A Creameryman Confesses: 'Our Business Conditions Are Rotten'

Editor of the Ranch: I have read with great interest the communication of your subscriber of Redmond, Wash., on page 3 of your last issue. First I thought it useless to write anything on that subject, but thinking the matter over more carefully, I decided to write the truth and nothing but the truth about the conditions of creameries in our state. We all know that truth hurts the most, and we also know that bare facts are carefully withheld from the public—and it is still more wonderful how some people styling themselves business men do not dare or are unable to face bare facts.

I will endeavor to analyze the true condition of the creameries and dairies in this state, regardless of whether I hurt the creamery manager (I am one myself) or the dairy farmer. Let me say right here: the business conditions of many of our creameries are rotten, and so are many of our dairies.

To remedy any evil we must know first the cause. The main factor of these horrible conditions is simply competition—not honest competition, that is called the life of trade, but a reckless, price-cutting competition, resulting either in bankruptcy or dishonesty.

Let me illustrate. One of our patrons entered my office one day, telling me that the new creamery which has just started up is offering three and a half cents below Seattle, allowing 11 per cent overrun, and agrees to haul his cream. He is thinking of quitting us, because a new concern just starting up and making butter for less money ought to have the support of all dairymen, and further, we were taking too much profit.

Now, here is our conversation:

"Mr. Smith, do you admit that every business man must have a legitimate profit?"

"Yes," answered Mr. Smith.

"Mr. Smith, do you admit that a legitimate profit creates satisfaction, a good feeling on both sides, that it creates harmony, stimulates business, and is the best sign of a prosperous community?"

"Yes," replied Mr. Smith.

"Mr. Smith, do you know that if a business man has not a legitimate profit, he will go bankrupt or will employ dishonest means of getting money?"

"I believe so," said Mr. Smith.

"Mr. Smith, do you know how much it costs to gather one pound of butter fat, make it into butter, ship and sell it?"

"No, I don't."

"Then, Mr. Smith, your argument about us taking too much profit is erroneous. To criticise you must first master your subject and know every detail. A year ago we had a creamery four miles from here which was doing the same thing, and after a month's trial the farmers found out that they were cheated in their test. While they thought they were charged three and a half cents, in reality they paid four and a half and five cents."

Let me cite another instance which will show the ignorance of the farmer and the acuteness of the creameryman. The man in charge of a new creamery visited one of my patrons and solicited his cream in the following language: "Mr. Thomas, I want your trade. I pay you at least half a cent more than the Rockwood creamery, which will make you $15 per month, and I give you a good, high test."

Mr. Thomas presented his case in my office with the fury of a cheated, robbed, ill-treated patron, especially as he heard the new creamery was paying 29 cents—Seattle being at that time 30 cents—while we were paying only 26 and a half.

"Mr. Thomas," I said, "here is your monthly statement showing you had 250 pounds of butter. By paying you half a cent more, it would increase your check just $1.25 and not $15.00. As to the price they are paying, you were not told that you do not get an overrun. Now as to a good high test, let me tell you, Mr. Thomas, you get from us an honest test, no more and no less. A man approaching you with the assurance of a high test is dishonest. A creamery can pay you only for what it gets. If a creamery pays you more, it must steal from someone in order to come out even."

Now let us characterize the present conditions of our creamery and dairy industry.

1. The smooth-tongued creameryman misuses—to employ a mild term—the ignorance of the farmer. He misrepresents facts; he does not get the trade by merit, but by smooth talk and a lot of promises. To tell a farmer he gets rich by patronizing a creamery is a lie. He will make money provided he has good cows, takes good care of them, knows how and what to feed, and receives honest treatment from the creamery.

There has never been a brighter prospect for dairying than now, and a well-managed creamery will be a bank to the farmers.

2. The conditions of some of our farms are a pity. Who is in some way to blame for it? The Washington creameryman. He does very little for improvement; he does not call the farmers' attention to his dirty cows, dirty cans and greasy hand separator. Instead of educating the patrons to take better care of cows and better care of the cream, to read and study up better methods in dairying, the farmer gets careless, because he knows if one creamery does not take his cream the other will. In other words, the creamery is at the mercy of the farmer, and unfortunately the bright, intelligent farmer does not receive enough reward for his extra care in handling cows and cream. Let us have a fair, legitimate profit in conducting creameries, and I am quite certain that the Washington dairy farmer is willing to pay a fair price for marketing his product. This would give us better creameries, better butter and better dairy farmers.

3. The present conditions have caused the quality of Washington butter to degenerate, especially the keeping quality of the butter.

The writer spent ten years in eastern creameries, and where milk is exclusively received, many creameries pay on the basis of 100 pounds of milk, testing 4 per cent. This is the only correct way and does away with all misrepresentation. The large creameries receiving mostly cream pay 2 cents below the New York market and keep the overrun. This makes bookkeeping easier and it is a very satisfactory way. It costs from one and a half to two and a half cents to gather one pound of fat in Connecticut, Pennsylvania, Maine and New York. Generally speaking, the creamery charges from 5 to 6 and a half cents to make and sell butter.

To remedy our present conditions it is necessary that the farmers must understand something about testing. There is a big difference between a weighed sample of cream and a pipette measure.

To run a creamery costs money: ice, coal, oil, boxes, paper, salt, wages, taxes, rent, repairs of machinery, general supply, to say nothing of breakage, interest on money invested, wear and tear of machinery, stationery, and of a gathering plant, feed, repairs and other small items. The farmer who thinks that there is a lot of money in creameries is a big fool.

Why has the state of Washington not as fine creameries as Minnesota or Wisconsin? The creamerymen of this state ought to employ better business methods in conducting their affairs; they ought to be honest and straightforward men with a full knowledge of all details of creamery work; they ought to understand dairying to the full extent; they ought to be the promoters for better dairying; they ought to be fair-minded advisers of the dairymen; they ought to strive to get better cream and make better butter. If our commission men in Seattle would pay according to quality of butter, like New York, Chicago, etc., it would be a great improvement. What we need is a board of trade.

I am well aware of the fact that my writing will not please many, but I can stand it, and in the meantime let us have more facts and a better understanding in the creamery and dairy line. — L. ENGELMAN, Manager, Rockwood Creamery Co.