Excerpts from the report: The work on which this report is based is part of a broad program of research aimed at improving the efficiency of the marketing of farm products. The purpose of the work was to develop estimates of margins available to firms manufacturing the major types of products which utilize Class III milk. The study covered the years 1948-57, and estimates of margins were prepared for 11 products or combinations of products. Supporting data on prices, costs of raw materials, and costs of processing are presented and discussed. The specific manufactured products and combinations of products that were selected for study include butter, cream, and ice cream mix as fat-containing products, and nonfat dry milk, condensed skim milk, and creamed cottage cheese as products using skim milk. Cheddar cheese was included as a product using whole milk. In addition, an analysis was made of milk diverted from manufacturing plants to fluid milk usage.