TWICE A WEEK PICKUP SERVICE AT 

 the larm — your cream check on the re- 

 turn trip. 



were gettiny 37 cents for their Grade A 

 cream ciclivered at any one of the eight 

 IHinois Producers' Creameries — a prem- 

 ium of from three to six cents more than 

 the Missouri price! 



5, A recent study of cooperative 

 creameries in Nebraska by the barm 

 Ciredit Administration shows how farm- 

 ers tliere increased biitterfat prices. As 

 the number of co-operative creameries 

 increased, the margin between the Chi- 

 cago 90 score butter market and butter- 

 fat prices at Nebraska country points nar- 

 rowed. Here are the figures: 



1*>2S, 11 creanuTK-s operatint;. mati;in 12.~ir 



1926. n ■ ■■ " 12 19 



1V2-. 20 ■■ ■• 12.0^ 



1928. vl ■• 10. SI 



1929. ^1 ■• ■■ 9 S2 



I9>(), r " 9.16 



I9il. 1« " S.tl 



,,,^, j- •• •• •• - 1- 



I'Mi. -H •■ •■ ■■ 6 9S 



iv.i. u ■■ ■■ ■■ -.OS 



I'l^"!. II ■■ ■■ ~ ^S 



In the years between 1924 and 1934, 

 Nebraska farmers increased the price of 

 butterfat ^~~ cents a pound through 

 operating their own creameries. Says the 

 report of the study: Tlie fact that 

 the aver.igc margin lias tended to remain 

 fairly constant since 19.31 would seem to 

 indicate that the minimum margin estab- 

 lished by costs has been reached. It is 

 significant that this point was reached at 

 the same time that cooperative creameries 

 had been established in all the important 

 dairy regions of the state." Note, too, 

 that as the margin increased more co-op 

 creameries were establisheii. a repetition 

 of what happened in Illinois. 



(i. Butter fat prices have been raised 

 in the state since 1930 through the estab- 

 lishment of eight centralized producers' 



cooperative creameries. Evidence is found 

 in a comparison of prices paid hy the 

 jiools prior to 1930 with those paid by 

 Illinois Producers C reamerics today. 



In 1930, the Illinois Produce Nlarket- 

 ing Association contracted to sell butter 

 manufacturers its pool cream at the 

 highest bids. The contracts provided tor 

 a sliding price schedule based on the 

 90 score Chicago butter market. 



According to this scale, cream pools 

 sold butterfat to creameries at M^ ^ cents 

 when the butter market was 3 i cents 

 They kept about three cents to cover 

 operating costs and paid producers the 

 local market price which was around 30 

 cents. The profit was retained and re- 

 turned to patrons as patronage dividends. 



Compare this with present purchasing 

 prices paid by the eight farmer-owned 

 creameries in the state With the 90 

 score Chicago butter price at Vt cents 

 a pound, patrons get 3M and 3"^ cents a 

 pound for grade A and B butterfat, 

 respectively, delivered at the creameries. 



Thus cream producers received about 

 s2 cents a pound for butterfat. patronage 

 dividends included, as compared to 3~ 

 and 3S cents now. Both prices are based 

 on the Chicago 90 score butter market. 



7. ^X'hat would happen if tanners 

 cooperative creameries were to suddenly 

 close their doors, stop buying cream "' 



Price Jumps 3c 



One cream route in the state wa.^ not 

 paying its way. Pick-up service was 

 stopped. In less than two weeks former 

 patrons along the route complained that 

 they could no longer get tair priies tor 

 their butterfat, that prices had dropped 

 three cents. They wanted the Producers' 

 truck to call for their i ream again. 



The truck went back into service on 

 that route and fat prices jumped three 

 cents almost overnight. 



M. In most branches of farming, pro- 

 duLcrs arc using cooperative marketing to 

 get better prices tor their proikuts. 



lobacto growers arc poorly organi/ed. 

 1 hev get only 1 .? per tent ol the cigarette 

 smoker N dollar, .inorilmg to the ( on- 

 sumers Guide published by the ( on- 

 sumers' Counsel of the AAA 1 he .wc- 

 age retail price of a package of ligarcttcs 

 IS 12. SJ cents. Of that, the grower gets 

 only 1.19 cents. 



Compare this with the (SO tents of the 

 lonsuiners butter dollar Illinois tarmcrs 

 get. 



.Savs the Guide: lust as all the water 

 m a gallon )ug must pass through a nar- 

 row bottle neck, so some t'arm proilucts 

 must pass through a bottlcnetk in their 

 pass.ige from a large number of farms to 

 a still larger number of consumers ' 



Illinois farmers have invested SM).0()0 

 in nine looperative ireameries. or a 

 total of S2~(>.000.0(i. Ihey have re- 

 ceived S'^S.OOO.OO in dividends from 

 eight of the creameries now operating. 

 In addition, thev have increased the in- 

 lome of all cream producers m the state 

 hy Sl.'iOO.OOO.OO annually. Ilirough this 

 investment they have broken the eco- 

 nomic bottleneck betwc-en their farms and 

 consumers' table and are getting their 

 rightful share of the consumers butter 

 dollars 



Icirn o\er a new leat in vour book of 

 tacts and write: Butterfat pricc-s in Illi- 

 nois are AV I.IiAST three tents higher 

 because cream producers are operating 

 their own creameries. 



SOLVING KNOTTY CREAMERY PROBLEMS 

 Nine Co-op. Creameries give Frank Gaugler. left, and J. B. "Jack" 

 to think about. 



Countiss plenty 



NOVEMBER. 1937 



29 



