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Economies of scale in the milk cooling process

This article aims to estimate the costs involved in the milk cooling process after the Normative Instruction 51 was issued and it also aims to verify the sources of economies scale. Using the concepts of the economical engineering, the uniform net costs of the investment in the milk cooling process were calculated. They were added to the operational cost and it resulted in the total uniform net cost per unit. It was concluded that there is a strong tendency to economies scale in the milk cooling process as a consequence of the growing returns in the investment and operational costs as the milk cooling tank capacity increases.

Dairy cattle; cooling process; production cost


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