NEW YORK MILK

Hawera Star, Volume XLVIII, 7 January 1925, Page 2

NEW YORK MILK

PUODITCEHS POOL SUPPLY. Some idea of the complicated problem of supplying a big city with its milk may be gained by an examination of the producers’ pooling system in operation in New York. As far back as 1907 the Dairymen's League was formed in New Jersey, probably in consequence of a general grievance among the members that the prices for milk then prevailing did not afford a fair return for the labour and for the capital invested. Producers became members by purchasing stock in the company at the rate of about 1/per cow, and they signed contracts appointing it their selling agent upon a fixed commission of h per 1001 b of milk. The organisation grew very slowly, however, and it was not until 1910 when there were 13,000 stockholders that the league started to sell its milk collectively. It had meanwhile been able to improve iharketing conditions for its members, and compelled the distributors to bargain with its officers, month by month, as to the selling price of milk. The war brought about an immense expansion in the league’s operations. By 1921 the number of stockholders had risen to over 99,000. A great war export in all milk products had arisen, and so great was the demand for milk that it commanded almost as high a place lor manufacturing purposes as in the fluid milk market. It was thus found easy to sell the milk at a flat price, and for two or three years the surplus milk problem had practically disappeared. With the end' of the. war, however, the export business in milk products suddenly ceased, and the “consequent great drop in milk consumption brought about a precarious situation in the dairying industry. A scheme foxpooling the milk of all members was worked out by the organisers of the league, ,so that it could sell the milk for a. variety of uses and at a variety of prices as the market might demand, pxitting all the proceeds into one fund, which should be divided on an’ equal basis axnong the members. To give effect to this scheme, a new organisation called, the Daiiymen’s League Co-operative Association, was formed. -Contracts were entered into with the producers, who members of the old league, and penalties were stipulated in eases were the conditions of the cointract were not complied with. In -April, 1922, the association handled about 40 per cent, of the milk produced in New York city, and about 21 per cent, of the milk produced in the six -States’ in which it- operated. According to the journal, of the Ministry of Agricultui-e, the association’s gross sales in July, 1923, amounted to over a million -and a half sterling. The fluid milk sold to dealers was worth £1,059,766, while the. sales from plants operated by the association amounted to £505,643. This latter total included fluid and skim milk £257,815, cream £32,534, ice cream £37,263, and-various forms of condensed milk, etc. As showing liow little the surplus was used to compete with the butter and cheese industry, only £13,180 worth, of milk was made into hotter and £14,879 worth info cheese.

For the same month the pool price per 1001 b of milk was equal to 9/53. Of this about 3Jd. was used in administration, depreciation, advertising, etc., hauling chax-ges cost about 1-Jd. while’ about was ei-edited to a special capital fund fo repay loans for building, tec. For this deduction the producer received at the end of the fiscal year a certificate of indebtedness bearing 6 per cent.-interest, and maturing in five years. The balance was liaid in cash to the producer, and amounted to 8/s§a. or abo-pt lid. per gallon (apart from his share in the capital fund already mentioned, and equal to Jd. per gallon). The turnover in this month was more than 33,000,000 gallons of milk, and the scheme lias every appearance of being a triumph of organisation.