2 BULLETIN 1095, U. S. DEPARTMENT OF AGRICULTURE. 
sale of milk to city dealers. To distribute cooperatively a consider-. 
able proportion of the milk supply of a large city would require an |' 
organization with a large capital. The problem of operating large 
milk-distributing plants is more complex in large cities than in small 
cities where the producers are located in the immediate vicinity oft} 
the city in which the plant is established. | 
ESTABLISHING A COOPERATIVE MILK PLANT. 
The advisability of establishing a cooperative milk-distributing | 
plant can not be determined without first having obtained complete — 
information as to local conditions. To obtain this information a 
careful survey of the local situation should be made. This survey 
should include such important factors as the present marketing 
methods and conditions, existing marketing facilities, the direct bene- _ 
fits of a cooperative plant to producers, the attitude of the producers, 
the support likely to be given the enterprise, the volume of business | 
available, means of financing the venture, and such other information 
as will ne helpful in determining the possibilities of success in operat- | 
ing a cooperative plant. 
aS actual need for a cooperative milk-distributing plant should — 
exist among the producers. A desire and demand for a cooperative | 
plant should be manifested by the producers themselves. Unless | 
the sentiment of the producers is strongly in favor of a cooperative | 
plant, and they feel that a plant is an absolute necessity for the solu- | 
tion of their problems, adequate financial support and sufficient vol- | 
ume of business for successful operation may not be obtained later 
when needed. Active leadership of a sane and sound character must 
exist somewhere among the producers, for it will be required in the | 
administration of the business later by the board of directors, 
ESSENTIALS FOR SUCCESS. 
A first essential for success in a cooperative plant is sufficient vol- 
ume of business to make economical operation possible. The actual 
supply of milk pledged for delivery to the cooperative plant must be 
given careful consideration. If only a small part of the milk pro- 
duced in the locality is pledged, it may be impossible to operate the 
plant efficiently and economically. Specific figures can not well be 
given, but it has usually been found that unless at least two-thirds of 
the milk marketed locally is pledged to the organization, it is ad- 
visable to defer the establishment of a cooperative plant until the 
necessary support has been obtained. 
Efficient management is essential in any business. Especially is 
this true in cooperative milk plants, because many technical and prac- 
tical problems must be handled properly to obtain best results. Effi- 
cient business methods are essential to good management and an ade- 


