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DRY-FARMING CONGRESS, WICHITA, 1914 



cream is the principal product sold, then he should organize a cream 

 marketing association. If butter is the principal product sold, then he 

 should organize a creamery association and manufacture and market but- 

 ter. I know of the results of such organization for the purpose of better 

 marketing and therefore know that I speak the truth. In Oklahoma, I 

 know of one community where the principle dairy product marketed was 

 milk and before they organized 32 cents to 35 cents was the best that 

 they could get for the butterfat in whole milk. Since they have organ- 

 ized, and now the whole association bargains as one man, they get from 

 42 cents to 45 cents for their butterfat. In this particular instance it 

 was their organization that gained for them a better market price for 

 their product. I know of other communities where they have organized 

 for the purpose of marketing their cream and where before organizing 

 they received from 6 cents to 8 cents below Elgin for their butterfat, 

 after they were organized they received from 2 cents to 3 cents below 

 Elgin, or an increase of 4 cents to 5 cents per pound butterfat. Other 

 communities have organized creamery associations and they have increased 

 their net returns for their butterfat from 1 cent to 4 cents per pound. 



The organization of cooperative cream marketing associations is a 

 rather commendable plan of cream marketing. It is essentially a form 

 of cooperative marketing, where the cream producers organize a local 

 cream marketing association, pool their cream, operate their own receiving 

 station and sell their cream to the highest bidder. 



The advantages of such a system are: 



1. — The testing and selling of the cream is done under the super- 

 vision of the officers of the local cream marketing association. 



2. — Competition in the bidding for the cream obtains a higher market 

 price for cream or a larger commission to the station operator. 



3. — The quality of the cream can be regulated by the local associa- 

 tion by the establishment of grades and classification of cream whereby 

 a higher price is paid for the higher grade or better quality of cream. 



The conditions necessary for the establishment of a cooperative cream 

 marketing system may be enumerated as follows: 



1. — A willingness and desire on the part of a majority of the cream 

 producers in a community to cooperate in organizing a cream marketing 

 association. 



2. — The perfecting of a local marketing association by the adoption 

 of articles of organization and bylaws, and the election of officers and 

 a business manager. 



3. — The equipment of a cream receiving station with Babcock tester, 

 scales, wash sink, etc. 



4. — The contracting for the sale of cream received by the association 

 on the basis of some butter market quotation. 



5. — The adoption of rules and regulations for the receiving, testing 

 and grading of all cream marketed through the association with a scale 

 of differential prices for the different grades. 



