8 5 4 



READINGS IN RURAL ECONOMICS 



a kilo (26.6 cents per pound) at the auction sales during the first 

 part of August. The retailers in the market sold it for 3.80 francs 

 to 3.60 francs a kilo (33.2 cents to 31.4 cents per pound) accord- 

 ing to the length of time it had stayed on their counters. The 

 retailers in stores generally sold it for 4 francs to 3.80 francs a 

 kilo (34.9 cents to 33.2 cents per pound). 



A vertical section from farmer to consumer, taken August I, 

 191 3, is- as follows : 



Farmer gets for 20.35 liters at 12 centimes . . 

 Creamery margin (collecting, making, packing, etc 



Freight to Paris 



Refrigerated cars 



Octroi 



Cartage 



Unloading and weighing 



Abri 



Commission (grocer pays 3.05 francs) .... 

 Grocer's margin 



Price consumer pays 



Francs per Kilo 

 of Butter 



44200 

 24915 

 09235 

 OO50O 

 14500 

 OI OOO 

 OI50O 

 OI OOO 

 09150 

 85000 



Dollars per 

 Pound 



2I 35 

 .0218 

 .008 r 

 .0004 

 .0126 

 .0009 

 .0013 

 .0009 

 .0080 

 .0732 



3.90000 



3407 



This table shows the creamery's margin to be but 24.9 cen- 

 times. As shown by the balance sheet for 19 12, the average cost 

 of making 1 kilo of butter is almost 36 centimes. The reason 

 for the loss is that the price of butter was lower than it had been 

 any time since the creamery had started, and the creamery still 

 paid its regular summer price of 12 centimes a liter. It means 

 that the next month they would have to keep their milk price 

 down even though the price of butter went up. 



A good example of cooperative creamery that does not belong 

 to the association of creameries is at Baignes, in Charente. It 

 was started about twenty years ago when the cooperative move- 

 ment first started in France. This creamery paid 12 centimes 

 a liter during July, 191 3. It generally took 22 liters to make 

 1 kilo of butter. Thus the creamery pays 2.64 francs for enough 

 milk to make 1 kilo of butter, but if we subtract from this the 

 value of the skim milk (2 centimes a liter) we get 2.20 francs 



