E17-27 Sell of Process Further

Rose Hill, a soybean farm in northern Minnesota, has a herd of 25 dairy cows. The cows produce ap-proximately 1,400 gallons of milk per week. The farm currently sells all its milk to a nearby processor for $1.25 per gallon, a significant drop from the $2.00 per gallon they were able to charge five years ago. It costs $1.60 per gallon to produce the milk.

The owners of Rose Hill are deciding whether to sell the dairy cows or expand into the artisan cheese market. Both owners have prior cheese-making experience and they already have all the needed equipment.

It takes .8 gallons of milk to make a pound of cheese. Costs to produce a pound of cheese are expected to total $7 per pound. Artisan cheeses are currently selling for $10 per pound at farmers markets and upscale groceries.

d. What other factors should the owners of Rose Hill consider when deciding whether to sell the dairy cows or expand into cheese-making?

(Note: Please, answer the question "d". I already got the other answers)