Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-12-15
Annual Review Of Utah's
Growing Dairy Business.

- VERY year has a surprise In the
= creamery business which Is
brought about by new conditions
confronting the creamerymen, The
features of the past year have been as
follows:
Wide fuctuntlon In prices.
Higher cost Of production.
Large increase In sales,
Keener competition between cream
erymen.
The market price OF creamery butter
has nuctuated from lSc to sic per
pound. The lowest price OF lSc being
when the make Of butter was the larg-
est during the months OF June and July.
while the higher price was reached In
the latter part Of November and De-
cefnber. Competition, production and
demand are three factors responsible
for the wide fuctuation. During the
spring months, when pasturage Is at It's
best and milk can be produced at tho
least cost, production Is at It's greatest
and consequently there Is a surplus to
dispose OF. Keener competition In buy
Ing the product also results In keener
competition IN selling the product es-
peclally when there Is surplus and
as II Ittull INC lildIhtt 10 loiNtu uuN
During the fall months when tho cost
OF production Is higher there Is less
milk produced. which causes n shortage
OF product and again competition has
an influence on prices. The demand OF
course is very large factor as much
depends on II whether there Is sur
plus
The higher cost Of production this
year is due TO the high cost of hay and
grain. Many dalrymen thought they
would be better off TO sell their cows
and their hay and grain while prices
for feed were 80 high. but owing to tho
high prices that have been realized for
butterfat during the fall months, even
at the higher cost of production, there
has been good opportunity for profit
10 the creameryman. To succeed IN the
dairy business Il Is necessary for the
dairyman to take the bitter with the
sweet, or In other words stick To the
business even II prices go below the
cost OF production for a short time. as
they VIII surely advance 10 a price
whore n satisfactory profit can be
made. In the history OF the dairy busl-
ness there has not been a better outlook
for profit than the future promises.
The cost OF production In this state Is as
low as any place IN the United States
while every indication points 10 good
prices for the future.
The large increase in sales this year
has been due principally to the increase
IN population and to the new markets
that have become accessible 10 us al
though there has been an apparent in
crease in consumption per capita ana
prices are always influenced more or
less by coast and eastern markets.
When butter IS shipped out Of the state.
which happens only when there is a
surplus the market is regulated more or
less hy tho market 10 which this butter
Is shipped. II Will readily be seen how
competition affects prices When the
creamerymen have a surplus OF butter
Il Is natural for them 10 reduce prlces
IN order to move II; when the supply Ia
short and the creamerymen do not have
enough butter to supply their trade Il
IL also natural for them to increase
prices In order to get more product.
TIL VIII also have more or less lnfu-
ence IN making the market fiuctuate.
Keener competition this year has been
caused by the aggressive policy OF the