COOPERATIVE MILK-DISTRIBUTING PLANTS. 3 



quate accounting system is indispensable in keeping a check on tlie 

 business. 



A conviction on the part of the members that cooperation, or a 

 working together, will benefit each individually is essential for the 

 success of the organization. The members should understand that as 

 members of a cooperative organization they must give it their moral, 

 financial, and material support, for its success depends directly upon 

 them. Every member should regard the cooperative milk plant as a 

 business enterprise whose success will contribute to his success. Its 

 cooperative features give it no supernatural power that will keep it 

 from failure when it is mismanaged or not properly supported by its 

 members. 



Before launching into the operation of a cooperative milk plant, 

 adequate capital for financing it should be assured. Unless the plan 

 of financing will permit the purchase of necessary machinery, equip- 

 ment, supplies, etc., when the plant is started, provide adequate work- 

 ing capital, and enable additional equipment to be purchased, when 

 needed, during the operation of the plant, sooner or later financial 

 difficulties will be encountered. Complete estimates of the total 

 capital investment should be obtained from reliable sources, and the 

 plan of financing adopted should adequately provide for the raising 

 or securing of the necessary capital funds. Large loans, bonded in- 

 debtedness, or other liens against the organization should be avoided. 

 No financial handicap should be placed upon the organization, for 

 the problems to be met may be difficult enough without introducing 

 unnecessary financial ones. In fact, the organization should be 

 started under most favorable conditions and the problems of financing 

 should be solved before the organization enters into the business of 

 milk distribution. 



A fifth essential to the success of a milk- distributing plant, is the 

 maintenance of high standards in the quality of the product handled 

 and sold. The raw material received must be carefully produced 

 under sanitary conditions, must be handled by modern up-to-date 

 methods, and sanitary conditions must prevail in the plant. Without 

 high quality in the product, customers are likely to become dis- 

 satisfied and the business fail because of lack of patronage. 



Another essential is a sound business policy in conducting the busi- 

 ness of the organization. Such a policy must be adopted by the 

 board of directors, for without it the manager can not know that 

 his action will meet with the approval of the board. An organiza- 

 tion with a board of directors that has adopted a sound business 

 policy may succeed with a mediocre manager, where otherwise it 

 might fail. Likewise an organization with a most competent man- 

 ager but having a board of directors which will not support a sound 



