44 



pointed out to the Commission that it is not always possible to allow for a profit per 

 hog as large as stated above. At times of low values and dropping prices current 

 quotations are held up. This condition occurred during 4 or 5 months early in 1908, 

 when quotations were maintained as high as possible to satisfy the producers, and 

 thus keep up the weekly supply. The return of good prices later enabled the associa- 

 tion to make their entire profits for the year during the last 6 or 7 months. Care has 

 always to be taken to see that the quotations during the year are on the safe side. It 

 is usually sufiiciently low to allow of a final dividend of from three-quarters of a cent 

 to one cent per pound for all deliveries during the year. Considerable competition 

 exists between co-operative associations as to which shall pay the highest final divi- 

 dends. 



The Commission was advised that no steps are taken by the association to dis- 

 courage heavy deliveries during any particular season of the year, as, for instance, the 

 fall when other countries have heavy runs. The farmers have learned the wisdom of 

 even distribution throughout the year. Apart from this, the farmers are guided in the 

 number of pigs fed on the quantity of milk they have for feeding. Since this is fairly 

 constant throughout the year, it follows that the pig stock is, as a rule, about the same 

 from month to month and from season to season. 



The affairs of each association are managed by a board of directors elected by the 

 members. The directors choose a manager and secretary. The manager, subject to the 

 supervision of an auditing committee, has complete control of the business — bi^ng the 

 hogs, hiring the help, curing and selling the bacon. He is a very carefully selected 

 man and gets a good salary. The managers met by the Commission were very brilliant, 

 hard working men, keenly alive to all the details of the work. Some of them at least 

 go to England once or oftener each year to study the market and endeavour to extend 

 their trade. 



Necessarily the co-operative factories in Denmark vary in size and capacity. Seven 

 or eight factories have capacities for handling about 20,000 hogs per year. These are 

 the smaller plants. One of such, situated at Hasloe, gets its pigs from a radius of 

 about 15 miles. About 18,000 are received by wagon and 2,000 by rail. A large factory 

 was visited at Frederickssund, having a capacity of 50,000, or 1,000 per week. Others 

 again run higher. The value of such a factory fully equipped with modern machinery 

 is from $60,000 to $70,000 and requires a working capital of $50,000. The association 

 owning this plant has a membership of 3,000. The capital ($110,000) was raised in a 

 local savings bank at a rate of interest of 4 per cent, the whole to be paid back out of 

 the yearly dividends in from 20 to 30 years. In accordance with the general system 

 over the country the shareholders guarantee the bank for the loan to the factory accord- 

 ing to their average supply of pigs. 



The cost of handling pigs is larger in the smaller factories. According to the ex- 

 perience of the Danish Co-operative Slaughteries during the past ten years the expenses 

 as regards interest, management, labour, etc., was as follows: — 



In a factory with a supply up to 10,000 pigs $1 10 per hog. 



" " 15,000 to 30,000 pigs . . 1 00 " 



« « 30,000 to 60,000 " . . 85 " 



« « 60,000 to 90,000 " . . 70 " 



'" " 90.000 to 120,000 " . . 60 " 



The small and medium sized factories handling up to 60,000 pigs have less expense 

 than the larger ones on railway freight, and also lose less through shrinkage from live 

 to dead weight. These factories are also able to command higher prices for their offal 

 articles, as a limited quantity of these can always be sold locally. On the other hand, 

 larger factories have often to sacrifice offal on account of over-supply. The co-operative 

 associations conduct local retail stores in which all classes of their products are sold. 

 These provide a profitable market in many by-products that cannot be shipped with 

 advantage. 



