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Greater investments in farm storage and refrigeration equipment are necessary for farmer participation in a bulk milk procurement program. Economies in operational costs are effected in the collection and receiving point procedures which more than offset the relatively greater costs of farm bulk storage and refrigeration. Marked economies may be secured by increasing the relative utilization of the capacity of the storage facilities. Receiving room costs per hundredweight of milk under a 100 percent bulk procurement operation are significantly lower than a 100 percent can system. Cost efficiencies which may be effected under a bulk milk handling program are closely associated with (a) average daily volume per producer, (b) sound route planning (proper route length and route volume), (c) frequency of collection, and (d) securing a proper technical balance in the equipment necessary to service the route.