MARKETING CREAMERY BUTTER. 37 



jobbers, who supply the retailers, hotels, and restaurants. The 

 gross margins taken by butter distributors depend upon a number of 

 factors, such as kind of business, volume of business, extent of charge 

 accounts, competition, and general market conditions. 



Approximately one-tenth of the market receipts of butter is placed 

 in public cold storage. Chicago, because of its location, is considered 

 the most important place for the storage of butter. The cost of 

 financing and handling butter in storage is approximately one- fourth 

 cent per pound per month. 



Regular, scheduled refrigerator rail service is provided for butter 

 in the more highly developed dairy sections. Express service often 

 is employed for shipping to near-by markets and may be used in 

 combinations with refrigerator freight service in reaching the more 

 distant markets. Cooperation among creameries has proved of value 

 in obtaining and using refrigerator service where creameries are 

 located in close proximity to each other. 



State brands for butter which creameries are permitted to use 

 when they have complied with State requirements have been adopted 

 by Minnesota, Iowa, and Michigan. They are intended to convey a 

 guaranty of purity and quality in the butter which will be of mutual 

 benefit to both the producer and the consumer. 



The establishment of brands is essential for effective advertising 

 or in retaining the identity of the manufacturer of a product. Ap- 

 propriate advertising and salesmanship are also two vital factors in 

 successful market distribution. In marketing a branded product 

 it is highly important that a sanitary and attractive package be used 

 and that a certain standard of quality be maintained. 



