ig 2 THE BUTTER INDUSTRY IN UNITED STATES [ 4I 6 



is usually an important middleman in all big cities. Ac- 

 cording to this study the average total margin received by 

 the dealers in the city is $0.0616. This of course is an 

 average for June and December in three years. The dealer's 

 margin is frequently larger and very often smaller. Large 

 lots of butter are sometimes sold at a profit of a small frac- 

 tion of a cent. Obstructions in the movement of freight 

 sometimes cause a decided shrinkage in the receipts of 

 butter for a week during which the price may rise, and the 

 dealers having butter on hand at such a time can increase 

 their margin considerably. Table no. 19 shows how the 

 dealers' margin fluctuates. 



The retail butter price is the price paid by the consumer, 

 while the wholesale price is the amount paid by the whole- 

 sale dealer to the producer. The shipper, as a rule, unless 

 he is a member of the Elgin Board of Trade, prepays trans- 

 portation charges. The difference therefore between the 

 retail and wholesale prices represents the dealers' margin. 

 It must be remembered that a great deal of the butter is 

 bought at a premium or at a price slightly higher than 

 wholesale prices. This has the effect of reducing the whole- 

 sale dealers' margin. The total average of $0,067 shown in 

 table no. 19 as the dealers' share is therefore too high. 

 Assuming that $0.0616 is approximately the average total 

 compensation received by the middlemen, the margins of 

 the wholesale dealer, jobber, and retailer are probably very 

 nearly $0.0125, $0.0150 and $0.0335 respectively. 



SEASONAL PRICE FLUCTUATIONS 



Seasonal fluctuations are very pronounced in the price 

 of butter due to seasonal variations in the amounts pro- 

 duced. The period of greatest production is during the 

 months of May, June, and July. This is the time during 

 which grass is at its best. The cows are turned into the 



