Economies of scale for evaporated milk plants in California

Boles, J

Economies of scale for evaporated milk plants in California

Author

James N. Boles

Author Affiliations

James N. Boles was Assistant Professor of Agricultural Economics and Assistant Economist in the Experiment Station and on the Giannini Foundation, Berkeley.

Publication Information

Hilgardia 27(21):621-722. DOI:10.3733/hilg.v27n21p621. October 1958.

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Abstract

The primary objective of this report is to estimate the relationship between unit cost of processing evaporated milk and scale or capacity of plant. A secondary objective is to estimate the relationship between unit cost of processing evaporated milk and output rate for each of several specific plants.

The study is limited in scope. Evaporated milk plants considered here receive whole milk from regular patrons, produce a single product, and possess a common technology and operating environment typical of California plants. Only in-plant costs are analyzed. Costs incurred in the purchase and assembly of the raw product are not included, nor are the costs of distribution and sale of the final product.

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