20 BULLETIN 1095, U. S. DEPARTMENT OF AGRICULTURE. 
PROBLEMS IN OPERATING MILK-DISTRIBUTING PLANTS. 
The foregoing statement regarding the duties and responsibilities 
of a milk-plant manager indicates that he may have many problems 
with which to deal. For the purpose of separate discussion of the 
more important phases of each, they will be considered under the fol- 
lowing classification : 
(1) The securing of an adequate and proper milk supply. 
(2) Efficient and economical plant operation. 
(3) Sales policies and methods of market distribution. 
As consideration is given to each of these, it is well to keep in mind 
that the manager is responsible to the board of directors, and he 
should cooperate with it on all matters involving business policies and 
seek to obtain counsel and advice in formulating them. 
THE SECURING OF AN ADEQUATE AND PROPER MILK SUPPLY. 
Three problems arise in every milk plant, in obtaining a milk sup- 
ply. These are (1) source of an adequate supply, (2) maintaining 
proper quality in the supplies received, and (8) determining upon an 
operating policy which largely eliminates financial risks and losses. 
In cooperative plants, the larger part of the supply is usually re- 
ceived from the patron members, but usually not to the entire exclu- 
sion of the product of nonmembers. A closed organization against 
nonmembers is often not desirable, even though patron members may 
be able to furnish an adequate supply. By providing a satisfactory 
market for dairy products, the establishing of competing plants ts 
discouraged and production is encouraged. In practically every 
plant it is necessary to operate a by-products department, in which 
the surplus supplies may be manufactured into butter, cottage cheese, 
and other products. Although by-products may be sold ordinarily 
at lower net prices and on narrower margins than market milk, the 
overhead costs of the plant may be reduced by increasing the volume 
of product handled. Also, the handling of a surplus allows op- 
portunity for expansion of sales in the milk department. 
To obtain adequate supphes of milk of highest quality, country 
collecting routes are often employed in reaching patrons in neighbor- 
ing sections, and receiving and cooling stations are operated at points 
from which delivery is made by rail or by motor truck. Certain ad- 
vantages are often obtained by the operation of collecting routes, for 
the milk is picked up at the farm and needless duplication in delivery 
by individual producers is eliminated. 
The ordinary charge for collecting, which includes the return of 
empty cans, may range from 1 to 5 cents per gallon, depending upon 
local conditions. 


