2 BUTiLETIN 1095, U. S. DEPARTMENT OF AGPJCULTUEE. 



sale of milk to city dealers. To distribute cooperatively a consider- 

 able proportion of tlie milk supply of a large city would require an 

 organization with a large capital. The problem of operating large 

 milk-distributing plants is more complex in large cities than in small 

 cities where the producers are located in the immediate vicinity of 

 the city in which the j)lant is established. 



ESTABLISHING A COOPERATIVE MILK PLANT. 



The advisability of establishing a cooperative milk-distributing 

 plant can not be determined without first having obtained complete 

 information as to local conditions. To obtain this information a 

 careful survey of the local situation should be made. This survey 

 should include such important factors as the present marketing 

 methods and conditions, existing marketing facilities, the direct bene- 

 fits of a cooperative plant to producers, the attitude of the producers, 

 the support likely to be given the enterprise, the volume of business 

 available, means of financing the venture, and such other information 

 as will be helpful in determining the possibilities of success in operat- 

 ing a cooperative plant. 



An actual need for a cooperative milk-distributing plant should 

 exist among the producers. A desire and demand for a cooperative 

 plant should be manifested by the producers themselves. Unless 

 the sentiment of the producers is strongly in favor of a cooperative 

 plant, and they feel that a plant is an absolute necessity for the solu- 

 tion of their problems, adequate financial support and sufficient vol- 

 ume of business for successful operation may not be obtained later 

 when needed. Active leadership of a sane and sound character must 

 exist somewhere among the producers, for it will be required in the 

 administration of the business later by the board of directors. 



ESSENTIALS FOR SUCCESS. 



A first essential for success in a cooperative plant is sufficient vol- 

 ume of business to make economical operation possible. The actual 

 supply of milk pledged for delivery to the cooperative plant must be 

 given careful consideration. If only a small part of the milk pro- 

 duced in the locality is pledged, it may be impossible to operate the 

 plant efficiently and economically. Specific figures can not well be 

 given, but it has usually been found that unless at least two-thirds of 

 the milk marketed locally is pledged to the organization, it is ad- 

 visable to defer the establishment of a cooperative plant until the 

 necessary support has been obtained. 



Efficient management is essential in any business. Especially is 

 this true in cooperative milk plants, because many technical and prac- 

 tical problems must be handled properly to obtain best results. Effi- 

 cient business methods are essential to good management and an ade- 



