THE I. A. A. RECORD 



Page Seventeen 



St. Louis Milk Plan r • 

 ;-,:;. Is Finally Adopted 



Agreement Between Dealers and 



Producers Calls for Base and 



Surplus Rating, Get 



V , . -' Fairer Price ,;•.:.■,-:..:■ 



RECOGNITION by the dealers on 

 the St. Louis milk market of the 

 producers' right to bargain for a fair 

 price and better market conditions was 

 obtained following a recent conference 

 in which producers, distributors and 

 consumers were represented in St. Louis. 



The victory culminated successful 

 efforts by the producers during the last 

 eleven and one-half months to organize 

 the bargaining association, Sanitary 

 Milk Producers, and so gain representa- 

 tion on the market. 



As a result of the recent conference 

 the dealers agreed to a gradual increase 

 in price, endorsed the base rating plan 

 by which each farmer carries his own 

 burden of surplus, and agreed to check 

 testing by representatives of the dairy- 



men. 



Milk $2.43 Per Cwt. 



Under the new arrangement all milk 

 delivered during August will be paid 

 for at the rate of $1.90 per cwt. But 

 beginning September 1 the price will be 

 $2.10 per cwt., then for the next three 

 months, namely, October, November, 

 December, the base price to be paid for 

 all fluid sales will be $2.43 gross from 

 which a slight deduction will be made 

 to pay the 3 cent check-off to the co- 

 operative association and for the quality 

 improvement fund. 



Each producer's base amount for 

 1931 will be the average production of 

 his herd in the six months ending De- 

 cember 31, 1930. The Sanitary Milk 

 Producers wjll receive a 3 cent per cwt. 

 check-off on all members' milk. Under 

 the terms of the agreement a non- 

 member may not get more for his milk 

 net than the member receives after the 

 latter has paid his check-off. It was 

 agreed to promote a joint quality im- 

 provement campaign throughout the 

 area in co-operation with the National 

 Dairy Council. A unit of the council 

 will be formed at St. Louis in the near 

 future. 



' •': Ic for Quality Improvement 



The important work designed to give 

 the city of St. Louis the highest quality 

 milk of any city in the country will be 

 financed by a contribution of 1 cent 

 per cwt. by the producers which is to 

 be matched by a similar contribution 

 from the dealers. Non-members will 

 have deducted 2 cents per cwt. for the 

 quality improvement campaign. 



"This money will be spent by the 

 dairy industry at St. Louis," said A. D. 

 Lynch, I. A. A. Dairy Marketing direc- 

 tor, in explaining the project. "St. 

 Louis has a good milk supply at the 

 present time, but it can be greatly im- 

 proved. We want to give the consumer 

 as good or better milk than any re- 

 ceived on any market in America. After 

 we have raised the standard of our 

 product to the highest possible level we 

 intend to carry on a joint campaign to 

 increase sales. The people of St. Louis 

 are not consuming enough dairy prod- 

 ucts per capita. An increase of 10 per 

 cent in consumption within two years 

 is probable and a 20 per cent increase 

 in the next few years is not impossible. 

 The first job is to see that our product 

 is the purest and the best that can be 

 produced, our next job is to merchan- 

 dise it and advertise its superiority as a 

 food." 



' ■ Advisory Committee 



A joint advisory committee composed 

 of three producers, three dealers and 

 three consumers has been appointed to 

 hear grievances brought by any repre- 

 sentative in the name of the three 

 groups. 



The Sanitary Milk Producers with a 

 present membership of 6,600 obtained 

 during the past eleven and one-half 

 months set a new pace in co-o{>erative 

 milk marketing development. Never 

 before has an organization been so well 

 developed and recognition obtained in 

 so short a time. While the Pevely Dairy 

 Company, one of the largest dealers on 

 the market, has not yet approved all 

 the provisions of the marketing plan, it' 

 is confidently believed that it will co- 

 operate for the welfare of all when it 

 fully understands everything involved. 



Open New Offices 



The Sanitary Milk Producers wijl. oc- 

 cupy offices in the Railway Exchange 

 Building in St. Louis. President E. W. 

 Tiedemann who, in co-operation with 

 the Farm Bureau directors, has been 

 directing organization work during the 

 past year, has been named organization 

 manager. Other officers of the collec- 

 tive bargaining association are Martin 

 Ehmler, Orchard Farm, Missouri, vice- 

 president; E. H. Isenberg, Edwardsville, 

 Illinois, secretary, and G. R. Pearce, 

 Jerseyville, treasurer. 



At Insurance Convention 



"Are Multiple Lines Desirable in 

 Mutual Insurance Companies" is the 

 subject of an address delivered before 

 the National Association of Mutual 

 Insurance Companies in the annual 

 meeting at Los Angeles, Cal., on Aug. 



A. D. LTBck 



Lynch Takes Job with 



Sanitary Producers 



To Manage Milk Co-Operative Rep- 

 resenting St. Louis Dairymen 



AD. LYNCH, director of dairy 

 • marketing for the Illinois Agri- 

 cultural Association since 1922, re- 

 signed last week to become general 

 manager of the Sanitary Milk Produc- 

 ers, co-operative producers' organization 

 at St. Louis. Mr. Lynch contemplates 

 assuming his new duties with the dairy- 

 men's organization around Oct. 1. 



Mr. Lynch, a graduate of the South 

 Dakota State Agricultural College, left 

 the management of 

 a successful cream- 

 ery in the State of 

 Vermont to become 

 assistant to Prof. 

 Chris Larsen, dairy 

 marketing director 

 for the I. A. A. 

 from 1920-1922. 

 When Prof. Larsen 

 accepted the post as 

 dean of the Agricul- 

 tural College in 

 South Dakota, Lynch was promoted to 

 his place. 



Helped Producers 



During the past seven years Mr. 

 Lynch has made a notable record co- 

 operating with the Farm Bureaus in or- 

 ganizing the jnilk and butterfat pro- 

 ducers of Illinois into co-operative as- 

 sociations to give them a measure of 

 bargaining power and a voice in the 

 sale of their products. 



In addition to the early produce mar- 

 keting associations, Director Lynch laid 

 the ground work and assisted through- 

 out the development in most cases of 

 milk and dairy co-operatives at Quincy, 

 Peoria, Chicago, St. Louis, Blooming- 

 ton, Decatur, DeKalb, Rock Island, 

 Freeport, Springfield, and other points. 

 Several successful co-operative cream- 

 eries in northwestern Illinois were as- 

 sisted in their early stages of develop- 

 ment and during recent years Mr. 

 Lynch has given considerable time in 

 an advisory capacity to the producers' 

 organization at Peoria, Bloomington, 

 Champaign and Decatur. 



Action regarding Mr. Lynch's resig- 

 nation awaits the next meeting of the 

 I. A. A. board of directors. 



19 by J. H. Kelker, active manager of 

 the Farmers' Mutual Reinsurance Co. 

 V. Vaniman, director of service for 

 the I. A. A., is attending the meeting, 

 while on vacation, in an unofficial ca- 

 pacity, .^'v-:^ :.,.;, .:v/y-/v:'-' ^v 



iv-i-- 



