DISTRIBUTION OF MILK 109 



any surplus.* It may be questioned, however, whether 

 the farmers will in the end receive a higher net price in all 

 cases. These cooperative plants will have to handle the 

 milk in much the same way as the men to whom the 

 farmers formerly sold the surplus and will have to enter 

 the trade channels in competition with them. Unless 

 the farmers get operators who are skillful and business- 

 like and elect directors who are sufficiently far-seeing and 

 who have a sufficiently clear conception of the price-mak- 

 ing forces, some of these plants are certain to meet with 

 financial reverses. B. H. Rawl, in a recent article, gives 

 the following requisites for the successful operation of a 

 plant such as is contemplated by a large number of these 

 producers. "First, efficient management; second, large 

 volume of milk of high quality; third, adequate equipment 

 and capital; and fourth, markets." 



"All of these conditions," he continues, "are not neces- 

 sary to enable the creamery to produce certain by-prod- 

 ucts, but they are necessary for the plant that utilizes all 

 the constituents of milk to the best advantage." ^ 



Philadelphia has, since January, 1920, been handling 

 its surplus problem by paying a basic price, determined 

 by conference, for the following percentages of the average 

 monthly production for the months of October, November, 

 and December, 1919: 



January loo April loo July no 



February. .. .100 May. ...no August 105 



March 100 June.... no September. .100 



"For milk produced in excess of the stated percentage 

 amounts the price to be received would be determined 



' MUk Magazine, Sept., 1919, p. 17. 



' Hoard's Dairyman, Nov. 28, 1919, p. 880. 



