The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1915-03-20
COOPERATION THAT IS BAD
Demanding Cash Payment for Cream
When II ls Delivered to Cream
cry Is Not Good Practice.

Every once in a while we find a
farmers cooperative creamery that
pays for each can of cream as it is
brought in and on the ground that it is
necessary on account of competition.
A farmer who requires cash for his
cream at cooperative creamery does
not understand the principle of coop
Grafton and is unfortunate in his de-
mands, says a writer in Farm, Stock
and Home. When butter was made
on the farms and sold at the local
store no cash was received for it. The
storekeeper offered in trade what he
estimated that he could get out Of it
with a fair margin for risk. 1t was
always in trade, however, and for
goods upon which a considerable mar
gin of profit was figured. The store
keeper had to do this, as there was a
risk in the business. He did not al
ways know what the butter would
bring when shipped out
In cooperation the farmers bring
their cream to the creamery where it
is churned into butter and then sold
at the market price. When the pro-
ceeds of the sale are RENTED to the
creamery, the cost of manufacture,
shipping and commission is deducted
and the balance is divided among the
patrons in proportion to the amount
of butterfat delivered by each patron.
In this way there is no risk fo- anyone
and the farmer gets just hat his but
terfat is worth on the market the day
1t Is sold, less the cost of manufacture.
This is all any just man should ask
and 1t is only through cooperation
that the farmer can get the full value
OF his produce above the cost of man.
ufacture. The farmer who comes in
and demands cash for his cream is
asking for something a cooperative
creamery has not got If 1t lives up to
Its constitution. The cream must be
churned and the butter sold and re-
nittance made to the creamery before
1t can be paid for. When cash is paid,
the association must borrow money to
do it with or it must keep back a part
OF the former sales as a reserve fund
to pay for cream before it is churned
and sold; and this is not cooperation.
VIII IN cream is paid for in cash 1t is
speculation. The market price Of but
ter varies from day to day and no
creamery manager can tell what but
ter will bring, not even a day in ad-
Vance u,hn aclyc enr
a cooperative creamery is asking his
neighbors who are associated in the
creamery to take the risk of the mar
ket. A cooperative creamery can take
no risk when it pays everything to the
farmers over the cost of manufacture.
Companies that buy for cash take a
sufficient margin to insure against
market charges. They have to, and it
is only just that they should. but the
farmer pays for the insurance. Co.
operation is for the purpose of elimi-
mating this risk and also to eliminate
unnecessary expenses between the pro-
Queer and the consumer.
Cash payment for every can of
cream makes extra work and expense
for the creamery association. When
there are many patrons it practically
requires the work of bookkeeper.
The oldest and most successful cream
cries in the state pay but once a
month; and among them are cream
cries that pay the highest prices that
are paid for butterfat in the state.
Many creameries pay the LIST and, 18th
Of the month, and this method is all
right and it is frequent enough. It
enables the creamery to pay what the
butter brings and any reasonable man
should be satisfied with this. 1t is
only in this way that a creamery can
be truly cooperative.