FARMERS' INSTITUTES. 17 



MERGING OF CHEESE SALES. 



BY NORMAN B. HORTON, FRUIT RIDGE. 



(Abstract.) 



During recent years rapid strides have been made in the cheese in- 

 dustry in Michigan. The first cheese factory was erected in 1853, by 

 Samuel Horton. There are now 150 factories in the State, which in 

 1903 used nearly one hundred and fifty million pounds of milk from 

 which about fifteen million pounds of cheese were manufactured. Of 

 these factories, sixty-two have been built since January 1st, 1900. The 

 product of these factories is sold by the 127 owners or managers, each 

 of whom is anxious to obtain all his cheese is worth but is willing to ac- 

 cept, in many cases, and if necessary, a large cut in the price rather than 

 have the cheese left on his hands. Thus when the price fixed by the Utica 

 and Little Falls Boards of Trade was 11 cents per pound, quotations 

 were sent out from some Michigan factories placing the price at from 

 Sy^ to 8% cents. Such cutting and slashing is an injustice to the patrons 

 of the cheese factories throughout the State, as the wholesalers not only 

 gobble up the cheese but often use the quotation as a leverage in pro- 

 curing other stock. 



The cheese industry in Michigan has out-grown old methods. In 

 New York they ran against the same snag but overcame the difficulty 

 by establishing dairy boards of trade which meet every Monday for the 

 purpose of agreeing upon a price for that week. Each seller 'hands in 

 the number of cheese he has to offer and the secretary by summing up 

 gets the total receipts. The price fixed is governed by the supply and 

 demand. In Michigan the same course should be adopted. For example, 

 four dairy boards of trade should meet, one in each principal cheese 

 making district as at Adrian, Saginaw, Pontiac and Allegan. The fac- 

 tory men and buyers could get together at these points, and the cheese 

 would sell on their merits and competition would encourage the making 

 of a better grade of cheese. Competitive salesmen would be taken off 

 the road and be brought together on an uncompetitive basis, so far as 

 unnecessary slaughter in prices are concerned. It would reduce to a 

 large degree the cost of selling the cheese ajid the board would be in 

 condition to receive the latest dairy market reports from all over the 

 world. The benefit derived from the dairy board of trade by the farmers 

 through the increased price received by the manufacturers would be 

 enormous. 



Another plan for the merging of cheese sales is to have a general 

 clearing house with several stations to which all cheese would be sent 

 as soon as cured. This could be handled either by a stock company or 

 by a co-operative concern composed wholly of factory owners. Under 

 this system, the cheese could be held in times of over-production and 

 prices could be retained on a firmer basis. The expense of selling would 

 be reduced, general market conditions equalized and all worry would 

 be taken off the mind of the factory owner, so far as disposing of his 

 cheese is concerned. 



