily affects these figures in a way not possible in the 
 case of the retail sales. This is particularly true in the case of bulk 
 milk and cream, and very much less so for bottled goods because of the 
 larger number of purchasers of milk in this form. 
 
 The increase in the sale of pints of milk at retail has been three 
 times as rapid as the increase in the sale of quarts. At the same time 
 the sale of certified milk actually decreased. Buttermilk also failed to 
 hold its own. Retail sales of "coffee" cream increased twice as rapidly 
 as the sales of "whipping" cream. Of special interest is the rapid 
 growth of the school trade in half-pints of milk. From practically 
 nothing at the beginning of 1920, this business grew to large proportions 
 by the end of 1922. The sale of pints of milk at wholesale also grew 
 rapidly, the rate of increase being twelve times that of quarts or of 
 bulk milk. 
 
 SEASONAL VARIATION IN CONSUMPTION 
 
 The consumption of dairy products by individuals varies consider- 
 ably in different seasons, and this, together with the migration from 
 the city during the summer vacation months, results in significant 
 
 TABLE 18. SEASONAL VARIATION IN CONSUMPTION OF MILK AND CREAM IN CHICAGO 
 
 AND SUBURBS* 
 
 Based on daily retail b and wholesale sales of milk and cream equivalent to 865,000 
 pounds of 3.5-percent milk. Average monthly sales for 36 months (1920 to 1922) 100 
 percent. 
 
 Month 
 
 Bottled and 
 bulk milk 
 
 Bottled and bulk 
 cream in terms 
 of 3.5-percent 
 milk 
 
 Total milk 
 and cream in terms 
 of 3.5-percent 
 milk 
 
 January 
 
 perct. 
 98.2 
 
 perct. 
 100.6 
 
 perct. 
 99.0 
 
 February 
 
 100.2 
 
 104.6 
 
 101.8 
 
 March 
 
 101.3 
 
 105.3 
 
 102.7 
 
 April 
 
 100.1 
 
 106.6 
 
 102.4 
 
 May 
 
 99.8 
 
 104.3 
 
 101.4 
 
 June 
 
 102.1 
 
 99.0 
 
 101.0 
 
 July.., 
 
 98 4 
 
 90.5 
 
 95.6 
 
 August 
 
 96.3 
 
 88.0 
 
 93.4 
 
 September 
 
 101.2 
 
 93.5 
 
 98.4 
 
 October 
 
 103.2 
 
 99.0 
 
 101.8 
 
 November 
 
 101.1 
 
 102.6 
 
 101.6 
 
 December 
 
 98.1 
 
 106.0 
 
 100.9 
 
 
 
 
 
 Average 
 
 100.0 
 
 100.0 
 
 100.0 
 
 "Corrected for secular trend. 
 
 b Of the total sales included in the table, the proportionate amounts sold at retail were 
 as follows: milk, 73 percent; cream, 56 percent; milk and cream combined, 67 percent. 
 
 seasonal variations in the total consumption of milk in the city. Table 
 18 shows the extent of this variation. 
 
 From January until June there is a somewhat irregular increase in 
 the amount of milk consumed. With the close of school, the exodus of 
 
496 
 
 BULLETIN No. 269 
 
 [June, 
 
 people from the city begins. Sales fall off rapidly, and the low point is 
 reached in August. 
 
 The public schools open immediately following Labor Day, and 
 a large proportion of the vacationists return at that time. The others 
 follow shortly, and practically all are back in the city by October, when 
 the peak of consumption is reached. During this month, 7 percent more 
 milk is consumed than during the low month, August. 
 
 Quarts of milk 
 
 Pints of milk 
 
 fa pints of 22 ptrant- crtam 
 
 It pints afil pertent crtam 
 
 Quarts of butttrmilk 
 
 Jan. fib. Uar. Apr. May Junt July dug. S*pt Oct. NOK Dtc, 
 
 FIG. 7. SEASONAL VARIATION IN CONSUMPTION OF CERTAIN DAIRY 
 
 PRODUCTS IN CHICAGO AND SUBURBS 
 
 Sales of cream and quarts of milk decrease in the summer, when 
 people leave the city for their vacations. Sales of buttermilk and pints 
 of milk increase, because hot weather stimulates their use as bever- 
 ages. This graph is based on retail sales to more than 200,000 families 
 during the three-year period 1920 to 1922. (Secular trend not removed. 
 Average monthly sales for thirty-six months equal 100 percent.) 
 
 The advent of cold weather again cuts the sales, which decline for 
 the next two or three months. 
 
 The seasonal variation in the consumption of cream is still greater. 
 August is the low month, while the heaviest consumption comes during 
 the winter and early spring. A fifth more cream is consumed in April 
 than in August. 
 
 The combined consumption of milk and cream expressed in terms 
 of whole milk shows peaks in the spring and fall, with a slight decrease 
 in mid-winter and a decided falling off during the summer. 
 
 A more detailed analysis of the seasonal variation in consumption 
 is shown by Table 19 and Fig. 7, which give the fluctuations in the 
 retail sales of certain dairy products. During the months of May, June, 
 
7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 497 
 
 July, August, and September, the sale of quarts of milk is below the 
 average of the year. The sale of pints, on the other hand, is greatest 
 during these months. Greater use of milk as a luncheon drink by 
 workers and lack of ice in many households explain the summer 
 demand for pints, while the decrease in the sale of quarts is accounted 
 for by vacations and week-end trips. 
 
 The effect of this temporarily decreased population is better 
 illustrated by the retail sale of cream. As may be seen from Table 19, 
 the consumption of "coffee" cream (22 percent fat) falls off markedly 
 during July and August, the sales during the latter month amounting 
 to only 81 percent of the December peak. The consumption of "whip- 
 ping" cream shows a much greater decrease, the sales in August 
 amounting to only 44 percent of the April peak. It may naturally be 
 
 
 
 TABLE 19. SEASONAL VARIATION IN RETAIL SALES OF CERTAIN DAIRY PRODUCTS* 
 Average monthly sales for 36 months (1920 to 1922) = 100 percent 
 
 Month 
 
 Quarts 
 milk 
 
 Pints 
 milk 
 
 Half-pints 
 22-percent 
 cream 
 
 Half-pints 
 32-percent 
 cream 
 
 Quarts 
 buttermilk 
 
 Quarts 
 certified 
 milk 
 
 January 
 
 pent. 
 103.4 
 
 perct. 
 87.6 
 
 perct. 
 105.4 
 
 perct. 
 121.9 
 
 perct. 
 70.9 
 
 perct. 
 98.7 
 
 February 
 
 103.7 
 
 89.7 
 
 105.9 
 
 121.9 
 
 79.2 
 
 102.0 
 
 March 
 
 103.1 
 
 98 2 
 
 104.4 
 
 120.5 
 
 87.7 
 
 103.6 
 
 April 
 
 101.4 
 
 99 3 
 
 105 1 
 
 127.6 
 
 93.2 
 
 100.6 
 
 May 
 
 99 5 
 
 102 5 
 
 102 1 
 
 112 4 
 
 103 1 
 
 101.3 
 
 June 
 
 98 8 
 
 110 8 
 
 97 3 
 
 85 3 
 
 142 9 
 
 99.8 
 
 July... 
 
 93.7 
 
 107.3 
 
 89.4 
 
 59.9 
 
 155.3 
 
 93.7 
 
 Aucust 
 
 91.6 
 
 107.3 
 
 86.1 
 
 56.6 
 
 127.7 
 
 95.1 
 
 September 
 
 97.5 
 
 105.2 
 
 93.5 
 
 65.1 
 
 103.5 
 
 100.1 
 
 October 
 
 101.9 
 
 103.5 
 
 101.3 
 
 92.1 
 
 89.4 
 
 102.4 
 
 November 
 
 102 2 
 
 99 4 
 
 103 3 
 
 113 1 
 
 76.7 
 
 101.7 
 
 December 
 
 103 2 
 
 89 2 
 
 106 2 
 
 123 6 
 
 70.4 
 
 101.0 
 
 
 
 
 
 
 
 
 Average 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 "Corrected for secular trend and changes in the relative prices of pints and quarts. 
 
 concluded that a larger number of the people who buy the more expen- 
 sive "whipping" cream are financially able to spend at least a portion 
 of the summer away from Chicago. 
 
 Buttermilk is a popular summer drink, over twice as much of this 
 product being consumed in July and August as is consumed in 
 December and January. 
 
 Wholesale sales (Table 20) show a seasonal variation which differs 
 from that of retail sales. The demand for bulk milk, quarts, and pints, 
 is highest during the summer. Sales of half-pints of milk correspond 
 very closely to the school year, altho a certain amount of office trade 
 gives some outlet for milk in this form during the summer vacation. 
 The effect of the Christmas holiday on the half-pint trade is easily 
 discernible in the December demand. The wholesale sales of cream 
 show about the same seasonal variation as do the retail sales, altho 
 
498 
 
 BULLETIN No. 269 
 
 [June, 
 
 they are somewhat more irregular, owing probably to the greater 
 effect of competition. 
 
 In the foregoing discussion of the seasonal consumption of dairy 
 products, the aggregate demand of the city rather than individual 
 demand was considered. Altho the total sales of milk decline in the 
 summer, in all probability the purchases of people remaining in the city 
 are higher per person during this period than at any other time, but 
 the data used here are not in a form to prove or disprove this belief. 
 However, it is the total demand of a city or of a district, and not the 
 per capita demand, that is of greatest interest to both producers and 
 dealers. 
 
 TABLE 20. SEASONAL VARIATION IN WHOLESALE SALES OF CERTAIN DAIRY PRODUCTS* 
 Average monthly wholesale sales for 36 months (1920 to 1922) = 100 percent 
 
 Month 
 
 Gallons 
 bulk 
 milk 
 
 Quarts 
 milk 
 
 Pints 
 milk 
 
 Half- 
 pints 
 milk 
 
 Gallons 
 18-perct. 
 cream 
 
 Half- 
 pints 
 22-perct. 
 cream 
 
 Half- 
 pints 
 32-perct. 
 cream 
 
 January. . . 
 
 perct. 
 91.3 
 
 perct. 
 94 2 
 
 perct. 
 84 7 
 
 perct. 
 119.2 
 
 perct. 
 93.4 
 
 perct. 
 96.6 
 
 perct. 
 108.3 
 
 February . . . 
 March 
 
 98.6 
 101.8 
 
 95.4 
 
 95.7 
 
 84.7 
 85.4 
 
 120.8 
 136.3 
 
 103.5 
 106.7 
 
 99.0 
 98.8 
 
 113.3 
 116.6 
 
 April 
 
 99.7 
 
 94.3 
 
 89.0 
 
 120.3 
 
 105.8 
 
 103.7 
 
 128.4 
 
 May 
 
 98.8 
 
 96 9 
 
 97.7 
 
 115.9 
 
 98.6 
 
 107.7 
 
 147.4 
 
 June 
 
 103.6 
 
 106 5 
 
 117.2 
 
 90.9 
 
 92.2 
 
 102.8 
 
 109.4 
 
 July... 
 
 103.8 
 
 110.7 
 
 120.6 
 
 28.6 
 
 85.4 
 
 99.3 
 
 76.7 
 
 August 
 
 102.8 
 
 107.4 
 
 121.4 
 
 26.0 
 
 94.4 
 
 100.3 
 
 70.5 
 
 September . . 
 October 
 November.. . 
 December. . . 
 
 101.1 
 103.0 
 100.0 
 95.5 
 
 109.7 
 102.4 
 94.6 
 92.2 
 
 120.8 
 108.6 
 92.6 
 
 77.3 
 
 88.6 
 136.6 
 
 132.7 
 84.1 
 
 95.2 
 105.4 
 108.0 
 111.4 
 
 103.0 
 99.6 
 94.1 
 95.1 
 
 73.6 
 
 77.7 
 85.9 
 92.2 
 
 Average. . 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 "Corrected for secular trend. 
 
 VARIATION IN CONSUMPTION BY DAYS OF THE WEEK 
 
 Not only does the consumption of dairy products vary with the 
 season, but, as may be seen by Table 21 and Fig. 8, it also varies with 
 the days of the week. In so far as the sale of quarts of milk is con- 
 cerned, Sunday and Monday are the only days that show significant 
 variations from the normal. On Sunday, many housewives purchase an 
 extra quart of milk, while others for whom a pint a day is the usual 
 purchase, buy a quart. The result is an increase of approximately 5 
 percent in the sales. Apparently, however, there is a slight tendency to 
 overstock, because on Monday the sale of quarts is about 3 percent 
 below normal. 1 
 
 As would be expected, pints of milk are purchased in the smallest 
 numbers on Sunday, altho Saturday also shows a low consumption. 
 
 TTie average consumption for the five days, Tuesday, Wednesday, Thursday, 
 Friday, and Saturday, has been arbitrarily designated as normal because the Sunday 
 and Monday purchases show the greatest variation for most dairy products. 
 
19251 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 499 
 
 The chief reason, of course, is the fact that with the Sunday holiday and 
 the Saturday half-holiday, fewer people are lunching away from home 
 and the demand for milk as a luncheon drink is greatly decreased. The 
 fact that they are at home accounts to some extent for the increased 
 sale of quarts on Sunday. 
 
 faroit 
 300 
 
 280 
 
 260 
 
 240 
 
 220 
 
 200 
 
 180 
 
 160 
 
 140 
 
 120 
 
 100 
 
 80 
 
 60 
 
 40 
 
 20 
 
 Averagt of Tut, Wtdi Thu. FrijSat 100 pirctnt 
 
 Percent 
 300 
 
 260 
 240 
 220 
 200 
 180 
 160 
 140 
 120 
 100 
 80 
 60 
 40 
 20 
 
 FIG. 8. VARIATION IN CONSUMPTION OF CERTAIN DAIRY PRODUCTS IN 
 CHICAGO AND SUBURBS BY DAYS OF THE WEEK 
 
 Saturday and Sunday are poor days for the sale of pints of milk, but 
 the sale of quarts on Sunday is a little above the average. Sunday is the 
 big day for cream, especially for whipping, but the housewives tend to 
 overstock and on Monday the sales fall below normal. 
 
 The greatest variation in the consumption of dairy products is 
 to be found in the case of cream. The Sunday sale of "coffee" cream is 
 54 percent above normal, while the sale of "whipping" cream on that 
 day is three times as great as during the rest of the week. In both 
 
500 
 
 BULLETIN No. 269 
 
 [June, 
 
 cases, the tendency to overstock is shown by the subnormal consump- 
 tion of Monday. 
 
 The consumption of cream on Thursday, as shown in Table 21 and 
 Fig. 8, is slightly exaggerated because of the large amounts that are 
 purchased for Thanksgiving Day. Sales of "coffee" cream on that day 
 
 TABLE 21. CONSUMPTION OF CERTAIN DAIRY PRODUCTS IN CHICAGO AND SUBURBS 
 
 BY DAYS or THE WEEK. 
 
 Based on average retail sales to more than 200,000 families during the three-year 
 period 1920 to 1922. Average sales for the five days Tuesday, Wednesday, Thursday, 
 Friday, and Saturday = 100 percent. 
 
 Day of 
 week 
 
 Quarts 
 
 milk 
 
 Pints 
 milk 
 
 Half-pints 
 22-percent 
 cream 
 
 Half-pints 
 32-percent 
 cream 
 
 Pounds 
 butter 
 
 Sunday 
 
 pent. 
 104.7 
 
 perct. 
 64.3 
 
 perct. 
 153.7 
 
 perct. 
 311.9 
 
 perct. 
 87.0 
 
 Monday 
 
 97.2 
 
 100.8 
 
 93.7 
 
 76.4 
 
 78.1 
 
 Tuesday 
 
 99 9 
 
 104 2 
 
 100 7 
 
 88 1 
 
 91.1 
 
 Wednesday .... 
 
 99 3 
 
 104 9 
 
 99 3 
 
 96 3 
 
 97 6 
 
 Thursday 
 
 100 4 
 
 104 4 
 
 103 1 
 
 107 3 
 
 90 8 
 
 Friday 
 
 100.4 
 
 105.2 
 
 97.6 
 
 93.0 
 
 95.6 
 
 Saturday 
 
 100.0 
 
 81.3 
 
 99.3 
 
 115.3 
 
 124.9 
 
 are almost double the regular Thursday sales, while six times the usual 
 amount of "whipping" cream is required to supply the demand. As 
 three of the 157 Thursdays which are included in the three-year period, 
 1920 to 1922, were marked by the heavy Thanksgiving Day sales, the 
 average for Thursday is raised a small amount. Even if the three days 
 of abnormal purchases are omitted, however, the Thursday consump- 
 tion is still a little above normal. Other holidays affect sales of milk and 
 cream also. 
 
 The consumption of milk in Chicago not only increases as summer 
 approaches, but it also fluctuates from day to day with fluctuations in 
 temperature. The location of the city on Lake Michigan makes the 
 temperature during the summer months subject to abrupt changes: 
 when the wind blows from the lake, it is usually cool; a shift to the west 
 or south ordinarily brings warmer weather and an increased demand 
 for milk. 
 
 The degree of correlation between the daily fluctuations of tem- 
 perature and the corresponding fluctuations in the sale of milk is shown 
 by Table 22. The correlation for retail milk is higher than for whole- 
 sale milk. This is to be expected, because for retail milk the relation 
 is between temperature and purchases by actual consumers, while for 
 the wholesale milk the relation is between temperature and estimates 
 by hotel and restaurant managers of the amount that will be consumed. 
 
7925] MARKETING MILK IN CHICAGO DAIRY DISTRICT 501 
 
 The extent to which temperature affects the retail sales of quarts 
 and pints of milk and the wholesale sales of bulk milk is different in 
 each case, as shown by Table 23. Quarts of milk are least affected, since 
 purchases are largely for household use. The proportion of pints pur- 
 chased by workers to drink with their lunches is greater than for 
 
 TABLE 22. CORRELATION COEFFICIENTS OF TEMPERATURE AND SALES OF MILK FOR THE 
 SUMMER PERIOD, MAY TO OCTOBER* 
 
 Product 
 
 b Correlation 
 coefficient 
 
 Probable 
 error 
 
 Quarts, retail 
 
 +0 523 
 
 =t 038 
 
 Pints, retail 
 
 +0 567 
 
 =t 035 
 
 Bulk, wholesale . . . 
 
 +0.331 
 
 .046 
 
 a Based on the daily consumption of over 400,000 people during the summer of 1922. 
 
 b Corrclation of the number of degrees that the maximum temperature on a given 
 day varies from the average of the maximum temperatures of the previous seven days, 
 and the percentage that the sales of milk on the following day deviate from the average 
 sales of the previous seven days. Sales of milk corrected for secular trend and for seasonal 
 and day-of-the-week variations. 
 
 From a purely statistical standpoint, a more desirable correlation is that of percentage 
 deviations of temperature from the normal and percentage deviations of sales from the 
 expected sales, both expressed in terms of standard deviations. On this basis, the corre- 
 lation coefficient of temperature and sales of quarts of milk is +0.547 == .026, as compared 
 with +0.523 =*=.038 obtained by the above method. Altho a slightly higher degree of 
 correlation is thus obtained, the method of computing the deviations is much more in- 
 volved. Furthermore, calculations of "normal" temperatures and ''expected" sales 
 require data on the temperature and sales for a period following the day on which the 
 deviations are to be measured. This, of course, precludes the use of such deviations in 
 predicting sales, since a milk dealer has only past temperatures and past sales on which 
 to base his prediction. For this reason, the method involving deviations from previous 
 weeks' averages has been used. 
 
 quarts, and the sale of pints is therefore more affected by temperature. 
 A large share of the bulk milk is sold to restaurants and hotels, and as 
 a result temperature changes have a very marked effect on the sales. 
 Altho some of this bulk milk was probably used for ice cream, the 
 amount is relatively small, as no sales by jobbers or by dealers doing a 
 strictly wholesale business were included. 
 
 The most striking feature of the effect of temperature on sales is 
 shown when a sudden drop of fifteen or twenty degrees occurs. The 
 resulting decrease in consumption is very much greater than the 
 increase which follows a sudden rise of an equal number of degrees. It 
 appears that many people who drink milk at lunch find a hot drink more 
 to their liking when there is a sharp fall in temperature. Since milk is 
 very rarely used as a hot drink, they shift to coffee, tea, or cocoa, and 
 the demand for milk is thereby decreased. On the other hand, there 
 are many iced drinks from which to choose if the coffee- and tea-drinkers 
 prefer a cold drink when the temperature climbs suddenly. Since milk 
 gets only a part of this shift in demand, the increase in sales is much 
 
502 
 
 BULLETIN No. 269 
 
 [June, 
 
 less than it would be if there were no alternative cold drinks from which 
 to choose. 1 
 
 These variations in demand may be anticipated to some extent. 
 Since most of the milk is delivered very early in the morning during 
 the summer, a hot or cold day affects the next day's demand rather than 
 the sales for that day. Hence, the amount of milk that is bottled may 
 be varied according to the temperature. 
 
 TABLE 23. EFFECT OF TEMPERATURE CHANGES ON SALES OF BOTTLED AND BULK MILK 
 DURING THE SUMMER PERIOD, MAY TO OCTOBER 
 
 Deviation of 
 maximum tem- 
 perature on a 
 given day from 
 average of maxi- 
 mum tempera- 
 tures of previous 
 seven days 
 
 Predicted sales for the following day in percentage of average 
 sales of previous seven days* 
 
 When temperature increases 
 
 When temperature decreases 
 
 Quarts 
 retail 
 
 Pints 
 retail 
 
 Bulk 
 wholesale 
 
 Quarts 
 retail 
 
 Pints 
 retail 
 
 Bulk 
 wholesale 
 
 Degrees 
 1 
 
 100.1 
 100.1 
 100.2 
 100.2 
 100.3 
 100.4 
 100.4 
 100.5 
 100.5 
 100.6 
 100.6 
 100.7 
 100.8 
 100.8 
 100.9 
 101.0 
 101.1 
 101.1 
 101.2 
 101.3 
 
 100.1 
 100.2 
 100.3 
 100.4 
 100.5 
 100.6 
 100.7 
 100.8 
 100.8 
 100.9 
 101.0 
 101.1 
 101.2 
 101.3 
 101.3 
 101.4 
 101.5 
 101.6 
 101.6 
 101.7 
 
 100.4 
 100.7 
 101.0 
 101.3 
 101.6 
 101.9 
 102.2 
 102.5 
 102.8 
 103.1 
 103.3 
 103.5 
 103.7 
 103.9 
 104.1 
 104.3 
 104.5 
 104.6 
 104.7 
 104.8 
 
 99.9 
 99.9 
 99.8 
 99.8 
 99.7 
 99.6 
 99.5 
 99.5 
 99.4 
 99.3 
 99.2 
 99.2 
 99.1 
 99.0 
 98.9 
 98.8 
 98.7 
 98.6 
 98.5 
 98.4 
 
 99.9 
 99.8 
 99.7 
 99.6 
 99.4 
 99.2 
 99.0 
 98.8 
 98.6 
 98.4 
 98.2 
 98.0 
 97.8 
 97.6 
 97.4 
 97.1 
 96.8 
 96.5 
 96.2 
 95.9 
 
 99.6 
 99.2 
 98.8 
 98.4 
 98.0 
 97.6 
 97.2 * 
 96.8 
 96.4 
 96.0 
 95.5 
 95.0 
 94.5 
 94.0 
 93.5 
 93.0 
 92.5 
 92.0 
 91.5 
 91.0 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 *From curves fitted to means of arrays by the curvilinear approximation method. 
 Ezekiel, Mordecai: A method of handling curvilinear correlation for any number of 
 variables. Jour. Amer. Statis. Assoc., 19, n. s. 148, December, 1924. 
 
 By the use of these data, sales for the ensuing day may be pre- 
 dicted with a considerable degree of certainty. For example, let it be 
 assumed that a dealer has sold an average of 30,000 quarts, 10,000 
 pints, and 1,000 gallons of bulk milk during the last week in May. The 
 average temperature was 70 degrees, but on Tuesday the temperature 
 
 lr This suggests a somewhat neglected point toward which advertising to increase 
 milk consumption could be directed. For many years soft drink manufacturers have 
 stressed the refreshing effect of their beverages when consumed on a hot day. It 
 might pay to do the same with milk. 
 
7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 503 
 
 falls to 55, a decrease of 15 degrees. From Table 23 it may be seen 
 that the demand for quarts the next day will be 98.9 percent of the 
 previous week's average; the demand for pints, 97.4 percent; and the 
 demand for bulk milk, only 93.5 percent: or 29,670 quarts, 9,740 pints, 
 and 935 gallons of bulk milk. These, however, are averages for the 
 week, and to get the sales for any particular day it is necessary to 
 multiply these figures by the corresponding percentage variations for 
 the day of the week (Table 24). Hence, for the estimation for Wednes- 
 day's delivery 29,670 quarts would be multiplied by 99.5 percent; 
 9,740 pints, by 111.9 percent; and 935 gallons of bulk, by 106.6 percent. 
 The results, 29,522 quarts, 10,899 pints, and 997 gallons, would be the 
 amounts the dealer could expect to sell. 
 
 TABLE 24. DAY-OF-THE-WEEK CORRECTIONS FOR PREDICTING SALES OF MILK FROM 
 
 TEMPERATURE CHANGES DURING SUMMER PERIOD 
 Expressed in percentage of average sales of previous seven days 
 
 Day of week 
 
 Quarts retail 
 
 Pints retail, 
 May to 
 October 
 
 Bulk wholesale, 
 May to 
 October 
 
 School 
 period* 
 
 Vacation 
 period 1 * 
 
 Sunday 
 
 103.2 
 97.8 
 99.6 
 99.5 
 100.4 
 100.0 
 99.5 
 
 101.6 
 98.3 
 100.3 
 99.6 
 100.5 
 100.3 
 99.4 
 
 59.7 
 109.7 
 111.4 
 111.9 
 112.3 
 113.0 
 82.0 
 
 80.3 
 98.7 
 99.4 
 106.6 
 107.0 
 101.6 
 106.4 
 
 Monday 
 
 Tuesday 
 
 Wednesday 
 
 Thursday 
 
 Friday 
 
 Saturday 
 
 
 Average 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 "From May 1 to close of public schools and from Labor Day to October 31. 
 b From close of public schools to Labor Day. 
 
 Since the correlation is not perfect, it is impossible to predict 
 exactly the demand for milk from temperature alone, but the above 
 tables may be used as a guide, if a reasonable margin of safety is 
 allowed. Various factors, such as rapidly growing business, vacation 
 migrations, holidays, and sections of the city where the day-of-the-week 
 variations differ, would introduce errors into these computations which 
 would need to be allowed for by the dealer using them. 
 
 CONSUMPTION OF MILK AS AFFECTED BY PRICE 
 
 The foregoing discussion of the consumption of dairy products is 
 based on average figures for the three-year period 1920 to 1922. During 
 that time, however, there were six changes in the retail price of quarts 
 of milk and five changes in the price of pints. Quarts ranged from 12 to 
 16 cents, and pints from 7 to 10 cents. This naturally had some effect 
 on the amount of milk sold. The extent to which these changes affected 
 the sale of milk was determined as indicated on page 510. 
 
504 
 
 BULLETIN No. 269 
 
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 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
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1925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
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508 
 
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510 BULLETIN No. 269 [/""<?, 
 
 Data on the weekly retail sales of milk were corrected for secular 
 trend and seasonal variation and the expected sales were computed on 
 the basis of these corrected data. The actual sales of milk for three 
 weeks before and for three weeks after each change in the retail price 
 were expressed as percentages of the "expected" sales. Tables 25 to 30 
 show the deviation of the actual from the "expected" sales and the 
 changes in consumption that may be attributed to changes in the 
 retail price. 
 
 These data indicate that: 
 
 1. An increase in price tends to cut consumption slightly, while a 
 decrease in price stimulates demand to an even slighter degree. 
 
 2. Sales of quarts of milk seem to be less influenced by price 
 changes than sales of pints. 
 
 3. A change in the price of one unit without a corresponding 
 change in the price of the other causes a shift in the proportionate sales 
 of the two units. 
 
 4. The net change in consumption, when both pints and quarts of 
 milk are combined, is surprisingly small considering the percentage 
 change in price which a change of one cent occasions. 
 
 The shifting from quarts to pints or vice versa, due to changes in 
 the relative price of the two units, is emphasized by Fig. 9, which 
 shows the ratio of pints to quarts. The chart indicates, also, the danger 
 of confusing seasonal variation with changes in demand due to price 
 changes. 
 
 It should perhaps be noted that the period under consideration 
 was one of violent price fluctuations for nearly all commodities, and the 
 consumption of milk may have been less affected by price changes than 
 it would have been in more stable times. For this period, however, 
 these data indicate that on the average a change of one cent a quart 
 changed the consumption of milk less than one percent, or occasioned 
 about the same change as results from a variation in temperature of 
 10 degrees from one summer day to the next. 
 
 The two divisions of this study immediately preceding, dealt with 
 the production and consumption of milk. The present division deals 
 with the natural resultant of these two factors when production is 
 greater than consumption; that is, with surplus milk. 
 
 The term "surplus milk" may have two meanings. One dealer may 
 apply it to all milk purchased above the bottled and bulk milk require- 
 ments of his trade. Another may reserve it for milk purchased in excess 
 of the amount necessary to supply his trade with all the usual products, 
 including cream and butter. The first definition is probably the more 
 common and as a matter of convenience will be adopted here. Altho 
 it might appear somewhat more logical to exclude from surplus milk 
 that which is used to supply the regular cream trade, to do so 
 
1925} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 511 
 
 would complicate an analysis of the surplus problem, because many 
 dealers buy a part or all of their cream from the country or from job- 
 bers at prices which are normally lower than the cost of cream sepa- 
 rated from, milk, for which they have paid the regular fluid-milk price. 
 
 FIG. 9. CHANGES IN PROPORTIONATE PURCHASES OF PINTS AND QUARTS 
 OF MILK DUE TO CHANGES IN RELATIVE PRICES OF THE Two UNITS 
 
 The small circles show the ratio of pints to quarts in different 
 parts of the city. The upper line shows the relative price of pints and 
 quarts. When the price of pints is high as compared with the price of 
 quarts, some consumers change their purchases from the smaller to the 
 larger unit. Note the relative decrease in pints in March, 1920, and 
 in December, 1922. 
 
 VARIATION IN SURPLUS FROM YEAR TO YEAR 
 
 In comparing the price paid by the consumer and the price 
 received by the producer, we are likely to think of all the milk 
 purchased as being sold at the retail price of bottled milk. Table 31 
 shows that this is far from true. Data were obtained from one company 
 covering a period of seven years and it may be seen that even during 
 the wartime shortage of milk the total annual surplus amounted to 
 28 percent of all the milk purchased. During 1921 and 1922 the surplus 
 handled by this company amounted to approximately 35 percent of the 
 purchases. During the same years Company B had a surplus of about 
 30 percent. In other words, only about two-thirds of the milk purchased 
 was sold as bottled or bulk milk. The rest was separated for cream or 
 made up into other dairy products. 
 
512 
 
 BULLETIN No. 269 
 
 {June, 
 
 It is a significant fact that the amount of surplus milk was high 
 during 1921 and 1922, when the spread between the retail price per 
 quart of bottled milk and the wholesale price per quart for all milk 
 purchased was greatest (Fig. 1). That is, the greater the proportion 
 of milk going into lower priced products, the lower must be the flat price 
 paid for all milk purchased. 
 
 Altho this study does not deal with the cost of distributing milk, 
 brief mention may well be made of that problem in order to avoid the 
 
 TABLE 31. YEARLY VARIATION IN AMOUNT OF SURPLUS MILK 
 
 HANDLED BY Two COMPANIES 
 Total amount of milk purchased each year = 100 percent 
 
 Year 
 
 COMPANY A 
 
 COMPANY B 
 
 Bottled and 
 bulk milk 
 
 Surplus 
 milk 
 
 Bottled and 
 bulk milk 
 
 Surplus 
 milk 
 
 1916.. 
 
 perct. 
 61.1 
 68.3 
 73.9 
 66.9 
 71.6 
 65.3 
 65.5 
 
 perct. 
 38.9 
 31.7 
 26.1 
 33.1 
 28.4 
 34.7 
 34.5 
 
 perct. 
 
 ( a ) 
 ( a ) 
 C) 
 ( a ) 
 78.9 
 70.2 
 70.5 
 
 perct. 
 
 ( a ) 
 ( a ) 
 ( a ) 
 ( a ) 
 21.1 
 29.8 
 29.5 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 1922 
 
 a Data not available. 
 
 inference that the wide spread between the retail price of milk and the 
 wholesale price to the producer during 1921 and 1922 was due entirely 
 to the great amount of surplus handled during those years. The cost of 
 producing milk has declined since 1920 much more rapidly than trans- 
 portation, plant, and distribution costs. Low feed prices during 1921 
 and 1922 greatly decreased production costs. On the other hand, most 
 of the costs of handling the milk have decreased only a little or not at 
 all. Transportation rates have been lowered slightly; coal and supplies, 
 particularly horse feed, have tended downward; but labor, one of the 
 chief items of cost in distributing milk, is still at the peak. An example 
 of this is the amount the retail drivers receive for delivering a bottle of 
 milk. 1 The milk drivers' union has obtained for the drivers a guaran- 
 teed minimum wage of $45 for a week of six days and in addition a 
 commission of six-tenths of a cent for each point 2 sold above 1,333 
 points a week. 
 
 "December, 1924. 
 
 *A half-pint of milk counts as one-half point. With this exception, each bottle of 
 milk, cream, or buttermilk counts at least as much as a point regardless of whether it is 
 a quart, pint, or half-pint. A few products count as more than one point. Butter is 
 usually handled on a cash commission basis of one cent a pound. 
 
192S~[ MARKETING MILK IN CHICAGO DAIRY DISTRICT 513 
 
 The sales per driver vary widely, but an estimate, based on the 
 records of 58 retail dealers included in Table 14, makes the average for 
 the city as a whole about 250 points. On this basis the average amount 
 received by the drivers would be approximately 3.1 cents for each bottle 
 of milk, cream, or buttermilk delivered. 1 This does not include the 
 salaries of route inspectors nor allow for the annual vacation of the 
 drivers. 
 
 Thus the high plant and distribution costs have prevented the 
 dealers handling margin from decreasing to any extent. With the cost 
 of producing milk much lower than it was during 1918, 1919, and 1920, 
 the inevitable result has been a change in the proportionate amount of 
 the consumer's dollar which goes to the producer. As was stated before, 
 the share remaining in the dealers' hands was still further increased by 
 the large amount of surplus during 1921 and 1922, which could be used 
 only for cream and for the manufacture of lower priced products. 
 
 RELATION BETWEEN SIZE OF BUSINESS AND AMOUNT OF SURPLUS 
 
 The amount of surplus milk handled in 1922 was very high for all 
 but the smaller dealers. Table 32 shows the relation between the size 
 of business and the relative amount of surplus milk handled during the 
 season of heaviest production and the season of shortage. Since the 
 figures are based on the amount of surplus milk at two particular 
 seasons of the year, they are not comparable with the total annual 
 surplus of Company A or Company B (Table 31). 
 
 The smaller dealers handled relatively less surplus than the larger 
 dealers during both the season of heavy production and the season of 
 light production. Thus, for the three groups of dealers handling less 
 than 20,000 pounds of milk daily, the May and June surplus ranged 
 from 21 to 30 percent of the total amount of milk purchased, while the 
 August and September surplus ranged from about 3 percent to 10 per- 
 cent. The surplus of these small dealers is kept at a minimum during 
 the season of light production because they depend largely on jobbers 
 for their cream supply and frequently make up any shortage of milk by 
 purchase from jobbers or from the larger dealers. The May and June 
 surplus is also relatively small, due to the fact that most of the small 
 dealers draw their milk supply from the inner district, where the 
 seasonal production is more nearly uniform (Table 9). 
 
 The larger dealers, on the other hand, must go farther for a part of 
 their supply, drawing on the regions where the seasonal variation in 
 production is much greater. This results in a very large May and June 
 surplus, ranging from 39 to 48 percent of the total purchases for the three 
 larger groups of dealers. Even the" August and September surplus is 
 
 '45 .00 + $45.00 + 3.006 [(7) (250) 1333] 
 
 .03 1 
 
 7(250) 
 
514 
 
 BULLETIN No. 269 
 
 {.June, 
 
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 9 
 
1925} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 515 
 
 relatively large because, unlike the small dealers, they cannot depend 
 wholly on jobbers and other dealers in case of an emergency. It is one 
 thing for a small dealer to buy a few hundred pounds of milk to fill a 
 sudden shortage of 5 or 10 percent and another thing for a large dealer 
 to find several thousand pounds to supply a similar shortage. This does 
 not mean that the larger dealers do not buy milk from jobbers or from 
 each other when the need arises, but the amounts available from such 
 sources are, of course, limited. 
 
 SEASONAL VARIATION IN AMOUNT OF SURPLUS 
 
 Since the production of milk shows a wide seasonal variation and 
 the consumption of milk shows somewhat less variation, it is to be 
 
 TABLE 33. SEASONAL VARIATION IN AVERAGE AMOUNT OF SURPLUS MILK HANDLED 
 BY Two COMPANIES DURING THE THREE-YEAR PERIOD 1920 TO 1922 
 
 Month 
 
 COMPANY A 
 
 COMPANY B 
 
 Percentage 
 surplus was 
 of total 
 milk 
 purchased 
 
 Percentage 
 variation when 
 average surplus 
 for 36 months 
 = 100 percent 8 
 
 Percentage 
 surplus was 
 of total 
 milk 
 purchased 
 
 Percentage 
 variation when 
 average surplus 
 for 36 months 
 = 100 percent" 
 
 January 
 
 33.7 
 36.9 
 38.7 
 39.9 
 45.3 
 43.5 
 30.9 
 25.9 
 18.1 
 20.4 
 20.4 
 28.9 
 
 104.4 
 122.2 
 132.6 
 137.5 
 170.6 
 162.9 
 87.2 
 64.4 
 40.7 
 48.2 
 49.9 
 79.4 
 
 17.4 
 20.0 
 25.9 
 32.0 
 42.7 
 42.5 
 33.3 
 30.6 
 23.5 
 18.8 
 12.8 
 14.1 
 
 64.6 
 74.5 
 100.7 
 131.4 
 198.4 
 195.3 
 123.0 
 105.3 
 77.2 
 58.9 
 32.7 
 37.5 
 
 February 
 
 March 
 
 April 
 
 May 
 
 June 
 
 July... 
 
 August 
 
 September ' 
 
 October 
 
 November 
 
 December 
 
 
 Total 
 
 32.8 
 
 100.0 
 
 27.3 
 
 100.0 
 
 8 Corrected for secular trend. 
 
 expected that the amount of surplus will also vary at different seasons 
 of the year. Naturally this variation will depend on the year and also 
 on the region from which any individual dealer may obtain his supply. 
 Table 33 shows the average seasonal variation in the amount of 
 surplus milk handled by two large companies. Company A had over 
 four times as much surplus in May and June as it did in September. 
 Company B, on the other hand, had about six times as much surplus 
 in May and June as it did in November. The latter company obtained 
 a considerable part of its supply from the Swiss-cheese region of Wis- 
 consin, where spring-freshening cows predominate. Altho this still 
 further increased the May and June surplus, it tended to maintain 
 the supply during the late summer, when production- in the inner dis- 
 
516 BULLETIN No. 269 [/', 
 
 trict was lowest (page 485). As a result, this company had the least 
 amount of surplus during November and December. 
 
 Data on the amount of surplus milk were obtained from Company 
 A, by months, for a period of seven years. During four of the seven 
 years the heaviest surplus came in June, while for the other three years 
 May showed the greatest surplus. September was the month of least 
 surplus for four years, while August, October, and November each had 
 the least surplus one year. 
 
 During the three years covered by the data obtained from Com- 
 pany B, May twice showed the greatest surplus and June once. 
 November, December, and January each showed the least surplus dur- 
 ing one year. 
 
 From the above it may be seen that individual companies may 
 have seasonal variations in the amount of surplus milk which do not 
 coincide with the seasonal variations for the city as a whole. In general, 
 however, dealers expect the least amount of surplus in the late summer 
 and early autumn. The surplus increases gradually until the cows are 
 turned on pasture early in May. For two months, May and June, the 
 surplus is extremely large. In July, a combination of factors such as 
 hot weather, flies, short pastures, and advanced lactation for the fall- 
 freshening cows, brings a sudden drop in production which is only 
 partly offset by the decreased demand (Table 18). The result is a 
 decline in the amount of surplus milk, which is much more abrupt than 
 any of the other seasonal changes. The further decline to the low point 
 of the year is more gradual. 
 
 DAILY VARIATION IN AMOUNT OF SURPLUS 
 
 The reason that a certain amount of surplus milk must be carried 
 at all times by the dealers becomes apparent from a study of the day- 
 to-day variations. It was shown (Table 21 and Fig. 8) that the con- 
 sumption of milk varies with the days of the week. Thus, on Sunday 
 the demand for quarts of milk is about 5 percent above normal, while 
 for pints it is far below normal; the demand for pints on Saturday is 
 little better. The school trade in half-pints is entirely lacking on both 
 Saturday and Sunday, and the sale of bulk milk also falls. The result 
 is a decided increase in the amount of surplus milk on these days. For 
 Company A (Table 34), the average daily surplus in 1922 amounted 
 approximately to 37 percent of the total milk purchased for Saturday 
 and 40 percent for Sunday, as compared with an average of approxi- 
 mately 34 percent for the other days. In other words, even had it been 
 possible for this company to have eliminated all surplus on the other 
 days of the week, it would have still been compelled to handle surplus 
 milk amounting approximately to 4.5 percent of its purchases for Satur- 
 day and 6.9 percent for Sunday. A compensating feature of this Satur- 
 day and Sunday surplus, however, lies in the fact that it comes at a 
 
1925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 517 
 
 very opportune time, as the milk can be separated to meet the heavy 
 Sunday demand for cream (Table 21 and Fig. 8). 
 
 These week-end fluctuations in the amount of surplus milk are 
 shown clearly by Fig. 10. In addition, this chart shows that there are 
 
 TABLE 34. VARIATION, BY DAYS OF WEEK, IN AMOUNT OF SURPLUS 
 
 MILK HANDLED BY COMPANY A IN 1922 
 Average daily surplus expressed in percentage of total 
 amount of milk purchased 
 
 Day of sale a 
 
 Percentage 
 surplus was 
 of total 
 purchased 15 
 
 Range in amount 
 of surplus above 
 Friday 
 minimum 
 
 Sunday 
 
 39.8 
 
 6.9 
 
 Monday 
 
 35.4 
 
 2 5 
 
 Tuesday 
 
 33 9 
 
 1 
 
 Wednesday 
 
 33.9 
 
 1.0 
 
 Thursday 
 
 33 * 
 
 6 
 
 Friday 
 
 32 9 
 
 o 
 
 Saturday 
 
 37.4 
 
 4.5 
 
 a As milk is bottled the day previous to its sale, the 
 surplus comes upon the day preceding the sale. 
 b Simple averages. 
 
 sudden violent drops in the amount of surplus milk. Thus, the amount 
 of surplus on Sunday, June 4, 1922, amounted to 123.8 percent of the 
 bottled and bulk milk sales. On Sunday, June 11, the surplus was only 
 97.9 percent, a decrease in one week amounting to over one-fourth of 
 the bottled and bulk milk sales. Similar abrupt declines in the amount 
 of surplus milk occurred in July, August, and September. On several 
 occasions, a single day's decrease in surplus, other than the regular 
 daily variation, amounted to as much as 10 percent of the fluid-milk 
 sales. 
 
 These declines are due to increases in the demand for milk or de- 
 creases in the supply. Frequently both factors operate at the same 
 time. Thus the drop in the amount of surplus milk which occurred in 
 the early part of June, 1922, was due both to the increased demand and 
 to the decreased production resulting from the unseasonable heat, the 
 temperature at Chicago reaching a maximum of 90 degrees on June 9. 
 The late June decline, on the other hand, was due largely to decreased 
 production. At this time pastures were very short owing to dry weather, 
 only 0.65 inch of rain having fallen in northern Illinois during June. 
 
 The abnormal decreases occurring in July, August, September, and 
 October, 1922, were due largely to hot weather which decreased the 
 production and at the same time stimulated consumption. The big 
 drop in the early part of September resulted from the combined factors 
 of extremely hot weather (maximum temperature 98 degrees, Sep- 
 tember 2) and the return of most of the summer vacationists for the 
 opening of school. 
 
518 
 
 BULLETIN No. 269 
 
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MARKETING MILK IN CHICAGO DAIRY DISTRICT 519 
 
 It is evident from the foregoing that a certain amount of surplus 
 must be carried in order to guard against shortage arising from these 
 sudden changes in supply and demand. Individual dealers, particularly 
 the smaller ones, may shift the burden to jobbers, or other dealers, by 
 depending on purchases from these sources to make up any shortage. 
 In order to maintain a margin of safety, however, for the city as a 
 whole, it appears that a surplus of something like 20 percent of the 
 bottled and bulk-milk requirements should be carried during the sum- 
 mer. Had the margin been less than this during 1922, shortages 
 would have occurred on a number of occasions. It should be noted, 
 however, that during 1922 the surplus handled by Company A fell as 
 low as 20 percent only for a very short period in the late summer. Dur- 
 ing six months of the year the surplus ranged from 50 percent to 125 
 percent of the bottled and bulk-milk sales. The least surplus on any one 
 day occurred on September 11 and amounted to 9 percent of the next 
 day's sales. Even had the total year's supply been sufficiently reduced 
 so that on this day there was no surplus, the surplus for the rest of the 
 year would still have amounted to 41.1 percent of the bottled and bulk- 
 milk sales, thru the maladjustment of production and consumption. 
 
 THE UTILIZATION OF SURPLUS MILK 
 
 It may be seen from Table 14 that the amount of milk which must 
 be separated to supply Chicago's daily demand for cream is approxi- 
 mately 60 percent as great as the amount that is sold as bottled and 
 bulk milk. Naturally, any surplus milk which a dealer has after filling 
 the demand for bottled and bulk milk will be separated. If this surplus 
 does not give sufficient cream to supply his trade, he can make up the 
 deficit by contracting for daily shipments of cream from one of the 
 more remote parts of the dairy district, or by purchases from jobbers 
 or other dealers. If the surplus is more than sufficient to supply his 
 cream needs, it must be utilized in a still less profitable way. Butter is 
 the product that is most generally made. Whether the cream is sold 
 as such or made into butter, there remains the skim milk which can 
 be utilized in various ways. 
 
 Table 35 shows the methods of utilizing surplus milk as reported 
 by the dealers included in Table 32. Condensed and evaporated milk 
 is ordinarily made from whole milk, while milk powder is almost always 
 made from skim milk. American cheese may be made from whole milk 
 during one or two months of the spring. Some dealers whose plant 
 equipment does not include condensing pans sell their surplus to 
 evaporated milk companies located in the immediate territory. 
 
 Detailed figures on the utilization of whole milk were obtained 
 from two companies. Tables 36 and 37 show the relative amounts of 
 milk which were sold as bulk and bottled milk or used for other dairy 
 products. During the season of heavy production, a large amount of 
 butter is made from separated cream, but data on the amount used for 
 
520 
 
 BULLETIN No. 269 
 
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7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 521 
 
 this purpose are not available. Neither was it possible to compute the 
 amount of shrinkage for Company B, but as the loss is relatively 
 small no deduction has been made from the amount shown as having 
 been separated for cream. 
 
 TABLE 36. UTILIZATION OF ALL MILK PURCHASED BY COMPANY A DURING THE SEVEN- 
 YEAR PERIOD 1916 TO 1922 
 
 Disposal 
 
 Percentage of total purchases 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 1922 
 
 Bottled milk 
 
 56 2 
 
 63 
 
 68.0 
 5.9 
 4.0 
 
 60.2 
 6.7 
 1 7 
 1.3 
 9 
 
 63.4 
 8.2 
 
 .4 
 .5 
 
 58.3 
 7.0 
 2.5 
 
 3.5 
 
 58.5 
 7.0 
 .3 
 2.8 
 
 Bulk milk 
 
 4.9 
 3.1 
 
 5.3 
 8.0 
 
 Sold to manufacturers 
 
 Evaporated milk 
 
 Condensed milk 
 
 
 
 
 Cheese 
 
 
 
 
 .7 
 19.6 
 .8 
 
 26^8 
 
 .7 
 
 2s!o 
 
 .7 
 
 .2 
 30.7 
 .5 
 
 Separated for cream 
 
 34.4 
 1.4 
 
 23.0 
 
 .7 
 
 21.2 
 .9 
 
 Shrinkage 
 
 
 Total 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 The relative amounts of milk utilized for various purposes are 
 shown for each month by Figs. 11 and 12. These charts show also the 
 great variation in the seasonal production of milk and the large propor- 
 tion of surplus milk which was handled during 1921 and 1922. 
 
 The large amount of skim milk resulting from separating the sur- 
 plus handled by Company A was utilized. as indicated by Table 38 and 
 
 TABLE 37. UTILIZATION OF ALL MILK PURCHASED BY COMPANY B 
 DURING THE THREE-YEAR PERIOD 1920 TO 1922 
 
 Percentage of total purchases 
 
 uisposai 
 
 1920 
 
 1921 
 
 1922 
 
 Bottled milk 
 
 75.9 
 
 68.0 
 
 68.8 
 
 Bulk milk 
 
 3.0 
 
 2.2 
 
 1.7 
 
 Separated for cream* 
 
 21.1 
 
 29.8 
 
 29.5 
 
 
 
 
 
 Total 
 
 100.0 
 
 100.0 
 
 100.0 
 
 "Also includes shrinkage. 
 
 Fig. 13. A limited amount of skim milk was taken by bakeries and 
 other industries, but this outlet was of minor importance. "Buttermilk" 
 (pure culture ripened skim milk) offered a method of disposing of a 
 certain amount, as did also cottage cheese. By far the greatest propor- 
 tion, however, had to be utilized in other ways. The manufacture of 
 milk powder was one of the principal methods of utilizing skim milk, 
 but because of the low price of this product during 1921 and 1922 
 Company A arranged for the sale of most of the skim milk to farmers 
 for feeding purposes. At certain times curd was sold to casein factories, 
 
522 
 
 BULLETIN No. 269 
 
 {June, 
 
 and for the first four months of 1920 a small amount of evaporated 
 skim milk was made. 
 
 | Shrinkage 
 
 Condensed ewporated '$ cheese 
 Separated for cream 
 Sold to other dealers $ mfars. 
 Bulk, city trade 
 Bottled, city trade 
 
 JFHAMJJASOHO JTMUJJ/ISOHO JFUAUJJASOND JFUAMJJASOHD JFMMJJASOND JfHAUJJASOND , 
 
 1916 1917 1918 1919 1920 1921 
 
 1922 
 
 FIG. 11. UTILIZATION OF MILK PURCHASED BY COMPANY A DURING THE SEVEN-YEAR 
 
 PERIOD 1916 TO 1922 
 
 Note the large proportion of surplus milk during 1921 and 1922 and the wide 
 variation in the amount of surplus in the different months. During some months less 
 than half of the milk purchased is sold in fluid form. The rest is separated for 
 cream or manufactured. Drawn to scale, with the month of highest purchase (May, 
 1922) equal to 100. 
 
 Some plants are not equipped to utilize skim milk to the best ad- 
 vantage, so that occasionally during the flush season of production 
 large quantities are dumped in the sewers. This dumping is more com- 
 monly practiced by companies having no country plants where the 
 
 TABLE 38. UTILIZATION OF SKIM MILK OBTAINED BY SEPARATING SURPLUS MILK OF 
 COMPANY A DURING THE SEVEN-YEAR PERIOD 1916 TO 1922 
 
 Disposal 
 
 Percentage of total amount of skim milk 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 1922 
 
 Sold in Chicago 
 
 33.3 
 9.2 
 13.9 
 16.5 
 13.7 
 13.4 
 
 34.8 
 10.7 
 2.6 
 30.0 
 14.8 
 7.1 
 
 32.2 
 10.5 
 1.3 
 41.2 
 6.3 
 8.5 
 
 21.3 
 13.5 
 .4 
 52.4 
 6.0 
 6.4 
 
 8.8 
 11.7 
 5.1 
 49.0 
 16.4 
 3.6 
 5.4 
 
 6.0 
 10.1 
 54.7 
 15.9 
 9.5 
 3.8 
 
 4.7 
 8.5 
 54.2 
 24.8 
 7.8 
 
 Buttermilk 
 
 Sold to farmers 
 
 Milk powder 
 
 Cheese 
 
 Casein. . . . 
 
 Evaporated milk 
 
 
 
 
 
 
 Total 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
 100.0 
 
7925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 523 
 
 whole milk can be separated and the skim milk returned to the farmer. 
 This waste is usually decried by newspapers and is sometimes char- 
 acterized as an attempt to 
 destroy a part of the supply for 
 the purpose of maintaining high 
 prices. Waste it undoubtedly is, 
 but with no profitable method 
 of utilizing all the skim milk no 
 other course is open. The low 
 value of skim milk as compared 
 with the high cost of bottling and 
 distribution makes its sale on 
 retail routes uneconomical. 
 
 RELATION BETWEEN PRICES OF 
 
 SWEET CREAM AND 
 
 WHOLE MILK 
 
 It was stated previously 
 (page 511) that many small and 
 some large dealers purchase a 
 part or all of their cream from 
 jobbers or directly from the 
 country. The advantage of this 
 procedure under normal condi- 
 tions is indicated by Table 39 
 and Fig. 14, which show the price 
 per gallon for 36-percent sweet 
 cream delivered by jobbers to 
 city plants and the cost of an 
 equivalent amount of 3.5-percent 
 milk purchased at country plants. 
 In the case of the whole-milk 
 equivalent, no allowance has been 
 made for the cost of separating 
 and transporting the cream, 
 or for the value of the skim milk. 
 
 The comparison is directly between the price of a gallon of 36-percent 
 cream at the city plant and the price of 85.4 pounds of 3.5-percent milk 
 (its equivalent) in the country. Obviously this does not give an exact 
 comparison of the cost of cream obtained in the two different ways, 
 but it does show the change in the relative costs that took place during 
 the summer of 1921. 
 
 During 1918, 1919, and 1920, the average cost of a gallon of 36-per- 
 cent cream purchased as whole milk was 37 cents greater than the 
 
 FIG. 12. UTILIZATION OF MILK PURCHASED 
 BY COMPANY B DURING THE THREE- 
 YEAR PERIOD 1920 TO 1922 
 
 The surplus during 1921 and 1922 was 
 large for this company also, but the winter 
 surplus was relatively less than in the case 
 of Company A, which did not get so large 
 a proportion of milk from the Swiss-cheese 
 region. Drawn to scale, with the month of 
 highest purchase (May, 1922) equal to 100. 
 
524 
 
 BULLETIN No. 269 
 
 \_June, 
 
 - 
 
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 s 
 
1925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 525 
 
 jobbing price. For approximately half the 36 months included in this 
 period, the difference was more than 50 cents a gallon. At such times, 
 the surplus milk separated for cream made a relatively expensive 
 source of supply, but with the prevailing system of buying milk, which 
 required the dealers to take all the milk produced by their regular 
 
 FIG. 13. UTILIZATION OF SKIM MILK OBTAINED BY SEPARATING THE SURPLUS MILK 
 
 NOTED IN FIG. 11 
 
 Part of the skim milk classed under the different products was manufactured by 
 Company A and part was manufactured by other companies to which it was sold. 
 During 1921 and 1922 a very large part of the skim milk was sold to farmers for 
 feeding purposes because the price of milk powder was too low for profitable manu- 
 facture. Drawn to scale, with the largest amount of skim milk during one month 
 (June, 1922) equal to 100. 
 
 patrons, no advantage could be taken of the lower jobbing prices. Dur- 
 ing the months of heaviest production, however, the price of cream 
 purchased as whole milk was as low, or lower, than the price of cream 
 obtained from the jobbers and little could have been gained by buying 
 cream from them. 
 
 From September, 1921, to December, 1922, sweet-cream prices 
 stood in an entirely different relationship to whole-milk prices. During 
 this period there was very little difference in the cost of cream when 
 purchased in the form of whole milk and its cost when purchased from 
 jobbers, the large surplus of milk having depressed the fluid price to an 
 abnormally low level. 
 
526 
 
 BULLETIN No. 269 
 
 THE COURSE OF MILK PRICES 
 
 {.June, 
 
 The course of milk prices in the Chicago dairy district for the last 
 twenty years has not been unlike that in many other great city markets. 
 From 1904 to 1915 the average annual increase was 4.7 cents a hundred 
 pounds, or 3.4 percent of the average price for the period (Table 40). 
 As is usually the case, milk prices lagged behind prices of other agri- 
 
 325 
 3.00 
 275 
 2.50 
 225 
 ZOO 
 
 1:75 
 
 1.50 
 US 
 1.00 
 75 
 .50 
 .25 
 
 Purchased as whole milk at country plants 
 Pvrcfnstcf as crtam - dtliverid to city plants 
 
 1918 
 
 1919 
 
 JFMAUJJ4 SOHOUFHAUJJASOND JFUAHJJAS OND JFM4MJJASONO JFU4HJJ430ND 
 
 1920 
 
 1921 
 
 1.50 
 1.25 
 1.00 
 75 
 .Sff 
 25 
 
 1922 
 
 FIG. 14. COMPARISON OF PRICE OF 36-PERCENT CREAM DELIVERED BY 
 
 A JOBBER TO DISTRIBUTORS' CITY PLANTS AND COST OF AN 
 
 EQUIVALENT AMOUNT OF CREAM PURCHASED AS 
 
 WHOLE MILK AT COUNTRY PLANTS 
 
 Before 1921, distributors could buy cream from jobbers for less 
 than they could buy whole milk and separate the cream, but as a 
 result of the surplus production during 1921 and 1922 there was very 
 little difference in cost in those years (85.4 pounds of 3.5-percent 
 milk = 1 gallon of 36-percent cream). 
 
 cultural products and as a result the producers withheld their milk in 
 April, 1916, until their demands for increased prices were met. The 
 increase in price during the period September, 1915, to September, 1917, 
 was fairly rapid (14.4 percent of the average), but not so great as that 
 of feeds or grains. Consequently, the producers demanded and obtained 
 a very large increase for October, 1917. This was followed by a period 
 of high prices marked by indictments, the appointment of milk commis- 
 sions, milk strikes, price fixing, and the formation of the Milk Producers 
 Cooperative Marketing Company. 
 
MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 527 
 
 Prices broke in November, 1920, and in one year dropped to about 
 half the previous level. This statement refers to the prices paid by 
 dealers. Most of the milk was sold thru the marketing organization 
 during 1919, 1920, and 1921, and after the administrative expenses and 
 the loss on surplus were deducted, the producers received prices ranging 
 from 50 to 99 percent of the prices paid by the dealers. 1 From Novem- 
 ber, 1921, to September, 1924, prices increased rapidly, and for the last 
 year of the period averaged about 75 percent above the pre-war level. 
 
 TABLE 40. TREND IN PRICES PAID BY DEALERS FOR 3.5-PERCENT MILK AT COUNTRY 
 
 PLANTS IN CHICAGO DAIRY DISTRICT* 
 Yearly changes in price expressed in percentage of average price for period 
 
 Period 
 
 Number of 
 years 
 
 Average annual 
 change in price 
 
 January, 1904-August, 1915 
 
 11.7 
 2.1 
 3.1 
 1.0 
 2.9 
 
 cents 
 +4.7 
 +26.7 
 + 16.7 
 -113.5 
 +37.3 
 
 perct. 
 +3.4 
 +14.4 
 +5.3 
 -50.2 
 + 16.5 
 
 September, 1915-September, 1917 
 
 October, 1917-October, 1920 
 
 November, 1920-October, 1921 
 
 November, 1921-September, 1924 
 
 "Method of least squares. 
 
 ALTERNATIVE MARKETS FOR MILK 
 
 With the great surplus-milk region to the north of the Chicago 
 dairy district, and with the slight cost necessary to divert this milk to 
 the city market, the relative prices of milk used for various purposes 
 are highly significant to the dairymen now supplying that market. If 
 the Chicago price is maintained at an artificially high level, the Wiscon- 
 sin farmers now selling to creameries, cheese factories, or condenseries 
 will grasp the opportunity to share the advantages thus offered. If, on 
 the other hand, the Chicago milk prices fall too low in relation to the 
 prices offered for milk for other purposes, many dairymen in the dis- 
 trict are so situated that one or more alternative markets are available. 
 Tables 41 to 44 show the prices paid in these various markets during 
 the ten-year period 1913 to 1922. 
 
 Condensery Market. From 1913 to the middle of 1920, condensery 
 prices, both in the inner and outer districts, averaged approximately the 
 same as the Chicago fluid-milk price, but with the breakdown of export 
 demand and the accumulation of unsold stocks, sharp price cuts were 
 made. For 1920, 1921, and 1922 condensery prices were approximately 
 10 percent below the city price. 
 
 The seasonal variation in the price paid by near-by condenseries 
 is very similar to that of the city fluid-milk price. The plants located 
 just outside the Chicago district, however, pay prices which tend to be 
 relatively higher in summer and lower in winter. 
 
 A, Appendix. 
 
528 
 
 BULLETIN No. 269 
 
 [June, 
 
 Foreign-Type Cheese Factories. During this ten-year period milk 
 for the manufacture of foreign-type cheese brought a little over 80 
 
 TABLE 41. AVERAGE PRICES OF 3.5-PERCENT MILK AT COUNTRY PLANTS IN THE 
 CHICAGO TERRITORY 
 
 Year 
 
 Fluid 
 milk 
 for 
 Chicago 
 market 
 
 Av. of 6 
 conden- 
 series in 
 Chicago 
 district 
 
 Av. of 9 
 conden- 
 series 
 outside 
 Chicago 
 district 
 
 Av. of 3 
 foreign- 
 type 
 cheese 
 factories 
 
 Av. of 3 
 
 American 
 cheese 
 fac- 
 tories 
 
 b Value of 
 butter-fat 
 and 
 skim 
 milk 
 
 1913.. 
 
 $1.57 
 
 $1 57 
 
 $1 59 
 
 $1.31" 
 
 $ 
 
 $1.30 
 
 1914 . 
 
 1 60 
 
 1 58 
 
 1 57 
 
 1 12 a 
 
 
 1.23 
 
 1915 
 
 1 58 
 
 1 55 
 
 1 48 
 
 1 25 a 
 
 
 1 21 
 
 1916 
 
 1.72 
 
 1.72 
 
 1.71 
 
 1.75 a 
 
 1.60 
 
 1.43 
 
 1917 
 
 2.37 
 
 2.43 
 
 2.44 
 
 2.20" 
 
 2 08 
 
 1.90 
 
 1918 
 
 2.87 
 
 2.87 
 
 2.88 
 
 2.50 
 
 2 37 
 
 2 32 
 
 1919 
 
 3.25 
 
 3.25 
 
 3.27 
 
 2.61 
 
 2.62 
 
 2.66 
 
 1920 
 
 3.17 
 
 2.94 
 
 2.84 
 
 2.17 
 
 2.22 
 
 2.64 
 
 1921 
 
 2.09 
 
 1.87 
 
 1.74 
 
 1.57 
 
 1.55 
 
 1.71 
 
 1922 
 
 1.87 
 
 1.69 
 
 1.67 
 
 1.58 
 
 1.66 
 
 1.65 
 
 
 
 
 
 
 
 
 10-year 
 average . . 
 
 $2.21 
 
 $2.15 
 
 $2.12 
 
 $1.81 
 
 
 $1.81 
 
 Acknowledgment is due Mr. V. R. Wertz, Assistant Professor of Agricultural Econom- 
 ics at the State Agricultural College of South Dakota, for his courtesy in furnishing the 
 cheese factory prices and part of the condensery prices. 
 
 See Tables A, G, H, I, J, and K, Appendix, for monthly prices. 
 
 "Nine-month average, April to December. 
 
 b Butterfat prices are for sour cream delivered at Chicago, and skim milk is based on 
 the wholesale price of tankage (10 pounds of skim milk = 1 pound of tankage). 
 
 TABLE 42. COMPARISON OF PRICES PAID PRODUCERS FOR MILK USED IN VARIOUS WAYS 
 IN THE CHICAGO TERRITORY 
 
 Percentage of Chicago fluid-milk price 
 
 Year 
 
 Chicago 
 fluid- 
 milk 
 market 
 
 Conden- 
 series in 
 Chicago 
 district 
 
 Conden- 
 series 
 outside 
 Chicago 
 district 
 
 Foreign- 
 type 
 cheese 
 fac- 
 tories 
 
 American 
 cheese 
 fac- 
 tories 
 
 Value of 
 butterfat 
 and 
 skim milk 
 
 1913.. 
 
 100.0 
 
 100.0 
 
 101.3 
 
 85. 6 a 
 
 
 82.8 
 
 1914 
 
 100.0 
 
 98.8 
 
 98.1 
 
 72. 7 a 
 
 
 76.9 
 
 1915 
 
 100.0 
 
 98.1 
 
 93.7 
 
 81.7" 
 
 
 76.6 
 
 1916 
 
 100.0 
 
 100.0 
 
 99.4 
 
 97.7" 
 
 '93'6 
 
 83.1 
 
 1917 
 
 100.0 
 
 102.5 
 
 103.0 
 
 87. 6 a 
 
 87.8 
 
 80.2 
 
 1918 
 
 100.0 
 
 100.0 
 
 100.3 
 
 87.1 
 
 82.6 
 
 80.8 
 
 1919 
 
 100.0 
 
 100.0 
 
 100.6 
 
 80.3 
 
 80.6 
 
 81.8 
 
 1920 
 
 100.0 
 
 92.7 
 
 89.6 
 
 68.5 
 
 70.0 
 
 83.2 
 
 1921 
 
 100.0 
 
 89.5 
 
 83.3 
 
 75.1 
 
 74.2 
 
 81.8 
 
 1922 
 
 100.0 
 
 90.4 
 
 89.3 
 
 84.5 
 
 88.8 
 
 88.2 
 
 10-year 
 
 
 
 
 
 
 
 average . . 
 
 100.0 
 
 97.3 
 
 95.9 
 
 81.9 
 
 81. 5 b 
 
 81.9 
 
 a Nme-month average, April to December, for both fluid-milk and cheese-factory 
 prices; 12-month average for other years. 
 b Seven-year average, 1916 to 1922. 
 
1925} 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 529 
 
 percent of the Chicago price. The different years show wide variations, 
 ranging from 97.7 percent in 1916 to 68.5 percent in 1920. 
 
 This market is not ordinarily a year-round market, because of the 
 difficulty of making good foreign-type cheese in the winter. Milk of 
 
 TABLE 43. AVERAGE MONTHLY PRICES OF 3.5-PERCENT MILK. AT COUNTRY PLANTS IN 
 THE CHICAGO TERRITORY FOR THE TEN-YEAR PERIOD 1913 TO 1922 
 
 Month 
 
 Fluid 
 milk 
 for 
 Chicago 
 market 
 
 Av. of 6 
 conden- 
 series in 
 Chicago 
 district 
 
 Av. of 9 
 conden- 
 series 
 outside 
 Chicago 
 district 
 
 Av. of 3 
 foreign- 
 type 
 cheese 
 factories 
 
 8 Av. of 3 
 American 
 cheese 
 factories 
 
 b Value of 
 butterfat 
 and 
 skim milk 
 
 January. . 
 February. 
 March . . . 
 April 
 
 $2.43 
 2.29 
 2.13 
 2.08 
 
 $2.37 
 2.25 
 2.09 
 2.02 
 
 $2.33 
 2.21 
 2.09 
 2.02 
 
 $.... 
 L46 
 
 $2.26 
 2.03 
 1.89 
 1.66 
 
 $1.85 
 1.78 
 1.84 
 1 82 
 
 May 
 
 1.82 
 
 1 79 
 
 1.84 
 
 1.67 
 
 1.68 
 
 1 66 
 
 June 
 
 1.69 
 
 1.65 
 
 1.72 
 
 1.65 
 
 1.65 
 
 1.62 
 
 July . . 
 
 2.05 
 
 1.96 
 
 1.93 
 
 1.71 
 
 1.72 
 
 1 66 
 
 August. . . 
 September 
 October . . 
 November 
 December 
 
 2.29 
 2.23 
 2.51 
 2.52 
 2.49 
 
 2.19 
 
 2.22 
 2.38 
 2.42 
 2.46 
 
 2.11 
 
 2.17 
 2.27 
 2.36 
 2.38 
 
 1.81 
 2.06 
 2.07 
 2.14 
 2.05 
 
 1.82 
 2.11 
 
 2.35 
 2.53 
 2.48 
 
 1.69 
 1.82 
 1.91 
 1.99 
 2.03 
 
 Average. . 
 
 $2.21 
 
 $2.15 
 
 $2.12 
 
 
 
 $1.81 
 
 *Seven-year average, 1916 to 1922. 
 
 b Butterfat prices are for sour cream delivered at Chicago and skim milk is based on 
 the wholesale price of tankage (10 pounds of skim milk = 1 pound of tankage). 
 
 TABLE 44. COMPARISON OF AVERAGE MONTHLY PRICES PAID PRODUCERS FOR MILK 
 USED IN VARIOUS WAYS IN THE CHICAGO TERRITORY FOR THE TEN- YEAR PERIOD 
 
 1913 TO 1922 
 
 Percentage of Chicago fluid-milk price 
 
 Month 
 
 Chicago 
 fluid- 
 milk 
 market 
 
 Conden- 
 series in 
 Chicago 
 district 
 
 Conden- 
 series 
 outside 
 Chicago 
 district 
 
 Foreign- 
 type 
 cheese 
 factories 
 
 a American 
 cheese 
 factories 
 
 Value of 
 butterfat 
 and 
 skim milk 
 
 January. . 
 February. 
 March . . . 
 April 
 
 100.0 
 100.0 
 100.0 
 100.0 
 
 97.5 
 98.3 
 98.1 
 97.1 
 
 95.9 
 96.5 
 98.1 
 97.1 
 
 '7o!i 
 
 84.3 
 80.2 
 80.8 
 71.2 
 
 76.1 
 77.7 
 86.4 
 87.5 
 
 May 
 June 
 July 
 August. . . 
 September 
 October . . 
 November 
 December 
 
 100.0 
 100.0 
 100.0 
 100.0 
 100.0 
 100.0 
 100.0 
 100.0 
 
 98.4 
 97.6 
 95.6 
 95.6 
 99.6 
 94.8 
 96.0 
 98.8 
 
 101.1 
 101.8 
 94.1 
 92.1 
 97.3 
 90.4 
 93.7 
 95.6 
 
 91.8 
 97.6 
 83.4 
 79.0 
 92.4 
 82.5 
 84.9 
 82.3 
 
 81.6 
 85.1 
 73.2 
 69.5 
 83.7 
 83.3 
 90.7 
 90.2 
 
 91.2 
 95.9 
 81.0 
 73.8 
 81.6 
 76.1 
 79.0 
 81.5 
 
 Average. . 
 
 100.0 
 
 97.3 
 
 95.9 
 
 84. 5 b 
 
 81.5 
 
 81.9 
 
 "Seven-year average, 1916 to 1922. 
 b Nine-month average, April to December. 
 
530 
 
 BULLETIN No. 269 
 
 {June, 
 
 exceptionally high quality from grass-fed, spring-freshening cows is 
 necessary for the best results. Many factories require their patrons to 
 deliver the milk twice daily during the spring and summer. In winter 
 many factories close while others manufacture American-type cheese. 
 
 1907 1908 1909 1910 1911 1912 19/3 1914 1915 1916 19/7 1918 1919 1920 1921 1922 1923 
 
 FIG. 15. COMPARISON OF PRICE OF WHOLE MILK AT COUNTRY STATIONS AND 
 
 VALUE OF AN EQUIVALENT AMOUNT OF WHOLE MILK IN TERMS 
 
 OF BUTTERFAT AND SKIM MlLK 
 
 Butterfat prices are for sour cream delivered at Chicago and skim milk is 
 based on the wholesale price of tankage (10 pounds of skim milk = 1 pound of 
 tankage). Since butter can be easily stored and milk cannot, the winter price for 
 fat is relatively lower than the price for fluid milk. During the spring the large 
 amount of milk produced forces the fluid-milk price to approximately the butter- 
 fat and skim-milk level. (See Tables A and K, Appendix, for monthly values.) 
 
 The foreign-type cheese region offers a good field for the extension 
 of the Chicago dairy district, if the late summer shortage is to be met 
 by bringing in milk from outside the territory rather than by changing 
 the seasonal production of the inner district. 
 
 American Cheese Factories. Price data were available for seven 
 years only on these plants. During that time, the prices paid for milk 
 were approximately the same as those paid by the foreign-type cheese 
 factories. In the past, many American cheese factories closed in the 
 winter, but the increase in the number of silos has caused a shift in the 
 season of production. Relatively more cheese is now produced during 
 the winter than formerly even with the higher cost of barn feeding. 
 
19251 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 531 
 
 Butterfat Market. Practically every farmer in the Chicago dis- 
 trict and in the contiguous territory has a butterfat market for his 
 cream. This may be a local cooperative or proprietary creamery, a 
 centralizer cream station, or, at least, a railway station from which he 
 
 FIG. 16. COMPARISON OF WHOLE MILK AND BUTTERFAT PRICES FOR TEN YEARS, 1914 
 
 TO 1923, BY USE OF INDEX NUMBERS 
 
 
 
 The Chicago fluid-milk price is greatly affected by butter prices because of the 
 great surplus-milk producing region adjoining the district. Altho minor fluctuations and 
 seasonal variations may be unlike, the long-time trends of both butter and fluid-milk 
 prices are very similar. (See Tables C and L, Appendix, for monthly index numbers.) 
 
 can send his cream to a direct-shipment centralizer. Frequently all 
 these markets are available. 
 
 The prices received are normally lower than for milk in other 
 forms. To offset this disadvantage, the producer has the skim milk for 
 feeding young stock, hogs, and poultry, he is not required to make as 
 frequent deliveries, and he has less work and expense than if he were 
 producing milk under city health regulations. 
 
 After an allowance for the feeding value of skim milk is ad^ed to 
 the butterfat price, the butterfat market is seen to have paid slightly 
 over 80 percent of the Chicago milk price during the ten-year period 
 under consideration. The range was from 76.6 percent to 88.2 percent. 
 The relatively high price for fat occurred in 1922, when fluid-milk prices 
 were at an abnormally low level. 
 
 The winter prices for butterfat are relatively much lower than the 
 summer prices. In other words, the fluid-milk price falls almost to the 
 
532 BULLETIN No. 269 [June, 
 
 butterfat and skim-milk value .during the season of heaviest production. 
 This is illustrated by Fig. 15, which shows the value of 100 pounds of 
 milk on the two markets from 1907 to 1923. 
 
 The chart indicates, also, that fluid-milk prices in the Chicago 
 district are closely linked with butterfat prices. This is illustrated better 
 by Fig. 16, which shows index numbers of the two prices. Minor fluc- 
 tuations and seasonal variations may be unlike, but the long-time 
 trends are very similar. From the standpoint of alternative markets, 
 this is to be expected, particularly when it is remembered that the great 
 surplus region of Wisconsin borders the Chicago district. 
 
 PRICE DETERMINATION 
 
 No matter what plan of price determination is used in the Chicago 
 district, it seems obvious that the city fluid-milk price must always be 
 considered in relation to the prices of other dairy products for three 
 reasons : 
 
 1. During certain seasons a very large proportion of the milk 
 purchased for the city market must be utilized for other dairy products. 
 
 2. The city market is normally the most desirable. Dairymen 
 selling to the lower-paying markets are always glad, therefore, to divert 
 their milk to the city if prices are sufficient to overcome the obstacles of 
 distance and to pay for the extra work entailed. 
 
 3. Conversely, unless the city fluid-milk price is high enough to 
 pay for the additional care which is necessary, dairymen will shift to 
 one of the markets with less-exacting requirements. 
 
 The writer offers no "rule of thumb" method of price-making, but 
 suggests consideration of the following factors in arriving at prices: 
 
 1. Amount of Surplus Milk. If the fluid-milk trade utilizes most of 
 the supply or, as it is commonly expressed, "cleans up the market," an 
 increase in price may be justified. If, however, the surplus is accum- 
 ulating, an increase in price usually results in serious difficulties which 
 a constant or decreased price would have prevented. 
 
 2. Prices of Other Dairy Products. Because of the great sur- 
 plus-producing region adjoining the Chicago dairy district, the im- 
 portance of this factor in determining the price of milk cannot be too 
 strongly emphasized. It has been discussed fully in the preceding pages. 
 
 3. Cost of Feed and Labor. Since feed .and labor make up the 
 greater part of the cost of producing milk, changes in the cost of these 
 two items should be carefully noted because of their influence on the 
 probable supply of milk. Failure to do this in 1916, 1917, and 1918 
 resulted in a shortage of milk. Conversely, declining feed and labor 
 costs, without an equivalent decrease in price, result in over-production. 
 
 4. Pasture Conditions. Climatic conditions which cause either 
 abundant or short pasturage may necessitate temporary price adjust- 
 ments during the summer. 
 
1925~\ MARKETING MILK IN CHICAGO DAIRY DISTRICT 533 
 
 5. Trend in the Production of Milk per Farm. The average pro- 
 duction of milk per farm as shown by dealers' monthly purchase 
 records, is a good indication whether 'producers consider prices equi- 
 table. When prices are favorable, production increases; when prices are 
 low, production falls. Full advantage cannot be taken of this factor, 
 however, because of the natural lag in farm practice. When prices are 
 too high, production responds more quickly than when they are too low, 
 because dairymen tend to buy additional cows more readily than they 
 tend to sell a part of the herd. Abnormal pasture conditions may also 
 cause variations in the production per farm and thus affect the accur- 
 acy of this measure. 
 
 6. Trend of Consumption. Changes in consumption indicate to 
 some extent the consumers' views as to the equitableness of retail 
 milk prices. The value of this factor is lessened, however, because of 
 the inelasticity of demand, altho milk prices that are too high are likely 
 to cause a significant decline in consumption. 
 
 7. Relative Profitableness of Other Farm Enterprises. Since other 
 livestock enterprises and crops compete with dairying for land and 
 labor, any great differences in the profits of the various enterprises will 
 cause shifts from one to the other, thus affecting the supply of milk. 
 Such changes, however, usually require considerable time in which to 
 operate and are valuable only as a long-time guide to prices. 
 
 8. Trend in the Raising of Young Stock. Another long-time 
 measure of the proper adjustment of milk prices is the tendency of 
 dairymen to increase or decrease the raising of heifer calves in response 
 to profitable or unprofitable conditions. A permanent change in farm 
 practice, however, should not be confused with maladjustment of price. 
 Such a change is illustrated by the growing tendency of dairymen in the 
 most intensive districts to maintain their herds by purchase rather than 
 by raising young stock. 
 
 Careful attention to the above factors in price determination and 
 good judgment in their application would do much to stabilize dairying 
 in the Chicago district, by avoiding price maladjustments and the 
 resulting periods of over- and underproduction. 
 
 CONCLUSIONS 
 
 The greater part of Chicago's milk supply comes from regions in 
 northern Illinois and southern Wisconsin, where a large proportion of 
 the land is tillable. Crop-growing competes with dairying for labor and 
 this, together with the relatively high winter prices for milk which pre- 
 vailed until 1919, has resulted in the overdevelopment of winter dairy- 
 ing, while not enough milk is produced in late summer and early fall. 
 
 Since 1919 summer prices have been maintained at relatively 
 higher levels in an effort to stimulate production during the summer, 
 
534 BULLETIN No. 269 
 
 but with practically no effect on seasonal production in the inner part of 
 the district. It appears quite probable that before these high summer 
 prices have changed the seasonal production to any extent, large 
 amounts of milk will be attracted to the city market from the summer 
 dairying regions of Wisconsin. Perhaps, in the long run, the most 
 economical method of obtaining a relatively uniform supply thruout the 
 year will be to pay winter prices that are high enough to encourage 
 winter dairying in the inner district, where crop-growing is a major 
 enterprise, and to supplement the low summer production by bringing 
 in milk from the surplus-producing regions of Wisconsin, where a 
 smaller proportion of the land is tillable. 
 
 The demand for dairy products varies with the season, the day of 
 the week, and the temperature. These variations are fairly definite and 
 can therefore be predicted. Nevertheless, these whims of consumption 
 tend to increase the cost of handling milk and the price the consumer 
 pays must necessarily cover this cost. Altho changes in the retail prices 
 of pints and quarts of milk cause consumers to shift from one unit to 
 the other and to increase or decrease the demand, the net change 
 in consumption is very small, indicating that there is very little elasti- 
 city in the demand for milk. 
 
 During the period considered in this study, the amount of surplus 
 milk has been rapidly increasing. The large dealers have been bearing 
 a greater part of the surplus burden than the small dealers. Since the 
 former group constitutes the more important element in the demand side 
 in bargaining with the producers, this surplus has a very great influence 
 on milk prices. It is especially unfortunate that a large amount of 
 surplus milk comes in the winter, when production costs are high. There 
 is a certain amount of surplus that must be carried at all times because 
 of the variability of supply and demand, but this necessary surplus 
 is a cost of the business and should not unduly influence prices. 
 
 Altho the producers in the present Chicago dairy district will, in 
 all probability, hold their own in competition with the great surplus- 
 producing region to the north, they will meet with serious difficulties in 
 keeping their market unless they take this available supply into con- 
 sideration in bargaining with the dealers. In spite of the often ex- 
 pressed wish of the Chicago producers to "build a wall around the Chi- 
 cago dairy district," the dairymen in the surplus-producing regions will 
 always be potential competitors. Because of this fact, a city fluid-milk 
 price that is out of line with prices of other dairy products cannot be 
 maintained for any length of time. Hence, if producers in the Chicago 
 district are to further their own interests, they must use care not to force 
 fluid-milk prices to a point where dairymen in the surplus region will 
 be induced to seek the Chicago market. 
 
APPENDIX 
 
536 
 
 BULLETIN No. 269 
 
 [June, 
 
 TABLE A. AVERAGE PRICE PAID BY DEALERS FOR MILK AT COUNTRY PLANTS IN THE 
 
 CHICAGO DAIRY DISTRICT* 
 Per 100 pounds of 3.5-percent milk 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 Aver. 
 
 1907... 
 1908 
 
 $1.55 
 1 65 
 
 $1.45 
 1.65 
 
 31.35 
 1.55 
 
 $1.30 
 1.35 
 
 21.00 
 1.05 
 
 $ .90 
 .95 
 
 $1.00 
 1.05 
 
 $1.20 
 1.25 
 
 $1.30 
 1.35 
 
 $1.55 
 1.45 
 
 $1.65 
 1.55 
 
 $1.65 
 1.55 
 
 $1.33 
 1.37 
 
 1909 . . 
 
 1 55 
 
 1 55 
 
 1 45 
 
 1 40 
 
 1 10 
 
 .95 
 
 1 05 
 
 1 25 
 
 1 35 
 
 1 55 
 
 1 70 
 
 1 75 
 
 1 39 
 
 1910 
 
 1 75 
 
 1 70 
 
 55 
 
 1 45 
 
 1 20 
 
 1 05 
 
 1.20 
 
 1.30 
 
 1.40 
 
 1.70 
 
 1.90 
 
 2.00 
 
 1 52 
 
 1911 
 
 2 00 
 
 1.90 
 
 .70 
 
 1.30 
 
 1.10 
 
 1.00 
 
 1.30 
 
 1.45 
 
 1.45 
 
 .70 
 
 1.85 
 
 1.90 
 
 1.55 
 
 1912 
 
 1.85 
 
 1.80 
 
 .65 
 
 1.30 
 
 1.05 
 
 1.00 
 
 1.30 
 
 1.45 
 
 1.50 
 
 .60 
 
 1.75 
 
 1.80 
 
 1.50 
 
 1913 
 
 1 75 
 
 1 70 
 
 60 
 
 1 50 
 
 1 25 
 
 1 15 
 
 1.35 
 
 1.50 
 
 1.55 
 
 .75 
 
 1.85 
 
 1.90 
 
 1 57 
 
 1914 
 191S 
 
 1.90 
 1.85 
 
 1.75 
 1.75 
 
 .65 
 .65 
 
 1.50 
 1.45 
 
 1.25 
 1.20 
 
 1.10 
 1.10 
 
 1.35 
 1.30 
 
 1.55 
 1.55 
 
 1.55 
 1.55 
 
 .80 
 .80 
 
 1.90 
 1.90 
 
 1.90 
 1.90 
 
 1.60 
 
 1.58 
 
 1916. .. 
 
 1 85 
 
 1 75 
 
 65 
 
 1 65 
 
 1 45 
 
 1 25 
 
 1 55 
 
 1 70 
 
 1 70 
 
 .90 
 
 2 10 
 
 2.10 
 
 1 72 
 
 1917 
 
 2 05 
 
 2 00 
 
 85 
 
 2 40 
 
 2 00 
 
 1 60 
 
 2.12 
 
 2.30 
 
 2.30 
 
 3.42 
 
 3.22 
 
 3.22 
 
 2.37 
 
 1918 
 1919 . . 
 
 3.22 
 3 76 
 
 3.07 
 3 50 
 
 2.90 
 3 00 
 
 2.65 
 2 80 
 
 2.05 
 2 50 
 
 1.80 
 2 50 
 
 2.30 
 3 00 
 
 2.75 
 3 52 
 
 2.92 
 3 55 
 
 3.32 
 3.63 
 
 3.68 
 3.60 
 
 3.77 
 3.65 
 
 2.87 
 3 25 
 
 1920 
 
 3 60 
 
 3 35 
 
 2 90 
 
 2 75 
 
 2 70 
 
 2 75 
 
 3.20 
 
 3.70 
 
 3.70 
 
 3.70 
 
 3.05 
 
 2.60 
 
 3.17 
 
 1921 
 1922 
 
 2.50 
 1.80 
 
 2.35 
 1.70 
 
 2.35 
 1.70 
 
 2.35 
 1.70 
 
 2.05 
 1.70 
 
 2.05 
 1.60 
 
 2.30 
 2.00 
 
 2.30 
 2.05 
 
 1.50 
 2.00 
 
 1.75 
 2.05 
 
 1.80 
 2.05 
 
 1.80 
 2.10 
 
 2.09 
 1.87 
 
 1923 
 1924 
 
 2.50 
 2.675 
 
 2.50 
 2.675 
 
 2.40 
 2.675 
 
 2.40 
 2.50 
 
 2.30 
 2.30 
 
 2.25 
 2.30 
 
 2.75 
 2.50 
 
 2.75 
 2.60 
 
 2.75 
 2.60 
 
 2.75 
 2.40 
 
 2.75 
 2.40 
 
 2.75 
 2.40 
 
 2.57 
 2.50 
 
 a Up to April 1, 1913, flat price paid for milk of any test. 
 
 April 1, 1913, to October 1, 1915, 2 cents per point paid for milk testing above 3.7 
 percent; for milk testing below 3.6 percent, 2 cents per point deducted. 
 
 October 1, 1915, to April 1, 1916, difference of 3 cents per point up or down made on 
 3.6-percent base. 
 
 April 1, 1916, to July 1, 1918, difference of 3 cents per point up or down made on 3.5- 
 percent base. 
 
 July 1, 1918, to December 31, 1924, difference of 4 cents per point up or down 
 made on 3.5-percent base. 
 
 From January, 1919, to October, 1921, the dealers paid the Milk Producers Cooper- 
 ative Marketing Company agreed prices. After deducting the administrative expenses 
 and loss on surplus, the Marketing Company paid the following prices to producers: 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 Aver. 
 
 1919... 
 1920 
 1921 
 
 $3.72 
 3.56 
 2.25 
 
 $3.46 
 3.28 
 2.11 
 
 $2.97 
 2.75 
 2.11 
 
 $2.77 
 2.61 
 2.11 
 
 $2.42 
 2.62 
 1.02 
 
 $2.42 
 2.67 
 1.84 
 
 $2.97 
 3.10 
 1.84 
 
 $3.48 
 3.51 
 2.07 
 
 $3.51 
 3.33 
 1.35 
 
 $3.59 
 3.33 
 1.57 
 
 $3.56 
 2.74 
 (b) 
 
 $3.61 
 2.34 
 (b) 
 
 $3.21 
 2.99 
 
 b Milk checks for November and December, 1921, were held up. The Company dis- 
 continued business, and when reorganized gave bonds to cover these two months. 
 
 TABLE B. RETAIL PRICES OF MILK AND CREAM ON DELIVERY ROUTES IN CHICAGO 
 
 Date prices became effective 
 
 Quarts 
 of milk 
 
 Pints 
 of milk 
 
 Half-pints 
 of 22-percent 
 cream 
 
 Half-pints 
 of 32-percent 
 cream 
 
 Quarts of 
 butter- 
 milk 
 
 January 1, 1902... 
 
 cents 
 7 
 
 cents 
 4 
 
 cents 
 9 
 
 cents 
 
 cents 
 
 November 1, 1907 
 
 8 
 
 4 
 
 9 
 
 
 
 February 1, 1908 
 
 7 
 
 4 
 
 9 
 
 
 
 November 1, 1909 
 
 8 
 
 5 
 
 10 
 
 12 
 
 5 
 
 August 1, 1916 , 
 
 9 
 
 5 
 
 10 
 
 12 
 
 5 
 
 April 3, 1917 
 
 10 
 
 6 
 
 12 
 
 14 
 
 7 
 
 October 1, 1917 
 
 13 
 
 7 
 
 15 
 
 18 
 
 9 
 
 November 1, 1917 
 
 12 
 
 7 
 
 is 
 
 18 
 
 9 
 
 August 1, 1918 
 
 12.5 
 
 7 
 
 15 
 
 18 
 
 9 
 
 September 1, 1918 
 
 13 
 
 8 
 
 is 
 
 18 
 
 9 
 
 November 1, 1918... 
 
 14 
 
 8 
 
 15 
 
 18 
 
 10 
 
 March 1, 1919 
 
 13 
 
 8 
 
 15 
 
 18 
 
 10 
 
 May 20, 1919 
 
 14 
 
 8 
 
 15 
 
 18 
 
 10 
 
 August 1, 1919 
 
 15 
 
 9 
 
 16 
 
 20 
 
 10 
 
 March 1, 1920 
 
 14 
 
 9 
 
 16 
 
 20 
 
 10 
 
 July 1, 1920 
 
 IS 
 
 9 
 
 17 
 
 22 
 
 10 
 
 August 5, 1920 
 
 16 
 
 10 
 
 17 
 
 22 
 
 10 
 
 November 1, 1920 
 
 15 
 
 9 
 
 17 
 
 22 
 
 10 
 
 December 1, 1920... 
 
 14 
 
 9 
 
 17 
 
 22 
 
 10 
 
 February 1, 1921..., 
 
 14 
 
 8 
 
 17 
 
 22 
 
 10 
 
 September 1, 1921 
 
 12 
 
 7 
 
 16 
 
 21 
 
 10 
 
 December 1, 1922 
 
 12 
 
 8 
 
 16 
 
 21 
 
 10 
 
 January 8, 1923 
 
 13 
 
 8 
 
 16 
 
 21 
 
 10 
 
 Julv 1,1923 
 
 14 
 
 8 
 
 
 
 
1925] 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 537 
 
 TABLE C. INDEX NUMBERS OF PRICES PAID BY DEALERS FOR 3.5-PERCENT MILK AT 
 COUNTRY PLANTS IN THE CHICAGO DAIRY DISTRICT 
 Five-year average of each month (1909 to 1913) = 100 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 1907... 
 
 
 
 
 94 
 
 88 
 
 87 
 
 81 
 
 86 
 
 90 
 
 93 
 
 91 
 
 88 
 
 1908... 
 
 93 
 
 95 
 
 97 
 
 97 
 
 92 
 
 92 
 
 85 
 
 90 
 
 93 
 
 87 
 
 86 
 
 83 
 
 1909 
 
 87 
 
 90 
 
 91 
 
 101 
 
 96 
 
 92 
 
 85 
 
 90 
 
 93 
 
 93 
 
 94 
 
 94 
 
 1910 
 
 98 
 
 98 
 
 97 
 
 104 
 
 105 
 
 102 
 
 97 
 
 94 
 
 97 
 
 102 
 
 105 
 
 107 
 
 1911 
 
 112 
 
 110 
 
 107 
 
 94 
 
 96 
 
 97 
 
 105 
 
 104 
 
 100 
 
 102 
 
 102 
 
 102 
 
 1912 
 
 104 
 
 104 
 
 10* 
 
 94 
 
 92 
 
 97 
 
 105 
 
 104 
 
 103 
 
 96 
 
 97 
 
 96 
 
 1913 
 
 98 
 
 98 
 
 101 
 
 108 
 
 110 
 
 112 
 
 109 
 
 108 
 
 107 
 
 105 
 
 102 
 
 102 
 
 1914 
 
 107 
 
 101 
 
 104 
 
 108 
 
 110 
 
 107 
 
 109 
 
 112 
 
 107 
 
 108 
 
 105 
 
 102 
 
 1915 
 
 104 
 
 101 
 
 104 
 
 104 
 
 105 
 
 107 
 
 105 
 
 112 
 
 107 
 
 108 
 
 105 
 
 102 
 
 1916... 
 
 104 
 
 101 
 
 104 
 
 119 
 
 127 
 
 121 
 
 125 
 
 122 
 
 117 
 
 114 
 
 116 
 
 112 
 
 1917 
 
 115 
 
 116 
 
 116 
 
 173 
 
 175 
 
 155 
 
 171 
 
 165 
 
 159 
 
 206 
 
 178 
 
 172 
 
 1918 
 
 181 
 
 177 
 
 182 
 
 191 
 
 180 
 
 175 
 
 185 
 
 198 
 
 201 
 
 200 
 
 203 
 
 202 
 
 1919... 
 
 211 
 
 202 
 
 189 
 
 201 
 
 219 
 
 243 
 
 242 
 
 253 
 
 245 
 
 219 
 
 199 
 
 195 
 
 1920 , 
 
 202 
 
 J94 
 
 182 
 
 198 
 
 237 
 
 267 
 
 258 
 
 266 
 
 255 
 
 223 
 
 169 
 
 139 
 
 1921 
 
 140 
 
 136 
 
 148 
 
 169 
 
 180 
 
 199 
 
 185 
 
 165 
 
 103 
 
 105 
 
 99 
 
 96 
 
 1922.... 
 
 101 
 
 98 
 
 107 
 
 122 
 
 149 
 
 155 
 
 161 
 
 147 
 
 138 
 
 123 
 
 113 
 
 112 
 
 1923 
 
 140 
 
 145 
 
 151 
 
 173 
 
 202 
 
 218 
 
 222 
 
 198 
 
 190 
 
 166 
 
 1S2 
 
 147 
 
 1924 
 
 150 
 
 155 
 
 168 
 
 180 
 
 202 
 
 223 
 
 202 
 
 179 
 
 174 
 
 145 
 
 133 
 
 128 
 
 TABLE D. INDEX NUMBERS OF THE DEALERS' MARGIN BETWEEN RETAIL PRICE PER 
 QUART OF MILK AND PRICE PAID TO PRODUCERS AT COUNTRY PLANTS IN THE 
 
 CHICA&O DAIRY DISTRICT 
 Five-year average of each month (1909 to 1913) = 100 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 1903... 
 
 96 
 
 94 
 
 95 
 
 92 
 
 92 
 
 94 
 
 96 
 
 97 
 
 95 
 
 98 
 
 93 
 
 91 
 
 1904... 
 
 91 
 
 92 
 
 93 
 
 92 
 
 94 
 
 96 
 
 98 
 
 97 
 
 95 
 
 100 
 
 98 
 
 93 
 
 1905 
 
 94 
 
 99 
 
 97 
 
 92 
 
 94 
 
 96 
 
 98 
 
 97 
 
 95 
 
 100 
 
 98 
 
 96 
 
 1906 
 
 96 
 
 99 
 
 97 
 
 92 
 
 94 
 
 % 
 
 98 
 
 97 
 
 95 
 
 98 
 
 93 
 
 91 
 
 1907 
 
 91 
 
 94 
 
 95 
 
 88 
 
 90 
 
 90 
 
 94 
 
 92 
 
 91 
 
 86 
 
 108 
 
 111 
 
 1908 
 
 112 
 
 84 
 
 83 
 
 86 
 
 88 
 
 88 
 
 92 
 
 90 
 
 88 
 
 91 
 
 88 
 
 91 
 
 1909 
 
 91 
 
 89 
 
 88 
 
 84 
 
 86 
 
 88 
 
 92 
 
 90 
 
 88 
 
 86 
 
 105 
 
 106 
 
 1910 
 
 107 
 
 106 
 
 106 
 
 100 
 
 102 
 
 103 
 
 105 
 
 109 
 
 108 
 
 103 
 
 96 
 
 93 
 
 1911 
 
 94 
 
 97 
 
 100 
 
 109 
 
 105 
 
 105 
 
 102 
 
 101 
 
 103 
 
 103 
 
 98 
 
 98 
 
 1912... 
 
 102 
 
 101 
 
 102 
 
 109 
 
 107 
 
 105 
 
 102 
 
 101 
 
 101 
 
 108 
 
 103 
 
 104 
 
 1913 
 
 107 
 
 106 
 
 104 
 
 98 
 
 100 
 
 99 
 
 100 
 
 99 
 
 99 
 
 100 
 
 98 
 
 98 
 
 1914 
 
 99 
 
 104 
 
 102 
 
 98 
 
 100 
 
 101 
 
 100 
 
 97 
 
 99 
 
 98 
 
 96 
 
 98 
 
 1915 
 
 102 
 
 104 
 
 102 
 
 100 
 
 102 
 
 101 
 
 102 
 
 97 
 
 99 
 
 98 
 
 96 
 
 98 
 
 1916 
 
 102 
 
 104 
 
 102 
 
 92 
 
 90 
 
 96 
 
 90 
 
 111 
 
 114 
 
 117 
 
 108 
 
 111 
 
 1917 
 
 114 
 
 116 
 
 116 
 
 100 
 
 107 
 
 117 
 
 105 
 
 105 
 
 108 
 
 134 
 
 123 
 
 126 
 
 1918 
 
 127 
 
 131 
 
 132 
 
 130 
 
 141 
 
 146 
 
 137 
 
 137 
 
 144 
 
 139 
 
 147 
 
 146 
 
 1919 
 
 147 
 
 158 
 
 150 
 
 144 
 
 143 
 
 155 
 
 146 
 
 153 
 
 157 
 
 170 
 
 176 
 
 179 
 
 1920 
 
 183 
 
 191 
 
 178 
 
 167 
 
 152 
 
 144 
 
 156 
 
 168 
 
 172 
 
 191 
 
 206 
 
 210 
 
 1921 
 
 218 
 
 220 
 
 206 
 
 186 
 
 179 
 
 171 
 
 176 
 
 189 
 
 188 
 
 196 
 
 199 
 
 205 
 
 1922 
 
 206 
 
 205 
 
 192 
 
 174 
 
 156 
 
 153 
 
 150 
 
 158 
 
 166 
 
 179 
 
 184 
 
 187 
 
 1923... 
 
 193 
 
 188 
 
 181 
 
 163 
 
 150 
 
 146 
 
 156 
 
 168 
 
 172 
 
 191 
 
 196 
 
 202 
 
 1924 
 
 208 
 
 203 
 
 190 
 
 180 
 
 171 
 
 164 
 
 168 
 
 176 
 
 181 
 
 211 
 
 216 
 
 224 
 
 TABLE E. NUMBER OF BOTTLES HANDLED MONTHLY BY MILK DEALERS' BOTTLE 
 EXCHANGE DURING THE THREE YEARS 1920, 1921, 1922 
 
 
 19 
 
 20 
 
 19 
 
 21 
 
 19 
 
 22 
 
 Month 
 
 Received at 
 Exchange 
 
 Delivered to 
 dealer* 
 
 Received at 
 Exchange 
 
 Delivered to 
 dealers 
 
 Received at 
 Exchange 
 
 Delivered to 
 dealer* 
 
 
 15 134 
 
 396 
 
 906 340 
 
 731 107 
 
 1 394 358 
 
 1 387 375 
 
 
 701 998 
 
 746 070 
 
 1 067 370 
 
 1 125 705 
 
 1 332 765 
 
 1 063 113 
 
 March 
 
 983 313 
 
 964 789 
 
 081 475 
 
 1 050 813 
 
 1 636 239 
 
 1 662 729 
 
 April 
 
 972 768 
 
 993 933 
 
 264 913 
 
 320 524 
 
 1 579 322 
 
 1 548 322 
 
 May 
 
 1 034 200 
 
 1 054 614 
 
 254 921 
 
 266 921 
 
 2 741 640 
 
 2 372 003 
 
 
 1 075 679 
 
 1 037 799 
 
 481 560 
 
 411 453 
 
 2 748 440 
 
 2 875 033 
 
 July... 
 
 1 157 637 
 
 1 190 060 
 
 469 342 
 
 416 471 
 
 3 187 055 
 
 3 296 762 
 
 August 
 
 1 236 974 
 
 1 369 230 
 
 717 854 
 
 736 563 
 
 3 149 822 
 
 3 213 619 
 
 
 1 203 474 
 
 1 316 010 
 
 604 333 
 
 729 599 
 
 2 812 106 
 
 2 752 069 
 
 October 
 
 1 138 327 
 
 1 212 207 
 
 501 797 
 
 521 357 
 
 2 933 309 
 
 3 017 567 
 
 
 799 222 
 
 822 247 
 
 472 580 
 
 499 641 
 
 2 508 658 
 
 2 685 025 
 
 December 
 
 821 354 
 
 887 596 
 
 1 376 223 
 
 424 110 
 
 2 107 479 
 
 2 247 538 
 
 
 
 
 
 
 
 
 Total 
 
 11 140 080 
 
 11 594 951 
 
 16 198 708 
 
 16 234 264 
 
 28 131 193 
 
 28 121 155 
 
538 
 
 BULLETIN No. 269 
 
 [June, 
 
 TABLE F. RELATIVE CONSUMPTION OF PINTS AND QUARTS OF MILK IN DIFFERENT 
 
 PARTS OF CHICAGO, BY MONTHS 
 Based on average retail sales during the three-year period 1920 to 1922 
 
 Month 
 
 Pints of milk consumed for each 100 quarts 
 
 Section A 
 
 Section B 
 
 Section C 
 
 Section D 
 
 Section E 
 
 Oak Park 
 
 Evanston 
 
 All Chicago 
 and 
 suburbs 
 
 January. . . . 
 February. . . 
 March 
 
 15.4 
 15.2 
 14.6 
 15.3 
 16.6 
 17.9 
 18.6 
 18.9 
 17.7 
 17.1 
 16.6 
 13.9 
 
 22.1 
 
 22.2 
 21.8 
 22.9 
 24.7 
 26.7 
 27.6 
 27.7 
 26.2 
 25.3 
 24.4 
 20.9 
 
 20.9 
 21.2 
 20.9 
 21.8 
 23.0 
 25.6 
 26.4 
 27.4 
 25.9 
 24.9 
 24.3 
 19.7 
 
 33.5 
 34.3 
 34.9 
 36.3 
 39.1 
 42.6 
 46.4 
 48.1 
 44.1 
 41.0 
 39.1 
 32.8 
 
 22.1 
 22.1 
 15.2 
 25.7 
 23.7 
 25.3 
 26.5 
 26.8 
 18.6 
 18.1 
 23.9 
 20.4 
 
 17.7 
 17.8 
 17.1 
 17.8 
 18.8 
 20.5 
 21.6 
 21.9 
 20.1 
 19.5 
 19.0 
 16.0 
 
 13.9 
 14.0 
 14.3 
 14.9 
 15.6 
 17.1 
 18.5 
 19.0 
 17.6 
 16.9 
 16.2 
 13.7 
 
 25.1 
 25.7 
 26.0 
 27.0 
 28.8 
 31.8 
 32.8 
 33.7 
 31.2 
 29.9 
 29.0 
 24.1 
 
 
 
 
 July 
 
 August. . . 
 September 
 October . . 
 November 
 December 
 
 Total 
 
 16.5 
 
 24.3 
 
 23.5 
 
 39.2 
 
 23.7 
 
 18.9 
 
 15.9 
 
 28.9 
 
 TABLE G. AVERAGE PRICE PAID TO PRODUCERS BY Six CONDENSERIES 
 
 THE CHICAGO DAIRY DISTRICT* 
 Per 100 pounds of 3.5-percent milk 
 
 LOCATED 
 
 Month 
 
 1913 
 
 1914 
 
 1915 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 1922 
 
 10-yr. 
 aver. 
 
 January 
 
 1.79 
 
 1.88 
 
 31.84 
 
 31.80 
 
 32 10 
 
 33.24 
 
 33.76 
 
 33.60 
 
 32.11 
 
 31.57 
 
 32.37 
 
 
 70 
 
 77 
 
 1 76 
 
 1 71 
 
 2 09 
 
 3 10 
 
 3 47 
 
 3 35 
 
 2 09 
 
 1 45 
 
 2 25 
 
 March 
 
 61 
 
 67 
 
 67 
 
 1 62 
 
 2 00 
 
 2 91 
 
 3 02 
 
 2 86 
 
 2 06 
 
 1.45 
 
 2.09 
 
 April 
 
 .53 
 
 .47 
 
 .47 
 
 1.64 
 
 2 40 
 
 2 62 
 
 2 80 
 
 2.75 
 
 2.08 
 
 1.44 
 
 2.02 
 
 
 30 
 
 22 
 
 22 
 
 1 47 
 
 2 06 
 
 2 06 
 
 2 50 
 
 2 70 
 
 90 
 
 44 
 
 1 79 
 
 
 16 
 
 10 
 
 10 
 
 1 28 
 
 1 71 
 
 1 82 
 
 2 53 
 
 2 75 
 
 64 
 
 .44 
 
 1 65 
 
 July... 
 
 .38 
 
 36 
 
 32 
 
 1 54 
 
 2 17 
 
 2 30 
 
 3 00 
 
 3.20 
 
 .65 
 
 .67 
 
 1.% 
 
 August 
 
 .50 
 
 .50 
 
 49 
 
 1 69 
 
 2 33 
 
 2 75 
 
 3 52 
 
 3.49 
 
 .84 
 
 .79 
 
 2.19 
 
 
 56 
 
 51 
 
 si 
 
 1 72 
 
 2 39 
 
 2 92 
 
 3 55 
 
 3 44 
 
 78 
 
 81 
 
 2 22 
 
 October 
 November 
 
 .68 
 1.79 
 
 .76 
 .84 
 
 .68 
 1.78 
 
 1.94 
 2 08 
 
 3.41 
 3 24 
 
 3.32 
 3 68 
 
 3.63 
 3 60 
 
 2.66 
 2 28 
 
 .78 
 1.80 
 
 .89 
 2.06 
 
 2.38 
 2.42 
 
 
 1 88 
 
 86 
 
 1 80 
 
 2 13 
 
 3 24 
 
 3 77 
 
 3 65 
 
 2 19 
 
 1 76 
 
 2 31 
 
 2 46 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Average 
 
 31.57 
 
 31.58 
 
 31.55 
 
 SI. 72 
 
 32.43 
 
 32.87 
 
 33.25 
 
 32.94 
 
 31.87 
 
 31.69 
 
 32.15 
 
 a Elgin and Belvidere, Illinois; Burlington, Monroe, New Glarus, and Sharon, Wis- 
 consin. 
 
 TABLE H. AVERAGE PRICE PAID TO PRODUCERS BY NINE CONDENSERIES LOCATED IN 
 
 THE TERRITORY CONTIGUOUS TO THE CHICAGO DAIRY DISTRICT" 
 
 Per 100 pounds of 3.5-percent milk 
 
 Month 
 
 1913 
 
 1914 
 
 1915 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 1921 
 
 1922 
 
 10-yr. 
 aver. 
 
 January 
 
 31.74 
 1.72 
 1.69 
 1.58 
 .38 
 .26 
 .43 
 .52 
 .56 
 .64 
 .72 
 1.80 
 
 31.82 
 1.76 
 1.68 
 1.50 
 .29 
 .22 
 .39 
 .48 
 .52 
 .71 
 .73 
 .73 
 
 31.72 
 1.66 
 1.59 
 1.41 
 1.25 
 1.17 
 1.29 
 1.40 
 1.42 
 1.54 
 1.61 
 1.68 
 
 31.73 
 .70 
 .64 
 .63 
 .47 
 .35 
 .49 
 .62 
 .67 
 1.86 
 2.07 
 2.28 
 
 32.21 
 2.13 
 2.03 
 2.33 
 2.17 
 2.00 
 2.28 
 2.36 
 2.43 
 3.07 
 3.10 
 3.20 
 
 33.22 
 3.15 
 2.91 
 2.57 
 2.13 
 1.91 
 2.24 
 2.66 
 2.92 
 3.36 
 3.69 
 3.79 
 
 33.78 
 3.34 
 2.94 
 2.84 
 2.70 
 2.71 
 3.03 
 3.49 
 3.57 
 3.60 
 3.59 
 3.64 
 
 33.62 
 3.29 
 2.90 
 2.81 
 2.78 
 2.80 
 3.16 
 3.24 
 3.22 
 2.34 
 2.20 
 1.70 
 
 31.84 
 1.88 
 2.03 
 2.04 
 .73 
 .36 
 .38 
 .71 
 .71 
 .72 
 .77 
 1.70 
 
 31.60 
 1.46 
 1.45 
 1.46 
 
 1.45 
 1.45 
 1.60 
 1.62 
 1.72 
 1.87 
 2.08 
 2.33 
 
 32.33 
 2.21 
 2.09 
 2.02 
 1.84 
 1.72 
 1.93 
 2.11 
 2.17 
 2.27 
 2.36 
 2.38 
 
 February 
 
 March 
 
 April 
 
 
 
 July... 
 
 August 
 
 
 October 
 
 November 
 December 
 
 
 Average 
 
 31.59 
 
 31.57 
 
 31.48 
 
 31.71 
 
 32.44 
 
 32.88 
 
 33.27 
 
 32.84 
 
 31.74 
 
 31.67 
 
 32.12 
 
 *Dixon, Orangeville, Sterling, and Union, Illinois; Berlin, Chilton, Johnson Creek, 
 Richland Center, and Watertown, Wisconsin. 
 
19251 
 
 MARKETING MILK IN CHICAGO DAIRY DISTRICT 
 
 539 
 
 TABLE I. AVERAGE PRICE PAID TO PRODUCERS BY THREE FOREIGN-TYPE CHEESE 
 
 FACTORIES IN THE CHICAGO TERRITORY" 
 
 Per 100 pounds of 3.5-percent milk 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 Aver." 
 
 1910... 
 
 (b) 
 
 
 
 $1.06 
 
 31.18 
 
 31.32 
 
 31.29 
 
 31.18 
 
 31.06 
 
 31.13 
 
 31.18 
 
 31.03 
 
 31.16 
 
 1911... 
 
 
 
 
 .68 
 
 .66 
 
 .92 
 
 .91 
 
 .89 
 
 1.07 
 
 1.18 
 
 .38 
 
 
 .96 
 
 1912 
 
 
 
 
 1.20 
 
 1.28 
 
 1.30 
 
 1.05 
 
 .26 
 
 1.45 
 
 1.64 
 
 53 
 
 1.70 
 
 1.38 
 
 1913 
 
 
 
 
 1.23 
 
 1.32 
 
 1.17 
 
 1.16 
 
 .20 
 
 1.20 
 
 1.34 
 
 .51 
 
 1.65 
 
 1.31 
 
 1914... 
 
 
 
 
 .82 
 
 .00 
 
 1.00 
 
 1.34 
 
 .00 
 
 1.07 
 
 1.23 
 
 .30 
 
 1.30 
 
 1.12 
 
 1915 
 
 
 
 
 1 03 
 
 19 
 
 1.02 
 
 .95 
 
 .11 
 
 1 29 
 
 1 54 
 
 .61 
 
 1.52 
 
 1.25 
 
 1916 
 
 
 
 
 1.25 
 
 .30 
 
 1.34 
 
 1.42 
 
 .92 
 
 2.20 
 
 2.09 
 
 2.23 
 
 1.98 
 
 1.75 
 
 1917.... 
 
 
 
 
 1.81 
 
 .74 
 
 1.77 
 
 1.83 
 
 2.21 
 
 2.59 
 
 2.49 
 
 2.67 
 
 2.65 
 
 2.20 
 
 1918. 
 1919. 
 1920 
 
 32.36 
 2.26 
 2 50 
 
 552.35 
 1.74 
 2 22 
 
 31.65 
 2.01 
 2 18 
 
 1.69 
 2.31 
 2 16 
 
 .97 
 2.57 
 2 49 
 
 2.21 
 2.74 
 2 28 
 
 2.65 
 2.92 
 2 01 
 
 2.72 
 2.65 
 2 21 
 
 3.21 
 2.96 
 2 39 
 
 3.03 
 3.08 
 1 96 
 
 3.20 
 3.19 
 1 99 
 
 2.90 
 2.83 
 1 70 
 
 2.50 
 2.61 
 2.17 
 
 1921. 
 1922. 
 1923. 
 
 1.44 
 1.26 
 
 1.82 
 
 1.54 
 1.16 
 1.74 
 
 1.70 
 1.04 
 1.53 
 
 1.13 
 1.17 
 1.44 
 
 1.64 
 1.46 
 1.98 
 
 1.67 
 1.35 
 1.68 
 
 1.33 
 1.48 
 
 1.42 
 1.62 
 
 1.63 
 2.09 
 
 1.98 
 1.97 
 
 1.57 
 2.10 
 
 1.75 
 2.21 
 
 1.57 
 1.58 
 
 "Located in Dane, Green, and LaFayette counties, Wisconsin. 
 
 ""Foreign cheese is ordinarily not manufactured during the winter months. 
 
 "Average prices are for the number of months given in the table. 
 
 TABLE J. AVERAGE PRICE PAID TO PRODUCERS BY THREE AMERICAN CHEESE FACTORIES 
 
 IN THE CHICAGO TERRITORY* 
 Per 100 pounds of 3.5-percent milk 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 Aver. 
 
 1916. 
 1917. 
 
 31.63 
 2 12 
 
 31.56 
 2 08 
 
 31.37 
 2 01 
 
 31.26 
 1 92 
 
 31.21 
 1 93 
 
 31.20 
 1 95 
 
 31.16 
 1 81 
 
 31.35 
 1 92 
 
 31.72 
 2 26 
 
 31.96 
 2 26 
 
 32.55 
 2 31 
 
 32.24 
 2 41 
 
 31.60 
 2.08 
 
 1918. 
 
 2.39 
 
 2 28 
 
 1 81 
 
 1.62 
 
 1.66 
 
 1.78 
 
 1.88 
 
 2 06 
 
 2.73 
 
 3.22 
 
 3.52 
 
 3.44 
 
 2.37 
 
 1919 
 
 3 02 
 
 2 12 
 
 2 51 
 
 2 35 
 
 2 54 
 
 2 49 
 
 2 57 
 
 2 51 
 
 2 50 
 
 2 89 
 
 2 89 
 
 3 07 
 
 2 62 
 
 1920. 
 1921. 
 1922. 
 1923 
 
 2.86 
 2.17 
 1.63 
 2.25 
 
 2.42 
 2.17 
 1.56 
 1.91 
 
 2.41 
 1.74 
 1.40 
 1.71 
 
 2.28 
 1.10 
 1.08 
 1.53 
 
 2.18 
 .93 
 1.29 
 1.74 
 
 1.86 
 .94 
 1.36 
 1.68 
 
 1.84 
 1.40 
 1.36 
 
 1.99 
 1.44 
 1.45 
 
 2.25 
 1.52 
 1.79 
 
 2.12 
 1.76 
 2.25 
 
 2.37 
 1.68 
 2.38 
 
 2.03 
 1.77 
 2.42 
 
 2.22 
 1.55 
 1.66 
 
 "Located in Iowa and Sheboygan counties, Wisconsin. 
 
 TABLE K. VALUE OF 100 POUNDS OF 3.5-PERCENT MILK ON A BUTTERFAT AND SKIM 
 
 MILK BASIS" 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 Aver. 
 
 1907. 
 
 31.21 
 
 31.27 
 
 31.23 
 
 31.18 
 
 3 .96 
 
 3 .94 
 
 3 .99 
 
 3 .98 
 
 31.07 
 
 31.11 
 
 3 .98 
 
 31.06 
 
 31.08 
 
 1908. 
 
 1.22 
 
 .36 
 
 1.19 
 
 .16 
 
 .98 
 
 .96 
 
 .93 
 
 .93 
 
 .97 
 
 1.09 
 
 .17 
 
 1.22 
 
 1.10 
 
 1909. 
 
 1.23 
 
 .22 
 
 1.17 
 
 .10 
 
 1.01 
 
 1.02 
 
 1.05 
 
 1.10 
 
 1.22 
 
 1.24 
 
 .27 
 
 1.34 
 
 1.16 
 
 1910. 
 
 1.39 
 
 .19 
 
 1.26 
 
 .24 
 
 1.14 
 
 1.12 
 
 1.11 
 
 .21 
 
 1.24 
 
 .22 
 
 .28 
 
 1.25 
 
 1.22 
 
 1911. 
 
 1.19 
 
 .11 
 
 1.10 
 
 .96 
 
 .96 
 
 .97 
 
 1.01 
 
 .12 
 
 1.13 
 
 .23 
 
 .34 
 
 1.45 
 
 1.13 
 
 1912. 
 
 1.49 
 
 .29 
 
 1.24 
 
 .30 
 
 1.24 
 
 1.13 
 
 1.13 
 
 .12 
 
 1.20 
 
 .27 
 
 .37 
 
 1.44 
 
 1.27 
 
 1913. 
 
 1.37 
 
 .41 
 
 1.42 
 
 .35 
 
 1.18 
 
 1.16 
 
 1.14 
 
 .18 
 
 1.31 
 
 .30 
 
 .33 
 
 1.39 
 
 1.30 
 
 1914. 
 
 1.36 
 
 .19 
 
 1.17 
 
 .11 
 
 1.11 
 
 1.13 
 
 1.14 
 
 .25 
 
 1.27 
 
 .28 
 
 .37 
 
 1.37 
 
 1.23 
 
 1915. 
 
 1.34 
 
 .29 
 
 1.18 
 
 .24 
 
 1.18 
 
 1.18 
 
 1.12 
 
 .08 
 
 1.10 
 
 .19 
 
 1.26 
 
 1.41 
 
 1.21 
 
 1916. 
 
 1.36 
 
 .38 
 
 1.50 
 
 .53 
 
 1.32 
 
 1.29 
 
 1.25 
 
 .32 
 
 i:43 
 
 .51 
 
 1.6? 
 
 1.69 
 
 1.43 
 
 1917. 
 
 1.67 
 
 .75 
 
 1.78 
 
 .87 
 
 1.74 
 
 1.76 
 
 1.80 
 
 .90 
 
 2.08 
 
 2.11 
 
 2.11 
 
 2.26 
 
 1.90 
 
 1918. 
 
 2.30 
 
 .31 
 
 2.09 
 
 .99 
 
 1.99 
 
 2.00 
 
 2.07 
 
 .13 
 
 2.49 
 
 2.64 
 
 2.78 
 
 3.01 
 
 2.32 
 
 1919. 
 
 2.77 
 
 .19 
 
 2.60 
 
 .75 
 
 2.61 
 
 2.37 
 
 2.35 
 
 .45 
 
 2.60 
 
 2.92 
 
 3.10 
 
 3.15 
 
 2.66 
 
 1920. 
 
 2.77 
 
 .81 
 
 3.01 
 
 .98 
 
 2.71 
 
 2.57 
 
 2.56 
 
 .53 
 
 2.66 
 
 2.53 
 
 2.51 
 
 2.09 
 
 2.64 
 
 1921. 
 
 2.07 
 
 .90 
 
 1.95 
 
 .85 
 
 1.26 
 
 1.25 
 
 1.58 
 
 .63 
 
 1.64 
 
 1.82 
 
 1.78 
 
 1.73 
 
 1.71 
 
 1922. 
 
 1.44 
 
 .53 
 
 1.65 
 
 .56 
 
 1.47 
 
 1.51 
 
 1.54 
 
 .47 
 
 1.60 
 
 1.78 
 
 2.05 
 
 2.24 
 
 1.65 
 
 1923. 
 
 2.13 
 
 .08 
 
 2.07 
 
 1.98 
 
 1.74 
 
 1.59 
 
 1.54 
 
 .76 
 
 1.88 
 
 1.98 
 
 2.15 
 
 2.26 
 
 1.93 
 
 1924. 
 
 2.19 
 
 2.06 
 
 1.93 
 
 1.59 
 
 1.49 
 
 1.56 
 
 
 
 
 
 
 
 
 "Butterfat prices are for sour cream delivered to a centralizer creamery in Chicago 
 and skim milk is based on the wholesale price of tankage (10 pounds of skim milk = 1 
 pound of tankage). 
 
540 
 
 BULLETIN No. 269 
 
 [Junf, 
 
 TABLE L. INDEX NUMBERS OF PRICES PAID FOR BUTTERFAT BY A CHICAGO CENTRALIZER 
 
 CREAMERY* 
 Five-year average of each month (1909-1913 = 100) 
 
 Year 
 
 Jan. 
 
 Feb. 
 
 Mch. 
 
 Apr. 
 
 May 
 
 June 
 
 July 
 
 Aug. 
 
 Sept. 
 
 Oct. 
 
 Nov. 
 
 Dec. 
 
 1907... 
 
 91 
 
 104 
 
 101 
 
 101 
 
 86 
 
 87 
 
 91 
 
 84 
 
 88 
 
 89 
 
 73 
 
 76 
 
 1908 
 
 91 
 
 112 
 
 97 
 
 98 
 
 88 
 
 89 
 
 85 
 
 80 
 
 78 
 
 87 
 
 89 
 
 89 
 
 1909 
 
 93 
 
 99 
 
 96 
 
 93 
 
 92 
 
 95 
 
 98 
 
 97 
 
 102 
 
 101 
 
 98 
 
 99 
 
 1910 
 
 107 
 
 96 
 
 103 
 
 106 
 
 104 
 
 106 
 
 104 
 
 108 
 
 103 
 
 97 
 
 97 
 
 90 
 
 1911 
 
 86 
 
 87 
 
 86 
 
 77 
 
 83 
 
 87 
 
 91 
 
 97 
 
 91 
 
 97 
 
 101 
 
 106 
 
 1912 
 
 112 
 
 104 
 
 99 
 
 109 
 
 113 
 
 105 
 
 103 
 
 97 
 
 97 
 
 101 
 
 104 
 
 105 
 
 1013 
 
 102 
 
 114 
 
 116 
 
 115 
 
 107 
 
 108 
 
 104 
 
 102 
 
 107 
 
 104 
 
 100 
 
 101 
 
 1914... 
 
 101 
 
 94 
 
 93 
 
 91 
 
 IOC 
 
 104 
 
 105 
 
 108 
 
 102 
 
 100 
 
 102 
 
 98 
 
 1915 
 
 97 
 
 101 
 
 94 
 
 103 
 
 106 
 
 110 
 
 102 
 
 92 
 
 88 
 
 94 
 
 94 
 
 102 
 
 1916 
 
 101 
 
 111 
 
 124 
 
 132 
 
 122 
 
 122 
 
 116 
 
 115 
 
 117 
 
 121 
 
 123 
 
 121 
 
 1917 
 
 123 
 
 139 
 
 140 
 
 154 
 
 151 
 
 159 
 
 159 
 
 157 
 
 162 
 
 160 
 
 151 
 
 155 
 
 1918 
 
 161 
 
 176 
 
 157 
 
 153 
 
 168 
 
 174 
 
 180 
 
 175 
 
 195 
 
 202 
 
 204 
 
 213 
 
 1919 
 
 199 
 
 162 
 
 201 
 
 225 
 
 231 
 
 211 
 
 207 
 
 204 
 
 205 
 
 229 
 
 231 
 
 225 
 
 1920 
 
 198 
 
 216 
 
 235 
 
 242 
 
 237 
 
 227 
 
 224 
 
 208 
 
 208 
 
 193 
 
 186 
 
 148 
 
 1921 
 
 152 
 
 155 
 
 160 
 
 158 
 
 111 
 
 116 
 
 150 
 
 146 
 
 136 
 
 149 
 
 137 
 
 126 
 
 1922 
 
 102 
 
 118 
 
 123 
 
 126 
 
 131 
 
 140 
 
 137 
 
 121 
 
 125 
 
 138 
 
 154 
 
 163 
 
 1923 
 
 157 
 
 163 
 
 166 
 
 166 
 
 158 
 
 149 
 
 144 
 
 145 
 
 154 
 
 158 
 
 165 
 
 168 
 
 1924 
 
 169 
 
 171 
 
 160 
 
 135 
 
 140 
 
 151 
 
 
 
 
 
 
 
 'Sour cream delivered at the plant. 
 
UNIVERSITY OF ILLINOIS-URBANA