MAEKETHiTG PEACTICES OF CEEAMEEIES. 



13 



buj^ers of his milk and cream. The exchisive distributing agent of a 

 centralizing creamery may receive a salary, a salary and commission 

 on sales, or a commission alone. Not infrequently the butter is pur- 

 chased on a regiilar contract basis. Thus the ownership of the goods 

 passes, while in the former instances it remains with the creamery. 

 The cooperative mar- 





31 





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w 



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keting associations 

 may be selling agents 

 of local creameries. A 

 brokerage agent usu- 

 ally represent a jobber 

 or wholesaler in buy- 

 ing butter from a cen- 

 tralizing creamery or 

 wholesale dealer. 

 Cold-storage firms do 

 not usually buy or sell 

 butter, although they 

 frequently make loans 

 on goods put in their 

 storages. , 



COST OF MARKET DISTRI- 

 BUTION OF CREAMERY 

 BUTTER. 



As creamery butter 

 in passing from pro- 

 ducer to consumer may 

 be handled through 

 different channels of 

 trade, the average 

 margin or approxi- 

 mate cost in one chan- 

 nel may not represent 

 the cost in any other. 



The following in 

 general was found to 

 be approximately the usual margin on tub butter when it passed 

 direct from wholesale receiver to jobber, from jobber to retailer, and 

 then from retailer to consumer. 



Cents. 



Wholesaler's gross margin \ 



Jobber's gross margin \\ 



Retailer's gross margin 4 





CO/VSC//!^^/? 



Fig. 4. — Channels of distribution of creamery butter from 

 producer to consumer. The most usual channels are 

 indicated by the heavy lines. The rectangles denote a 

 change of ownership of goods and the circles an inter- 

 vening agency between seller and buyer — usually a 

 cooperative organization representing the seller. 



Total 6 



