Excerpt from the report Preface: This report describes the development of processing costs for 11 plants; 1 receiving, cooling, and shipping milk, and 10 manufacturing various dairy products or combinations of products. The procedure used was the synthetic method of cost analysis, utilizing the various inputs (in efficient combinations) with current prices to arrive at typical costs for plants of specified volumes. The report describes in detail the procedure by which costs were estimated in three kinds of plants: (1) A receiving station, (2) a Cheddar cheese plant, and (3) a plant producing cream and nonfat dry milk. The report also gives a description and cost analysis of the modifications required to process other combinations of products. Finally, unit costs are presented in terms of processing 100 pounds of milk into the respective products or combinations of products.