7^ REPORT OF THE SCOTTISH COMMISSION 



observed in the starting of a creamery. The first necessary pre- 

 liminary is to ascertain the quantity of available raw material in 

 the shape of milk in the particular district, and the extent to which 

 farmers will be prepared to pledge themselves to secure the requisite 

 capital to enable the business to be carried on successfully. It is 

 further necessary that the farmers forming the membership pledge 

 themselves to dispose of their whole milk through their own 

 Society. Briefly the obligation on members is threefold ; for {a) 

 Supply of milk ; (6) the original loan ; (c) conformity to certain 

 prescribed rules regarding feeding of cows, and treatment of milk 

 and milk utensils. The members appoint a Directorate from their 

 own number, usually five to nine, who in turn appoint a chairman, 

 secretary and treasurer, but these offices must never be combined 

 in the same person. The Directorate is authorised to contract a 

 loan for the erection of the dairy and the purchase of the necessary 

 plant. For the repayment of this, every member is held hable in 

 proportion to the number of his cows, for which he has signed an 

 agreement, until the loan has been repaid. The period for which 

 members usually pledge themselves is ten years, but in some cases 

 seven years is the period agreed on. Failure on the part of the 

 members to fulfil their obhgations in this respect is of exceedingly 

 rare occurrence. At the expiry of the prescribed period it is found 

 that the original loan is invariably wiped out, and a substantial 

 sum lying at the credit of the Association. Any member wishing 

 to retire from the membership of the Society during the first year 

 of its existence pays 20 kroner per cow and 2 kroner less per cow 

 for each year which has expired since the creamery was started. 

 When a farm changes hands, or has been sold, the successor or 

 purchaser invariably takes over his predecessor's obligations and 

 privileges in connexion with the creamery. After the original 

 debt on a creamery has been paid off", new members joining are 

 required to pay 10 kroner per cow for each cow for which they 

 sign an agreement, in addition to a subscription corresponding to 

 the amount per cow of the debt paid off. All milk is weighed at 

 its arrival at the creamery, and paid for according to the butter fat 

 it contains. Tests are regularly made to ascertain the fat contents, 

 and payment is made according to the Copenhagen butter quotation. 

 Different creameries have different regulations. Some pay at 

 the rate of 1 lb. of butter for every 32 lbs. of milk delivered, others 

 for every 2/ lbs. of milk, the idea being to leave a working margin 

 between what is the actual value of the milk and the sum paid to 

 the producers at the end of each month. The profits, after provid- 

 ing for payment of instalment of loan, depreciation on plant and 

 buildings, etc., is divided proportionately at the end of each finan- 

 cial year. The annual general meeting is usually held on the same 

 day as the profit-sharing day, and is usually observed as a sort of 

 festival. Ninety per cent, of the separated milk is taken by the 

 farmers for calf and pig feeding, at an agreed on price, usually | 

 to f of an ore per Ib.^ It is enacted by law that this milk must be 



^ In Danish money 100 ore = to the krone. The krone is of the value 

 of Is. l^d., or about 18 kroner to the pound sterling. 



