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Changes in factors affecting the economic performance of the butter industry are discussed. Emphasis is placed on trends in butter production, plant numbers, production per plant, regional shifts in production, per capita consumption, and sources of butterfat. Comparison is made of costs of butter manufacture using batch and continuous-churn systems. Breakdowns are made of costs by function and cost element. Farm-to-retail price spreads are analyzed along with factors which determine farm value and retail price. Results of a study of costs and margins of butter sold in nine selected cities are discussed. Also, a brief description is given of the marketing channels for butter.


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