472 IOWA DEPARTMENT OF AGRICULTURE 



We know that many farmers are following improved methods of culti- 

 vation in order that they may receive larger crops; they are feeding 

 their cows more and better feeds and housing them more comfortably 

 so that they will produce a greater quantity of milk. They know that by 

 feeding their own crops to the dairy cow, they can retail their grain and 

 hay, in the form of butter-fat, to much better advantage than if they 

 were sold in the raw stage. What are these farmers doing when they 

 follow such methods? In short, they are co-operating with the soil, and 

 with the cow; perhaps not consciously, but, nevertheless, co-operating. 

 They are co-operating in this way because they are gaining in efficiency 

 and because they are securing greater returns. 



MARKETING OF BUTTER VITALLY IMPORTANT. 



It is with the idea of receiving greater returns and more satisfactory 

 results that the majority of co-operative creameries are organized. Now, 

 when any new organization attempts to put its butter upon the market it 

 finds itself in the same position as any individual would find if he 

 would attempt to market his own product direct. In other words, the 

 creamery meets the competition of all the other butter on the market. 

 And here let me say that I firmly believe the marketing of butter is one 

 of the most important, yet one of the most neglected, phases of the 

 creamery business. I further believe that next to the lack of sufficient 

 cows, more creameries have failed on account of their poor markets than 

 any other reason. If a co-operative creamery proves successful, it should 

 be able to pay its patrons at least several cents premium per pound of 

 butter-fat; and that's what every successful creamery should strive to do, 

 pay a premium for first class goods. A creamery cannot succeed, in the 

 broad sense, when its patrons make use of it merely in a mechanical 

 way in disposing of their butter-fat. No creamery can hope to be success- 

 ful that does not have the thorough co-operation of its patrons in pro- 

 ducing a good quality of cream to make good butter. It requires good 

 butter to find good markets. It requires good markets to obtain good 

 prices. It requires good prices to encourage good dairying. 



Candy machines, weighing machines and telephones are supposed to 

 render a certain service according to the amount of money deposited in 

 them. If the machine is out of order, the individual has no recourse; 

 and so the mechanical dairyman, who delivers his butter-fat to a simple 

 mechanical factory, has no recourse when trouble arises. 



So now, as I see it, the big thing is to get down to the individual. 

 Meet trouble before it starts. Before a man can become a strong co- 

 operator, he first must be a strong individual. The trouble with most 

 co-operative creameries is that they begin at the wrong end. They spend 

 a large sum of money in organizing and building a factory before they 

 really know what they are going to do. If the desired number of cows 

 are pledged, they are usually encouraged to gb ahead. The theory is that 

 the profits are very large, and that they will be pro rated accordingly. 

 Little thought is given to the selling end of the business, or to the out- 

 side competition. In practice, this system has worked out badly in a 

 large number of cases. Then, after all, who is to blame for the many 

 failures that have been and still are being made? I answ^er, the state. 



