236 MANAGEMENT OF DAIRY PLANTS 



chant, or broker and sells to the retailer. As already stated, the 

 creameries and cheese factories sell more of their products out- 

 right at wholesale than on consignment. 



IV. Marketing Through a Cooperative Selling Agency. 

 A cooperative selling agency may be organized by manufacturers 

 for the purpose of marketing their own products. The cost of 

 operating the agency is borne by all its members in proportion 

 to the amount of money obtained for goods sold through the 

 association. Several cooperative selling agencies have been 

 organized in the United States for the marketing of cheese, and 

 in Europe many associations have also been organized for the 

 marketing of butter. This has not, up to the present time, been 

 regarded with favor in the United States, although Minnesota 

 reports some work along that line. 



Theoretically the cooperative selling agency should be en- 

 couraged, for it reduces the number of middlemen. The first 

 difficulty that such organizations experience is lack of capital and 

 for that reason the patrons of the creamery become discouraged, 

 as their money is not forthcoming as soon as expected. This 

 delay may be further increased, because the agency, when 

 starting, has not as ready an outlet for its goods as the older 

 and better established firms; therefore the new agency is 

 often compelled to allow butter to accumulate in the warehouse. 

 Such conditions will prevail until it is able to establish a satis- 

 factory outlet for its goods; for that reason such an institution 

 may not always, during the early part of its existence, be in a 

 position to return a satisfactory price to the manufacturers. 



The success of the cooperative selling agency depends much 

 on the ability of its manager and directors. As the board of 

 directors is elected, it may be criticized as lacking in stability 

 when conparing it with an old-established and well-managed 

 business concern. If a capable manager were secured with the 

 understanding that he would remain permanently if he pro- 

 duced results and if the board of directors were also elected with 

 the view of efficiency, then a cooperative selling agency should 

 be a profitable investment to all interested. 



The cooperative retail milk distributing association is an 



