, 1924-04-09

In 1856 a creamery was started
IN orange county, New York, and in
less than ten months cooperative
creameries were in operation in sew
eral neighboring counties. Each was
Independent of the other; each fixed
its own standards and sold its own
product. This was the plan the Danes
copied in 1882. But they improved
upon it by f~ederating to manufacture
a standard product.
In August, 1923, there were 1910
cooperative creameries in the United
States and 63S of them were in the
state of Minnesota. These cream
cries are simply manufacturing plants
for the making of butter. Most of
them are n%onprofit, nonstock organ
izations. After the butter is sold and
the expense of operation is deducted,
the proceeds are paid to the producers
in proportion to the amount of cream
delivered.
The first state in the Union to at
tempt the improvement of the butter
market was Minnesota. In 1911 the
Minnesota Cooperative Diaries asso-
citation was established. This was Il
commission house at New York that
was started through the fear tina the
creameries would be driven off the
market by centralizers. One hundred
and thirty cooperative creameries took
stock in the company. 1t buys up but
ter at the regular price INT resells it
in the eastern market. The profits are
divided on the patronage dividend
basis among the creameries and this
is redivided on the same basis among
the members of the separate cream
cries.
In 1921 the 345 Minnesota cream
cries came together for closer CO.
operation and formed a state group,
h Minnesota Cooperative Cream
cries association, Inc. They divided
the state into 10 districts and each
district employed II field man or in
spector whose chief duty is to improve
the quality of the butter made in the
creameries of his unit and to work
toward its Standardization. A small
duty is charged on each pound of but
ter produced during the year which
pays the overhead expenses and the
handling costs.
In Other Sections.
Minnesota Is not the only state that
has established a centralized butter
market. The Wisconsin Cooperative
Creamery association is organized on
the same plan as the Minnesota cream
cries. In Iowa the Creamery Secre-
taries' association has been in opera
ton for many years. On the Pacific
Coast the Challenge Cream and But
ter association, at Tulare, has been
marketing cream and butter since 1911.
Where there are no cooperative
centralizers the farmers have organ-
lied cooperative shipping associa-
lions. Sometimes these are organized
through the state farm bureau; some
times through the Grange. Again the
producers are affiliated with a produce
shipping association. These loose
knit organizations are responsible for
slightly better cream prices, but they
are not to be classed as real co-opera-
tive organizations. They are not the
first necessary steps toward perma-
lent Organization-merely a means to
an end. An effective system of CO.
operative manufacture of these two
products has been perfected but the
marketing end is still in its infancy.
Before the marketing of manufactured
dairy products "a be perfected, there
must be a general standardization
and improvement of the product.
Already another step has beer taken
toward this goal-co-operative mar
keting associations have organized to
sell through a national sales agency.