COST OF MARKETING DAIRY PRODUCTS 267 



II. Selling Sweet Cream and Milk at Wholesale. As the 



commercial ice cream business is increasing at a rapid rate, and 

 as the population of the cities is increasing, the demand for 

 sweet cream for ice cream making and for retail purposes is 

 becoming greater and is also more difficult to meet. It is there- 

 fore possible for creameries to establish markets for sweet 

 cream and obtain more money therefor than can be obtained 

 by making the cream into butter. 



The creameries of the middle West have experienced no 

 difficulty during recent years in obtaining for sweet cream a 

 price of 10 cents or more above highest New York quotations for 

 extras F. O. B. their shipping station. Under such conditions, if 

 the quotation of the New York market for extras were 30 cents 

 and sweet cream were sold at 40 cents per pound butter fat and if 

 the cream were made into butter and sold at 30 cents per pound 

 then one pound fat made into butter would be worth 30 X 



122 



= 36.6 cents. Considering that the cost of preparing the 

 100 



cream for marketing it at wholesale is equal to the cost of manu- 

 facturing it into butter then a gain of 3.4 cents has been made 

 by marketing the product in the form of cream. 



If sweet cream under the same conditions were sold at 50 

 cents per pound butter fat as against 40 cents per pound of 

 butter then a pound of fat made into butter would be worth 



122 



40 X = 48.8 cents, or a gain of only 1.2 cents would be ob- 



100 



tained by selling sweet cream. It is fair to assume that the cost 

 of pasteurization and cooling of the sweet cream to be sold 

 will about equal the cost of manufacturing the butter, as 

 sweet cream should be cooled to within a few degrees of freez- 

 ing before it is shipped. The method of preparing sweet cream 

 for market is the same as that for preparing sweet cream for 

 ice cream making. 



This method of disposing of the butter fat is particularly 

 advantageous to the cooperative creamery. The producers 

 are willing to furnish sweet cream to the creamery if they are 



