Chapter 3

In this chapter, it was revealed that the milk was actually mixed into the pigs' mash. So even though Napoleon did not take it all for himself, he did reserve it only for the pigs, and not for any of the other animals that might want it.
The way the farm typically runs is described in this chapter. We learn that Boxer has been doing incredible amounts of work, and that even though most of the animals do their share, some of them, such as the Mollie, the cat, and the rats and mice are useless and do not participate. We also learn that the harvest was finished two days earlier than when Jones and his men were in control of the farm, and that this time it was a greater harvest because the entirety of the food was available to the animals, the ones who produced it. The general response to this is described in the quote, "The animals were as happy as they had never conceived it possible to be. Every mouthful of food was an acute positive pleasure, now that it was truly their own food, produced by themselves and for themselves, not doled out by a grudging master. With the worthless parasitical human beings gone, there was more for everyone to eat."
The big thing in this chapter is how the pigs are seemingly growing more superior to the other animals. The pigs do no actual work, but instead run and organize the farm, delegating tasks to the others, attempting to teach other animals how to read and write, and trying to educate the young. They have also set aside the harness-room for themselves to become further educated in different things. It seems to be understood that because they are the most clever, the pigs should be the ones that are in charge of and responsible for organizing the others.
But it can be seen that they have various ways of manipulating the other animals. They use their intelligence as an excuse for control. They convinced everyone that the apples that are grown on the farm should be reserved solely for the pigs, as is the same for the milk, saying that it is necessary for their health, and without them the farm could not run smoothly, and Jones would return. Even though the animals assumed that the apples would be shared equally amongst everyone, they have no choice but to surrender the apples to the pigs for fear of Jones' return.
Also, the rivalry between Snowball and Napoleon seems to have begun, their constant debating over issues and never being able to agree could serve as a potential catalyst for conflict further down the line.