138 CREAMERY CALCULATION 



(1) Pay so much per pound of butter-fat based upon some 

 standard market price, such as Chicago or New York. The 

 amount paid now by the central plants for butter-fat is usually 

 2 or 3 cents per pound below " New York Extras," and the com- 

 pany pays all freight or express charges. 



(2) Pay per pound of fat based upon the net income of the 

 creamery. 



1. The former method of paying for butter-fat has become 

 quite common. Nearly all the hand-separator or central plants 

 are paying for butter according to this method. Payments are 

 usually made at each delivery or every two weeks. Although 

 this causes more work, it is much more satisfactory to the patrons 

 than to pay only-arT^e end of each month. 



In order to calculate dividends when paid at the end of two 

 weeks or at the end of each month, the first step is to find how 

 many pounds of butter-fat have been delivered by each patron. 

 If composite samples are taken, and these tested for fat at inter- 

 vals of one week, which would make about four tests during the 

 month, and two during half a month, the results of the several 

 tests may be added, and the sum divided by the number of sam- 

 ples tested. This may give the average test, but it must be borne 

 in mind that this method is also likely to give wrong results. 

 Especially is this so when cream is delivered which varies in 

 quantity as well as quality during the different parts of the month. 



If cream only is being received, it is a good plan to test each 

 patron's cream every day, as it is more or less difficult to get 

 absolutely accurate composite samples from creams of different 

 richness. Besides this, the patrons can get the test as well as 

 the weight of the cream of each previous day's delivery, and thus 

 know how their account stands from day to day. A little more 

 labor is involved in doing this, but in the long run it keeps the 

 patrons better satisfied. 



2. If the price of butter-fat per pound is being based upon the 

 net income, as is the case in nearly all co-operative creameries, 

 and also in many proprietary creameries, the first step is to find 

 out how much butter-fat each patron delivered during the spe- 

 cified time, two weeks or a month, whichever may be the case. 



