

COOPERATIVE MILK-DISTRIBUTING PLANTS. ALD 
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, 
aiter 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 
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