Montana labor news., 1949-01-27
OIEO AND THE BUTTER MARKET

Congress this month. We viii not venture
a prediction on the outcome OF the issue at
the hands of the new House and Senate but we
do not entertain any great hope that the status
quo will be retained. Furthermore. should the new
legislative bodies take it upon themselves to re-
move all restrictions on the sale Of oleomargerine
other than the usual sanitary and quality regula-
tons that govern food products, we do not feel
it would be a complete calamity
Over a period of time we have been coming TO
the conclusion that in diverting its energies to pro-
tect butter from cleo competition through iega'
fences. iustifiable though they may be, the butter
industry and the dairy industry as a whole is do
ing itself more harm than good.
The reason that butter is manufactured in the
United States or anywhere else, excepting pos
s;bly the Soviet Union. is because il is a commod-
itv that commands a wide market and will return
the manufacturer a profit for his labors- Butter
is not made because people like to make butter
for the sake of making butter.
True. it is sometimes made at little or no i'm
mediate profit but as a means OF using surplus
milk that otherwise would be animal food or a
total loss. But fundamently butter IS manuiac-
tured because it is a money-maker. II our reason
inc is correct, then it follows that above all else
butter industry must have a market IN which to
DISPOSE of its product. To lose that market is to
lose the industry.
There are few persons who would quarrel with
the statement that in the field Of marketing pro-
ducts on a large scale, in the realm ot'merchan-
dising along Paul Bunyan lines. American sales
men lead the world. The significant point in this
epic Of selling is the fact that most Of the markets
were created. Somebody did a Job Of selling.
Somebody was out ringing doorbolls hanging up
posters, talking over radios, buying space in the
newspapers and magazines Somebody was de-
livering himself Of a sales story.
The second significanl Characteristic OF the
American sales picture is that there is hardly a
single product on the market that enjoys OF sui
fers from a monopoly. Competition is the I'M
Welding taskmaster that makes people 80 out
and sell.
Oleo has come a lone way SINCE the inst World
War. We would be guilty OF measurable FOLLY IT
we failed to realize that Truth. One Of the surest
tecbnioues of taking a licking is to underestimate
the caliber of the opposition. Oleo is the comPe-
tition as far as butter is concerned.
All of the arguments from the dairy industry
reeardins butter boil down to the thesis that oleo'
when colored yellow by artificial means, oilers
unfair competition. A spread must have eye APP
pei as well as taste appeal and the yellow ira
ditionally associated with butter, IS a major re
ouirement of a fat spread if it is to be successful
in the American market.
In butter the yellow color is a natural charae
ter;st;c. in oleo it is artificial. On the basis Of TIM
49, 49,. x.-lo ont a Dlapcable cas-
for the yellow color as It's own particular Preros
alive. But even though the courts upheld the al
sument it would be an empty victory, because
would not sell one single pound OF butter Cnt
it is possible to prohibit the sale and the servin
of oleo colored in imitation Of butter people WI
buv whichever product they have been convince
is the best buy.
Ever since oleo came on the market it has bee
subject to a tax program designed to prevent Il
sale in imitation Of butter. Yet in spite OF thu
program cleo has edged its way into the iel
until today it commands the largest market in /
history.
There are three main developements that a
count for the rise in oleo consumption Inc III
is the improvement in the quality and mercha'
disins of cleo. The second is the difference
price between butter and cleo. And the third
the fact that the dairy industry has been wastlr
its energies trying to restrict competition by leg
lative means, when the real avenue OF attack "
and still is to beat the living daylights out OF I
competition by superior merchandising.
Here is an episode which illustrates what
arc driving at A friend Of ours. the chairman
the Department Of Business Administration at
eastern University buys four pounds Of uneolor
oleo each week. We asked him why he bong