grees. At the same time a cooperative 

 may develop a policy which will fa- 

 cilitate the adoption of tank assem- 

 bly by producers and overcome the 

 major objections of financial strain. 

 A mixed operation of cans and tank 

 may be continued in the short run 

 although maximum savings can be 

 obtained only with one hundred per 

 cent conversion. 



3. A Purchase Policy for 

 Cooperatives 



Some cooperatives have entered in- 

 to quantity purchase plans for farm 

 tanks with manufacturers. These 

 quantity purchases have allowed a 

 price discount. The models pur- 

 chased will be standard for all pro- 

 ducers and may be either the model 

 already in production by that com- 

 pany or a cooperative sponsored 

 economy model of tank. 



Cooperatives in an area could join 

 together in an inter-cooperative pur- 

 chase plan which would provide 

 greater opportunity for quantity dis- 

 counts. The cooperative might also 



purchase farm tanks and lease them 

 to members unable to meet the initial 

 cost. This introduces the problem of 

 providing adequate service for pro- 

 ducers. The cooperatives are general- 

 ly in a more favorable position to 

 borrow funds than individuals. 



In addition, the cooperatives, at 

 some future time, might own the 

 tank trucks and return any savings 

 or earnings to producers through 

 their annual dividend payments. 



4. Operating Problems for 

 Cooperatives and Non- 

 Cooperatives are Similar 



There is no important difference 

 between the seasonality of production 

 of cooperative members and of non- 

 members, the size of producers, or 

 the distance milk is assembled. There- 

 fore, the operating problems facing 

 both types of organizations are simi- 

 lar. Differences in dealer operating 

 problems tend to be between states 

 rather than between types of milk 

 handlers. 



Table 25. Percentage of Farms Supplying 1000 lbs. per Day and Under 



Farms Served by 

 Cooperatives 



Farms Served by 

 Proprietary Dealers 



Maine 



New Hampshire 



Vermont 



88.4 

 86.4 

 91.0 



92.2 

 89.1 

 96.1 



Table 26. Percentage of Farms with Low-high Month Seasonality Ratio 



of 50 and over 



Farms Served by 

 Cooperatives 



Farms Served by 

 Proprietary Dealers 



Maine 



New Hampshire 



Vermont 



57.3 

 65.1 

 62.4 



64.7 

 76.4 

 61.4 



25 



