The development of the dairy products industry in Minnesota (Google eBook)

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s.n., 1914 - Technology & Engineering - 61 pages
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Page 58 - The investigations show that the cooperative creamery yields the largest returns to the farmer for his butterfat. The individual and combination creameries, usually being located in close competition with the cooperative creameries, pay very nearly as much. The centralizers, where they have gained a monopoly, pay as little as the farmer will accept. Reports for July, 1907, show that in Kansas and Nebraska, where the monopoly appears to be complete, the farmers received only 17 to 18 cents a pound...
Page 58 - ... conditions. The loss to Kansas farmers during the last year on account of the low prices alone is estimated at $1,000,000. If Kansas had made 50,000,000 pounds of butter, as it should, instead of 17,000,000, the income to the State would have been, on the same basis of valuation, at least $12,000,000 greater than it is for the present year, and there would have been no less wheat, corn, alfalfa, beef, pork, or any other crop raised. The reason why Kansas is not on a par with Minnesota, Iowa,...
Page 58 - This difference is due partly to the methods of the socalled " centralizers " and partly to the inferior quality of the butter produced by those concerns because the cream is collected over a wide territory and much of it is received in a stale condition. That a very large percentage of the butter found in the market is below grade, selling for less than market prices for fine butter, and that the farmers in a very large area of butter-producing territory receive much less than a fair price for their...
Page 59 - ... churning the poorer the quality of the butter. Shipping cream by railroad except for very short distances is detrimental to the quality of the butter. The centralizers, on account of receiving cream from long distances, are unable to turn out as high-grade product as the local concerns that use fresher cream, but they are usually managed so as to get every possible cent of revenue from their material. They use the most improved methods of manufacture, get a maximum overrun, and prevent loss in...
Page 58 - ... railroads for hauling empty cars was 15 cents per car mile. The system of killing the small creameries has been carried on to the fullest extent in southern Iowa, Missouri, Kansas, and Nebraska. Taking Kansas as an illustration, it is found that the number of creameries declined from 133 in 1900 to 67 in 1905, while in Minnesota in the same period there was an increase from 582 to 905. The decrease in Kansas is attributed to dissatisfaction and distrust on the part of the farmer with the central...
Page 59 - By no means do all of the small creameries make fancy butter, however. Some of them have doubtless succumbed largely because of losses which might have been prevented by better methods. There can be no doubt that the tendency of the centralizing system is bad for both the farmer and the public. The effect is to exact high prices from the consumer and to pay low prices to the farmer, the profits going to the large operators who control the situation. The small local cooperative creameries should be...
Page 58 - ... Nebraska. Taking Kansas as an illustration, it is found that the number of creameries declined from 133 in 1900 to 67 in 1905, while in Minnesota in the same period there was an increase from 582 to 905. The decrease in Kansas is attributed to dissatisfaction and distrust on the part of the farmer with the central creamery, to the low prices paid, the poor quality of the butter, the killing of the small creameries, and the loss of all immediate contact between the farmer and the owner of the...
Page 58 - A special investigation has been made of economic and commercial conditions in the creamery business and information has been secured showing that there is practically a monopoly of this industry in some sections, while in others the business is largely conducted on a cooperative basis or there is fair competition, the result being that under the latter conditions the farmers are receiving from 6 to 8 cents a pound more for their butter fat than in territory controlled by the monopoly. This difference...
Page 58 - ... concerns, because the cream is collected over a wide territory and much of it is received in a stale condition. "That a very large percentage of the butter found in the market is below grade, selling for less than market prices for fine butter, and that the farmers in a very large area of. butter-producing territory receive much less than a fair price for their product, are both matters of record. That the losses from these sources amount to millions of dollars annually to the farmers of the...
Page 58 - ... earnings for hauling cream were but 13 cents per car mile, while the settling basis between railroads for hauling empty cars was 15 cents per car mile. The system of killing the small creameries has been carried on to the fullest extent in southern Iowa, Missouri, Kansas, and Nebraska. Taking Kansas as an illustration, it is found that the number of creameries declined from 133 in 1900 to 67 in 1905, while in Minnesota in the same period there was an increase from 582 to 905. The decrease in...

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