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ing Dairymen at 

 St. Louis ? I 



, By G. Edwin Popkess . 



DAIRYMEN of the St. Louis milk 

 territory are recording the year 

 1934 as one characterized by sub- 

 •tantial increase in milk prices, compara- 

 tive harmony between producers and dis- 

 tributors, and general acceptance that 

 the AAA license plan has materially as- 

 ■isfed Sanitary Milk Producers in efforts 

 t« carry out the program for dairy mar- 

 keting adopted at the time of its organ- 

 ization six years ago. 



The contrast between conditions pre- 

 TaiUng at that time and the present set- 

 up is indeed striking. Six years ago the 

 St. Louis milk territory was regarded as 

 the most difficult one in America to or- 

 ganize. The market presented a picture 

 lubstantially as follows: 



First, a few large dealers handling 

 aboat 85 per cent of the milk with some 

 30 or more smaller dealers distributing 

 the other 15 per cent with some 12,000 

 farmers producing the milk supply. 



Prices were established once a month 

 by dealers, which farmers of necessity 

 accepted as the only outlet for their milk. 

 Th« Milk Shed had become greatly en- 

 lai^ed and covered an area extending 

 m^ve than l(Kl miles from St. Louis. 



Production Uneven 



Production was extremely uneven with 

 lieavy production beginning in the fall 

 axtending throughout the winter, reach- 

 inC the peak in May followed by a short- 

 age during the summer months. This 

 necessitated bringring in milk from out- 

 Bi<ie territories and contributed to en- 

 larging the Milk Shed. 



The price situation was entirely in the 

 hands of the distributor, with the result 

 that the dealers' spread was one of the 

 widest in the country. 



All these conditions, combined with 

 dissatisfaction and bitterness from the 

 failure of a marketing company a few 

 years befbre, resulted in a situation in 

 which the producers were in an almost 

 hopeless condition. 



Confronted by this situation, those 

 responsible for organizing Sanitary Milk 

 Producers realized that for ultimate suc- 

 cess a definite program must be adopted 

 and followed. It was recognized that any 

 Association which would continue in suc- 

 cessful operation must render definite 

 •*fvice to its members; in other words 

 that the result is worth the price. 



The following seven point program 

 adapted to the needs of this territory 



was adopted: 1. Collective bargaining; 

 2. Surplus coiltrol; 3. Checking weights 

 and butter fat tests; 4. Quality improve- 

 ment; 5. Check on financial rating of 

 dealers; 6. Accurate market information; 

 7. Advertising for increased sales. 



This was the program around which 

 Sanitary Milk Producers was organized. 

 It was sound then and is still sound. A 

 further point has been added, and that is 

 farmer control of hauling. 



Increasjs In Milk Price 



In checking the results of the Associa- 

 tion's work during the past six years, we 

 find that thje increase in milk price, 

 shown by official figures recently issued 

 by Fred L. Shipley, the Market Adminis- 

 trator, showed for the month of October 

 1932 that the weighted average price was 

 90c per cwt. with a 19.79c butter mar- 

 ket; the weighted average price for Oc- 

 tober 1933 was il.l6 with a 23.01c butter 

 market; and the weighted average price 

 for October 1934 was |1.71 with a 25.91c 

 butter market. 



While these prices are probably not as 

 high as many dairymen would like to 

 see, they are, nevertheless, substantially 

 above the previous years. 



Charts prepared by the University of 

 Illinois giving milk prices in the St. Louis 

 Milk Area for the past 25 years show 

 that from the time of the Association's 

 first business contracts in 1931 up to 



date, the price received by dairymen has 

 been substantially aboye the condensery 

 average. 



Previous to this, St. Louis milk dis- 

 tributors had paid about a condensery 

 limit from 1909 to 1931. Little has been 

 done so far regarding the matter of sur- 

 ' plus control, which is recognized as a na- 

 tional problem and one difficult to handle 

 successfully in any one local area. The 

 Association now has a staff of eight check 

 testers who test the milk of the members 

 in every plant in the St. Louis area. 

 Support Milk inspection 



The Association has supported the pas- 

 sage of the recent milk ordinance pro- 

 viding thorough inspection for all farm- 

 ers producing milk for St. Louis. The 

 plan includes a contribution of one cent 

 per cwt. from the Association and one 

 cent from the dealers, which fund will be 

 turned over to a newly organized "Milk 

 Commission" on which there will be equal 

 representation of producers, distributors, 

 and consumers. This milk commission 

 will employ the inspectors who are to do 

 the country work and turn them over to 

 the Health Department, thus removing 

 the country inspection from political con- 

 trol. 



The Association maintains a complete 

 file showing credit ratings on all buyers, 

 and at various times removes milk of its 

 members from dealers who were unable 

 to pay. 



A publication, known as the Sanitary 

 Milk Producers' Bulletin is mailed out 

 monthly to all the 1-1,300 members, con- 

 taining as much market information as 

 possible. This is supplemented by coun- 

 try meetings in which every effort is 

 made to inform the membership fully as 

 to conditions on the St. Louis market, 

 the work and the problems of the Asso- 

 ciation. 



(Continued on page 34 > 



0. 



TUri'LE, OOVEBNXEKT BUTTER OEASER ID KODEKN PLAMT OF PaODUCEHS CREAlCEmT 

 p&lrn. The Chunpurn plant ii prodncins ezctptianallT fiat "Prairie Firmt" butter ihowitc tk* 

 'd coH>permtloa of cr«am producer patrons In delireriDC biyh qoality cream. 



FEBRUARY. 1935 



