Wisconsin Cheese Makers' Association / Proceedings of the Wisconsin Cheese Makers' Association forty-third annual convention November 14, 15, 1934 assembled in the Eagles Auditorium Sheboygan, Wisconsin
Damrow, E. C.
Cost of making cheese in 1934 and 1935, pp. 20-24 PDF (1.2 MB)
FORTY-THIRD ANNUAL CONVENTION MIL WINTER: Mr. Chairman, do I understand this gentleman right, a factory running six thousand pounds of milk daily in the flush cost $6000? MB. DAmzow: We have several we made the layout for, and I have the cost, and these are factories that are built maybe four or five years ago, and I think it costs just as much today to build a factory as it did five or six years ago. MR. WINTER: I am speaking with living rooms included, of course. MR. DAUROW: That is what my basis is. If you have less invest- ment, figure your depreciation on your actual investment, so you can figure on your own depreciation at your own cost. SzncRE!ARy SAmmIs: Mr. Chairman, I would like to ask Mr. Alberta one little question. After you figured the expense at your factory, were you surprised? MR. ALBGATs: Yes, I was surprised, and I can't understand how some cheese makers are making cheese for 1% cents. I was surprised how they can exist. SAEIrARY SAmMIs: Mr. President, the whole purpose of having this address on the program here is to try to get it so that next year more than one man will be looking up his costs. The cost is not the same in any two factories. Some of them cost $6000, some of them may have cost only half of that or might cost more. No one can as- sume what the costs are in his factory from what he hears about some other place, any more than you can assume how much money you have in the bank because you hear some other fellow has so much money in the bank. We hope very sincerely that next year there will be some more people beside Mr. Alberts that figure their own cost. MR. AlwrsTS: Mr. Chairman, it might be a good idea to find out how they are doing that at 1% cents and then we can do the same. PRESIDENT WHITING: Perhaps there is someone here that wants to tell how they do it. MR. FELTON: Mr. Chairman, I was going to ask Mr. Damrow this question, what the real object would be in a cheese maker trying to figure out cost of operation, that is, what there would be gained by figuring it up? Mr. Sammis answered part of that question but I can't see what there would be gained by a cheese maker figuring out the cost of operation. I would like to have him explain what is gained in dollars and cents by doing that. SECRvrARY SAMMIS: Mr. Chairman, in the absence of those mem- bers who can make cheese for a cent and a half or less, if you should ask them what it cost them to make cheese, they couldn't tell you. That is the point, they are the people that never figure anything. In answer to Mr. Felton's question, you won't have a cent more money in your pocket after you have done the work of figuring-not at all. No one will pay you anything because you figure the expense on your own factory, but you will know how much of the money in the bank is profit, you will know hew much you gained or you will know how near you came to just breaking even or you will know if you have really taken in less money than it cost you to make cheese, and we think that is worth knowing. Ma. FELTON: Here is what I was trying to arrive at, how are you going to get more for making, probably because you can show the farmers how much it cost you to operate. How are you going to get more? SzcurARY SAImis: That is the problem of every cheese maker, but you certainly won't get anywhere if you don't know how much it cost. Ma. FELTON: I was trying to find out if somebody has some plan or some way that we could put that plan into operation that Mr. Dam- row advocates. 23
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