McLean county 



CREAMERY, MILK ASSOCIATIONS 



CONSOLIDATION of the Prairie 

 Farms Creamery of Bloomington and 

 the McLean County Milk Producers As- 

 sociation received final authorization in 

 February by vote of the membership at 

 the Milk Producers annual meeting in 

 Bloomington. 



The two organizations will be united 

 by Nov. 30 as the Prairie Farms Cream- 

 ery of Bloomington. 



The consolidation became inevitable 

 as recent trends, accelerated during the 

 war, caused Prairie Farms Creamery to 

 duplicate some operations of its parent, 

 the McLean County Milk Producers As- 

 sociation. 



The Milk Producers Association dealt 

 strictly with fluid milk and operated 

 within a radius of 30 miles of Blooming- 

 ton while the Qeamery reached out more 

 than twice as far. Since fluid milk brings 

 highest prices, farmers not selling 

 through the Milk Producers Association 

 wanted to share in the fluid milk market 

 and began selling milk to the Creamery. 



Competed With Each Other 



A study made by the University of Il- 

 linois revealed that prices received by 

 producers in the market in recent years 

 have been a little higher than prices of 

 milk used for manufacturing purposes. 

 The study further revealed that there 

 were good possibilities of increasing re- 

 turns to all dairymen through a sound 

 unified program. 



When it reached the point that the 

 two organizations were actually com- 

 peting with each other it was decided to 

 do something about it. A committee was 

 therefore appointed about a year ago to 

 study the situation and make recom- 

 mendations. The consolidation resulted. 



Membership of Prairie Farms Cream- 

 ery paved the way for consolidation last 

 fall at their annual meeting by voting 

 approval of increased capitalization and 

 an increase in the size of the board of 

 directors to include five milk producers. 



In its report, the committee concluded : 

 "The consolidation, if properly effected, 

 will avoid unnecessary outlay of capital 



expenditure, eliminate duplication of 

 effort, and prevent conflicting interests 

 among dairymen." 



The legal, research, and dairy market- 

 ing departments of the Illinois Agricul- 

 tural Association and the department of 

 agricultural economics of the University 

 of Illinois assisted the committee in its 

 study. 



A survey of present activities led the 

 members of the committee to the con- 

 clusion that closer correlation of the 

 services of the two organizations was es- 

 sential. One healthy factor in the union 

 was the fact that both organizations are 

 very active and in sound financial condi- 

 tion. Both also have been under the 

 same management, have used the same 

 office facilities, and have had producers 

 serving on both boards simultaneously. 



The Creamery also has proceeded to 

 install equipment to handle an increas- 

 ing volume of whole milk besides the 

 machinery it has for the processing of 

 cream and butter. 



Recommendations of the reorganization 

 committee included approval of the arti- 

 cles of incorporation of Prairie Farms 



Creamery for the new organization; pro- 

 vision for a date to begin consolidated 

 operations (Nov. 30) ; liquidation of the 

 McLean County Milk Producers Associ- 

 ation and payment of each producer's 

 equity in the remaining assets according 

 to patronage; a request for new market- 

 ing agreements to be signed between 

 Creamery and members of the Milk 

 Producers Association; provision for re- 

 organization of the board of directors; a 

 request of the board of directors that it 

 set up equitable prices to be paid pro- 

 ducers for milk and farm separated 

 cream, and that the costs and savings of 

 the consolidated company be shared 

 equitably by all producers. 



Speakers at the annual meeting in- 

 cluded E. E. Houghtby, lAA director 

 of dairy marketing; Judson P. Mason, 

 lAA assistant director of dairy market- 

 ing; Prof. R. W. Bartlett, University of 

 Illinois department of agricultural eco- 

 nomics; and Charles W. Holman of 

 Washington, D. C, secretary of the 

 National Milk Producers Federation. 



Members of the reorganizing commit- 

 tee who devoted a great deal of time 

 to the study of the proposal for consoli- 

 dation were: John E. Rocke, chairman, 

 and Joash Stutzman, vice chairman, both 

 of Carlock; Elmer Orendorff, secretary, 

 Randolph; Evar Hanell, Bloomington; 

 Menno Keim, Danvers; J. E. Gresham, 

 Bloomington; E. J. Miller, Normal; 

 Lester Elson, Chenoa; A. V. Birky, Hud- 

 son; W. B. Staubus, Stanford; C. R. 

 McCue, Bloomington; G. W. Pitts, Mc- 

 Lean; H. R. Waggoner, Saybrook; Clar- 

 ence R. Ropp, Normal ; and Elmer Sharp, 

 Congerville. 



George Pitts (left), president of the McLean County Milk Producers Association, and 

 Harold Enns, president of the Prairie Farms Creamery of Bloomington, extend mutual 

 congratulations following approval by the membership of the consolidation of the two 

 organizations. Others (oil contributed to the study that resulted in the union) are Jud- 

 son P. Mason, lAA assistant director of dairy marketing; Prof. R. W. Bartlett of the de- 

 partment of agricultural economics, U. of 1.; Forrest Falrchild, manager of both organ- 

 izations; and E. E. Houghtby, lAA director of dairy marketing. 



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L A. A. RECORD 



