296 IOWA DEPARTMENT OP AGRICULTURE. 



With these facts before them the farmers of Iowa should consider 

 well whether they want to control the situation by owning their own 

 creameries, or allow the cream to go to plants which are entirely beyond 

 their control and from which returns may not be equal to the returns 

 made by the smaller creameries. 



Another fact gathered from the reports received from the creanjeries 

 is worthy of attention in this connection. There has been each month 

 compiled a comparative statement of those creameries making less than 

 18.5 per cent overrun and those making more. There was a remarkable 

 uniformity in the variations in prices that these creameries were able 

 to pay to the farmers. For the nine months of this year the difference 

 in the returns to the farmers between those getting less than 18.5 . per 

 cent and those getting more than 18.5 per cent overrun varied more than 

 1 to 2c per pound, and averaged in most months about l%c more per 

 pound of butter fat received by farmers patronizing creameries in which 

 the overrun was more than 18.5 per cent. 



Table VII. 



Returns to farmers from different overrun on 23c New York market, 

 Ic premium: 



Creamery receiving 125,000 lbs. butter fat getting 13 per cent overrun, 

 pays 22.18c. 



Creameries receiving 125,000 lbs. butter fat getting 18.5 per cent over- 

 run, pays .23.36c. 



Creameries receiving 125,000 lbs. butter fat getting 23 per cent overrun, 

 pays 24.34c. 



Creameries receiving 62,500 lbs. butter fat getting 13 per cent overrun, 

 pays 21.14c. 



Creameries receiving 62,500 lbs. butter fat getting 18.5 per cent over- 

 run, pays 22.30c. 



Creameries receiving 62,500 lbs. butter fat getting 23 per cent overrun, 

 pays 23.27c. 



A large centralizer getting not less than 23 per cent overrun pays 

 19.60c. 



This centralizer pays 1.51c less than small creamery with 13 per cent 

 overrun and pays 4.74c less than average creamery getting 23 per cent 

 overrun. 



The farmer pays the difference. 



In order to give these figures some meaning, we will again take for 

 consideration two creameries, one receiving 62,500 pounds of butter fat 

 and the other double that amount, 125,000 pounds, as shown in Table 7. 

 Assuming that the New York price is 23c and that the average premium 

 is Ic, these creameries would get 24c gross for their product, from which, 

 of course, must be deducted the freight and commission. A creamery 

 receiving 125,000 pounds of butter fat and getting a 13 per cent overrun 

 could pay on this basis 22.18c per pound. The creamery getting 18.5 per 

 cent overrun could pay 23.36c, while the creamery getting 23 per cent 

 overrun could pay 24.34c, which would be 1.34c above the quotation for 

 butter. 



