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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
(1935)

Damrow, E. C.
Cost of making cheese in 1934 and 1935,   pp. 20-24 PDF (1.2 MB)


Page 22


22    WISCONSIN CHEESE MAKERS' ASSOCIATION
Another feature that will be quite a big expense item to cheese fac-
tories-and quite a number have gone into it already-will be refrig-
eration and can washing at the factory, which not only adds to the
cost of equipment but also the cost of operation. But I have never
talked with an operator who now has refrigeration equipment or a
can washer who would want to be without it again.
We have two speakers on the program this afternoon who have re-
frigeration for their factories and have arranged special curing
rooms for the same. These certainly are very timely subjects for dis-
cussion at this time and will be very instructive, especially for those
who have been intending to put in new coolers and curing rooms, as
well as refrigeration.
DISCUSSION
MIL WINnMS: I would like to ask Mr. Damrow, what is your
rough estimate of cost of making cheese in 1934?
Ma. DAMROW: In a factory running three hundred thousand
pounds it is around $2.27 I think. My object in figuring three per cent
depreciation on a building to ten per cent depreciation on equipment
is more for laying out a program which you can follow, and tabulate
your own figures. I wonder if Mr. Alberta is ready to tell us what his
figures amounted to last year.
Ma. ALEars: No, sir, I can't. I didn't look it over since last Janu-
ary. I forget the exact figures but mine were a little lower than yours
were.
MR. DAMROw: I am figuring on $100 a month salary. It is easier
for you to follow, if you work on a pound basis. I figure on 80 cents,
on the pound basis. It is an easy matter and you should follow it so
you know where you are at. At least, figure up your costs for this
last year, tabulate your figures and you will have some idea of where
you really are.
A MEMBi: Mr. Damrow has figured the six thousand pound fac-
tory built cheaper than five thousand dollars.
Ma DAMROW: Yes, I am figuring a factory built recently. I am
taking a co-operative factory where it has to have a residence for the
cheese maker. I don't think you can get much below that. Do you
know of any co-operative factory in your neighborhood that has a res-
idence provided for the cheese maker that is less than that? Yes, if
you have an individual factory only and the man rents elsewhere, that
factory doesn't cost that much. On most of the co-operative factories
that are built, I am taking that as a basis, not that I am working for
the co-operatives. My object in making this report is to help makers
when they make up their income report. All the co-operatives have to
make an income report, and they should have something to follow by
which to figure their depreciation. Someone told me he has a factory
that cost him actually less than $1200, but it wasn't a factory, it was
a barn.
A MEMBiER: Mr. Damrow, how much depreciation are we allowed?
MR. DAmRow: You have an allowance of three per cent on your
building. On your equipment it is accepted by the state at ten per
cent. That is taken care of that way all through on this type of in-
dustry, and when you make up your report and you don't figure your
depreciation on it, you are just that much out if you have to pay
taxes.


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