Show FARM OPERATIVE CO-OPERATIVE TIVE SELLING By GLEN G. G HAYES D 1924 Western Newspaper Union Launching National Dairy Sales Service A A APRIL 0 9 ID 1023 3 V will l go down In the 7 annals of the dairymen of Amera Amer- Amer 1 lea dC as a historic date In the history ofa of ofIne dairy a r marketIng Ine- Ine That day 30 representatives p pr from r m the tle leading cooperative opera co-opera- tive ve dairy Of jf jfe the he e n United States met In a Chicago h hotel otel and unanimously agreed to adopt the national dairy sales sale agency plan For three y years ars dairy dalry marketing men en i had been working wonting toward a ana ana- na national national na- na tonal plan for the operative co distrIbution distribution distri distrI- of dairy products In In 1020 1920 0 the American Farm Bur Bureau au federation ha had turned the task over to the farmers farmers' farmers farm farm- ers ers' marketing marketing- committee of eleven The committee knew that the next step forward was the establishing of a n national sales agency with branches In al alt alj the big lg cities But the committee couldn't agree on Just how to do It They didn't think as a committee working for the good goodof of the dairy Industry as a whole they thought In the terms terms of how s such ch a n aplan aplan plan would affect this that or the theother theother theother other local ocal group which they ent d. d It was vas finally agreed to call callIn callin In the l leaders aders of all the dairy marketing marketing marketing mar mar- organizations of the country for fora a table round talk to see what they wanted to d do about It That hat was was getting getting getting get get- ting down to business submitting a referendum to the country as It were The m meeting was called at nt Milwaukee Milwaukee kee kee WIs The fifty operative co-operative leaders leaders leaders lead lead- ers present represented the big cooperative cooperative co co- operative cheese butter condensed and fluid milk Interests Interest of the country It didn't take them long to decide what they wanted It remained for J. J T. T Williams pr president of the Milk Producers Producers' Marketing company company of Chicago ago to to- present a definite plan of action In less than four hours after atter the meeting meeting came to order or order order or or- der It was unanimously agreed toe to e establish a national sales agency sere sere- servIce service ice for the marketing of condensed milk butter an and ch cheese ese and sweet cream cream t the le products by-products of ot the cow cow- milkIng business A committee of nine was as then chosen losen to work out a plan of off organization which was to be presented present present- ed t to delegates from the various cooperative co cooperative co- co operative associations for approval and adoption Forced to Federate Into Units It was outlined by the various leaders leaders lead lea ers present that It takes more than a a local p plant lant to establish a a demand deman l f for r dairy products product anti for that reason the local plants of all the Important dairy d districts ha had been forced to federate federate fed fed- i erate Into units of one kind or another I The tendency was to form these I units Into state state associations which are doing more In finding and est establishing establishing b- b lishing a a market than the local can canever canever ever hope to do The local agency Is without means means' means means' for advertising extensively ly enough The national agency which had bad been proposed should be able to handle the advertising and selling for all the regional regional regional re re- re- re gional associations associations' ms' ms and reduce this expense expense to a minimum minimum All the speakers were ngi ag agreed eed e d as to the economic waste aste of permitting their best product to be advertised and marketed marketed marketed mar mar- under the brand of some dealer or distributor who thus gained grained the advantage ad ad- advantage advantage vantage of the good reputation for or a superior pro product which should rightfully rightfully right right- tull fully b belong long to the operative co-operative organIzatIon organization organization organ organ- 3 which manufactured the prod prod- With a central sales agency disposing disposing disposing dis dis- dis- dis posing of this product under a a co oper cooperative cooperative cooperative oper brand the operatives co-operatives and In turn their farmer members ers would be bethe bethe the ones t to benefit by this this' tIne fine tion The effect of such a united sales effo effort t would also also tend to stabilize stabilize stab stab- prices and pi prevent event ruinous speculation speculation speculation spec spec- such su-ch as a's as has lIe been n repeatedly practiced in the cheese Industry The plan by lIy President ent Williams of ot committee committee com com- Chicago for the newly appointed of nine to build bund a 11 national dairy i sales Bales service was as follows Its Purpose To flo act oct as general sales agent for tor all operatives to who lio are members thereof In the sale of manufactured products for export and I In the large competitive markets of America and and maintain maintain maintain main main- foreign countries To have ha tain a n general centrally located and ond to establish branches or agencies as fast rust as ns the growth of the business warranted In all ull the Je principal cities of tills this country am and Important market centers center In foreign for the sale ale of the nhan manufactured d dairy lr products of Its members I In addition to landl handling bundling ng manufactured ture dairy dahy products there would be betimes betimes betimes times when the central organization could assist its mein ers to dispose of milk and und sweet cream to some smile of the cities titles In the South und and elsewhere for forIc forIce forice where s such uch cities purposes Ic Ice cream were not s served T by member of the central organization member Further where c co operative associations In a n period of shortage needed extra milk or cream to carry carryon I on their business this central nation could assist in securing It fromI from fiora In I some other co operative association which another part of the country countr furnish It might be lie In a II a position to be of Further lurther this company might considerable assistance co to Independent concerns which are bu buying milk for forI manufacturing purposes through a cooperative cooperative cooperative co co- co- co I operative member of this com company puny whist which concerns at time c might find themselves accumulating a n burdensome accumulation of ot manufactured dairy pro products ts This This' central organization organization by assisting them In manufacturing I those products would thereby be benefiting benefiting bene bene- fiting the farmer producers who are selling their milk operatively co-operatively to such big concerns President Williams Williams' plan provided the creation and maintenance of a department department department de de- for Increasing the consumption consumption tion of dairy products and popularizing ing standard brands manufactured by member associations It also provided for the ga gathering of market Information information tion and statistics relative to the condItions conditions conditions con con- of the dairy products market throughout the world orld and statistics showing dairy products In storage and the probable trend of prices This department of publicity and market Information It was pointed out out would be of greatest g value and assistance In preventing gluts of dIfferent different different dif dIf- ferent dairy commodities at markets th that t were were already overcrowded Benefits to Be Bo Derived The benefits to be derived ed by the cooperative co co- operative members of a company of this kind were listed as follows 1 This This' central selling organization would be In a position to gather the necessary Information keep Its m mem mem members mbel's m- m hers bers fully posted as to the probable demand month by month for the different different different differ differ- ent kinds kInds' of manufactured dairy products products products prod prod- and would be able to greatly assist assist assist as as- In stabilizing markets for such dalr dairy p products 2 Tills This central selling organization once under good headway should b beable be beable able to explore and open up new markets markets markets mar mar- especially In foreign countries an and In fact In many parts of our own country that would materially Increase the actual consumption of ot dairy products prod prod- 3 3 The he organization should be able In competitive markets to greatly reduce reduce reduce re re- re- re duce the toe expense of selling products of ot Its members because Instead of many members havIn having their own direct representatives representatives rep rep- or brokers ana a consequent consequent conse conse- quent expense of the maintenance of these selling forces In competitive markets markets markets mar mar- one bran branch 1 or 01 selling agency gency In each competitive market would be enabled enabled enabled en en- t to td handle the business for all membern at ata a very large saving ns as corn com compa compared com pa pared ed with present I methods e hods 4 It Is a It generally gen acknowledged fact that In far to too n many any cases brokers brokers brokers brok brok- ers s supposed to be representing the Interests of the sellers of qt dairy products products products prod prod- In compe competitive Uve markets ar are oft oft- times prone to In reality be be Inclined to regard the interests Interests of t the ie buyers buyers first although U they ei are drawing their heir commission or brokers' brokers charges from the seller In fact It Is Is' too much to say that the brokerage s system stem as os conducted conducted conducted con con- ducted today In the sales o of dairy products products products prod prod- In large competitive markets works to the disadvantage of ot the s sellers sellers sell sell- ll- ll ers of dairy iry products to the gain of ot the ebu bu buyers ers I 5 An organization of oi this kind kind could standardize and popularize the br brands It was handling In the name of the h producing company Itself Instead of ofas ofas as Is now too too often done popularIzing popularizing popularizing popular popular- izing a trademark or brand of some som Independent dealers or Jobbers who do donot donot donot not themselves manufacture any dairy products yet pet because of the f feet fact ct that they they have standardized and popularized popularized popular popular- r- r Ize a trade name are ab able e to reap unfair unfair un un- un- un fair frill profits at the expense expense of ot the producer producer producer pro pro- ducer by forcing down the price paid paI to the p producers for their products and then simply by having haYing them packed In packages under the buyers buyer's labels very greatly an ad advancing Ing the price for which the product was sold to the actual l con con- sumer G. G An organization of this kind could be of great assistance to Its members where necessary In assisting them in In financing and holding products and marketing them In an orderly man man- ner 7 It would tend to promote promote harmony and a working together among different different different differ differ- ent members manufacturing dairy products would prevent a l pitting of one against the other misrepresentation tl tion n of buyers or their agents in attempting attempting attempting at at- tempting to force torce flown down l wn the price of one operative co-operative company b by claiming that another operative co c company had hud offered offered them the same quality gf goods at a much less price than they were asking and In this manner stirring stirring stirring stir stir- ring up up strife doubt and unbelief jealousy jealousy jealousy jeal jeal- and suspicion n between the different dif dlf- dlf ferent operative co companies from a a selling standpoint Plan Is Mapped Out The committee of ot nine called In Aaron co operative cooperative marketing attorney to help work out out the pro pro- After Arter more than four months of work worl the tIle plan was ready for the approval of ot the operative co-operative Later representatives of the cooperative cooperative co co- operative c d dairy a It marl marketing groups grO of ot seven L Western states met with the commIttee of nine In Chicago to decide the fate tate of the national sales plan It didn't take toke them Ion long to decide de de- cide The They accepted it complete te Justas Just os as the committee of nine with the heIr help of Aa Aaron ron had drawn it Up Upon n its adoption the committee of nine was Increased to eleven ele and assigned assigned as as- signed the specific duty of organizing or the national agency Five months later It as read ready to do business The faim turm bureau units solidly or or- I In almost every ery state and county In the Union are used as ris a basis basis basis' of oC organization Or Organization campaigns are Ufe made matle by states When enough h contracts from associations and federations have been obtained to Insure a u profitable volume of ot business the committee will create the new central cen cen- trill sales saies agency in ha Chicago Campaign Cam Com Campaign pahn expenses will wn be paid by the federations federation's companies or associations and prorated according to the relative total value of or the products d by caca caci In one calendar year wr r I 0 t |