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Agriculture is a period of specialization and commercialization. This is also happening to milk production. Until now most of the production has been carried out on family farms. Many farmers realize that it may be difficult for them to compete in the future with larger scale dairy farms. Furthermore, many farmers who take care of the cows themselves want to be released from this work. These and other factors have led to the idea of dairy cow pools. This is an arrangement where several owners of dairy cows enter into a contract with the management of a central housing, feeding, and milking unit designed to handle large numbers of cows. Development of cow pools may have great impact on the economy of the individual farm. It is the purpose of this research paper to throw some light on this question, and to determine under which circumstances membership in a milk pool will be to the benefit of the individual farmer.


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