There's A ''Kick" in Millc 



Nearly 20 Tears' Experience in Co- 

 operative Milic Marketing in Illinois 

 Proves It 



L C. "IKE" HOCHSTHASSEH, McLean 

 CountT Milk Producers, makes a bacteria 

 count. Ike like* to keep the count down, 

 milk quality up. All milk marketing co-opa 

 ■trees quality improvement, it helpa sell 

 milk, puts more health in every quart. 



HERE'S more "kick" in a few 



/ gallons of milk than most folks 



\_y suspect. The basis for that 

 kick lies in the opportunity for profit af- 

 forded in milk distribution and process- 

 ing. Milk, like coal, steel, rubber, furs 

 and some of the other universally used 

 commodities, has figured in the accumula- 

 tion of the wealth of several nation-wide 

 corporations. 



In the early days of the dairy industry, 

 when milk passed directly from producer 

 to consumer, it was strictly local business. 

 But with the introduction of condensed 

 milk, evaporated milk, ice cream, pow- 

 dered milk and other products, the scope 

 of dairying and dairy marketing swelled 

 to national proportions. Refrigeration 

 and rapid transportation added to the 

 demand for milk, increased the size of 

 the industry and brought about a scramble 

 for control of markets. 



With about 40 million dollars worth 

 of fluid milk going to market each year, 

 it was quite natural that some of the 

 larger dairy corporations should seek con- 

 trol of the larger Illinois markets. 



Harmony between dealers and pro- 

 ducers prevailed during the period of 

 rapid expansion. But trouble started 

 brewing in the low grain prices of 19:10. 

 Producers tried to cash in as much grain 

 as possible by converting it into milk. 

 Milk surpluses formed. Fluid milk prices 



12 



By LARRY POTTER 



tumbled. Condenseries could not sell 

 their products and many were forced to 

 close. Others bought milk on a butter- 

 fat basis, sold fat for buttermaking. 



Then the producers charged the deal- 

 ers with reaping unfair profits. Producers 

 said dealers could, because of surpluses, 

 buy milk for their own price, sell it for 

 their own price. Producers supported 

 their charges with these facts: 



In 1912, consumers paid eight cents a 

 quart for milk for which farmers had re- 

 ceived four cents. During the war years 

 milk retailed for 16 cents and the farmer 

 got 12 cents. In 1920, consumers were 

 paying an average of 14 cents a quart 

 while producers were getting only five 

 cents. 



With incomes hit by low prices that 

 might have been raised through orderly 

 marketing, militant Illinois dairymen or- 

 ganized. Their objectives were orderly 



marketing and increased prices through 

 surplus control and a voice in the market. 



There were producers' bargaining or- 

 ganizations in the state before 1920. 

 Their only tool for increasing prices was 

 the strike. Each time they tried to force 

 dealers to pay more the dealers succeeded 

 in splitting the producers' groups into so 

 many factions that they were powerless. 

 Producers were no match for the wealthy, 

 organized dealers and processors. 



Producers in all parts of the state went 

 into action. In the years, 1920 through 

 1937, 15 producers' bargaining coopera- 

 tives and seven distributing cooperatives 

 were established on the major milk mar- 

 kets in the state. Most of these co-ops 

 were set up under local leadership with 

 assistance from County Farm Bureaus re- 

 inforced by lAA guidance. Farmers were 

 determined to get their fair share of the 

 consumer's milk dollar. 



MILK SALESMEN FOR 1880 PRODUCERS 

 Last year the sales committee oi Peoria Milk Producers, Inc. sold more than $446,000 

 oi milk at wholesale. Members oi the committee are. left to right, (seated) Ryland 

 Capron and lohn Hagenstoz, (standing) Joseph Stieglitz and Walter Neal. 



I. A. A. RECORD 



