COOPERATIVE MILK-DISTRIBUTING PLANTS. 21 



Closely related to the problem of obtaining an adequate supply is « 

 that of maintaining proper quality in the supplies received. Much 

 may be accomplished in improving the quality of the supply received 

 by educational work among the producers and by offering incentives 

 in the price paid the farmer for the production of the better qualities. 

 Constant attention, both at the plant and on the farm, should be 

 given to the quality of milk furnished by each producer, and frequent 

 tests should be made to determine the purity and butter-fat content. 

 Premiums based upon the butter- fat content, absence of sediment or 

 visible dirt, and low bacterial count may be used to encourage de- 

 livery of highest quality. The written contracts entered into by 

 the organization and its producers may specify the temperature to> 

 be maintained and time of delivery, as well as the time, frequency,, 

 and basis of payment. 



The consuming public is coming more and more to appreciate 

 high quality in dairy products and is demanding it. Poor quality 

 is frequently the cause of loss of patronage and failure of milk-dis- 

 tributing plants. High quality is the first essential in obtaining and 

 maintaining patronage. It begins at the farm and must not be neg- 

 lected either there or at any point between the producer and con- 

 sumer. Good quality and good service are essential to obtaining an, 

 increased business. 



In cooperative milk-distributing plants the problem of determining 

 upon a satisfactory price agreement with the producer should not 

 be difficult, since price policies are largely determined by the board 

 of directors in conference with or as representatives of the patron 

 members. Furthermore, an agreed margin between producer and 

 consumer prices may be established and any surplus arising may be 

 distributed back to the producers on a pro rata basis, or, what is per- 

 haps better, the plant may be operated on a net-return basis. 



Although at some producers' cooperative milk-distributing plants 

 the practice of purchasing the milk from the producer at a stipulated 

 price is followed, the plan of prorating the proceeds for certain 

 periods to the patrons in accordance with raw materials furnished^ 

 after deducting necessary charges for operating expenses and re- 

 serve, is to be preferred. The producer who realizes that he is a part 

 of an institution which is truly cooperative should be in hearty ac- 

 cord with this method. If the milk is purchased outright at a definite 

 price, the margin between this price and that charged the consumer 

 on account of unforeseen conditions may not be sufficient to provide 

 for the expense of operation. It is impossible at times to foretell 

 how much of the milk delivered during any month will be required 

 for the whole-milk trade and how much must be manufactured into 

 by-products. While an organization that purchases the milk from 

 108510°— 22 1 



