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THE MAN WHO CONDUCTS THIS LESSON

ROY C. POTTS

Having grown up with the development of the
dairy manufacturing industry, and having been in
intimate contact with it because of his official po-
sition in the Department of Agriculture, it is
fortunate that Prof. Potts was secured to prepare
these lessons.

Since 1915, he has been in charge of the dairy
and poultry marketing work in the Department, and
has not only watched the development of dairy manu-
facturing, but has had a great deal to do with
encouraging and directing its development. During
the time Prof. Potts has been engaged in this work,
the manufacturing industry has gone through an inm-
portant evolution, and Prof. Potts understands
not only the details of the development, but the
reasons for the development.

Before coming to the Department of Agriculture
in 1915, Prof. Potts was in charge of dairying at
the Oklahoma Agricultural and Mechanical College at
Stillwater, Okla. He was in that position for 10
years.

1

2 , DAIRY LESSON 2

Between 1913 and 1915, he was the dairy editor
of the "Oklahoma Farmer Stockman," and as such he
traveled a great deal among the dairies of Oklahoma
and the adjoining states.

Prof. Potts has an enviable standing among both
the dairymen of the country, the manufacturing
interests, and dairy scientists. He is a member of
the American Dairy Science Association, the Ameri-
can Farm Economics Association, and the National
Association of State Marketing Officials. So you
see, he has had a great deal to do with the advance
of dairy production and marketing methods.

While he has been the author of many government
bulletins on marketing, the book for which he is
best known is "Dairy Laboratory Outlines," which
was published in 1912.

You will enjoy studying Prof. Potts’ lessons,
both because of his simple and straightforward
method of expression, and because of the authority
with which he speaks.

SUMMARY OF PROFESSOR ROY C. POTTS' TRAINING AND EXPERIENCE

EXPERIENCE: Specialist, in charge Dairy and Poultry Marketing, Bureau
of Agricultural Economics, U. S. Department of Agriculture, since Feb-
ruary, 1915
Professor, in charge Dairying, Oklahoma Agricultural and Mechanical
College, Stillwater, Okla, 1906-15
Taught rural graded school, 1903-06
Dairy Editor, ‘‘Oklahoma Farmer Stockman,'' 1913-15
MEMBER: American Dairy Science Association, American Farm Economics
Association, National Association- State Marketing Officials

AUTHOR: ‘‘Dairy Laboratory Outlines,'' 1912; various government bulletins
on marketing and dairy products

EDUCATION: B. S. Michigan Agricultural College, 1906

HOW TO STUDY THIS LESSON

Before you have gone far in this course, you
will begin to realize that the manufacture of dairy
products is unusually important, cue to the fact
that such a large part of milk and cream is manu-
Factured into other products before it is sold to
the final consumer. It is important, therefore,
that you thoroughly familiarize yourself with the
manufacturing situation.

MARKETING DAIRY PRODUCTS 3

First, Learn Which States Are Most Important

To master Part I, you will probably find it
necessary to spend two, or possibly three study
periods. That section of Part I that will probably
be most difficult to master is the one entitled
"Important Dairy Manufacturing States."

You may think at first that you will have
little need for such information as this in every-
day work, but no one can really become successful
in any part of the marketing of dairy products
unless he is thoroughly familiar with the source
of production.

IMPORTANT DAIRY MANUFACTURING STATES

—=——SS————

Numbers indicate the rank of states in the manufacture of all dairy
products. Names of products indicate that the state in which the name
is written leads all others in the manufacture of that product

How To Use The Map

An outline map of the United States is provided
with these study suggestions, in order to help
you learn the importance of the various states in
the manufacture of dairy products.

The way to use this map is to write first the
number that represents the rank of each state,
placing the number within the borders of the state
on the map. This will help wonderfully in fixing
the order of rank of the various states in your
mind.

4 DAIRY LESSON 2

After you have this done, study the map care-
fully and recite to yourself all that you remember
of the reasons why the various states excel in the

products which they manufacture in important quanti-
ties.

Now, print the name of the product within the
borders of the state in which that state leads all
others. For example: you will write "creamery
butter" within the borders of the state of Minne-
sota; you will write "dairy butter" in Texas.

When you come to Wisconsin, you will find that
you have three names to write, but they are all
varieties of cheese, so it will be just as well to
write the word "cheese," because Wisconsin does make
more cheese than all the rest of the United States
put together.

New York leads in Limburger cheese, so you will
need to write that name or an abbreviation of it
within the borders of New York. But New York also
leads in five other products. In order to enter
a complete list for New York, it will be better to
write the list on the border of the map and draw
an arrow from this list to the state of New York
to indicate that New York leads in those products.
In the same way, indicate the leadership of the
other states according to the figures you will find
on pages 1, 12, 15.and 14:

What_to Do With the Map

After you have the map made in this way, study
it carefully. It might be a good idea to carry
it in your pocket and look at it as you have occa-
Sion during the day.

There is some exceedingly important informa-
tion under the heading “How Dairy Manufacturing
Plants Stabilize the Industry."

Use the map you have made, in connection with
your study of Part II. As you are studying about
the six classes of butter, refresh your memory
as to which states produce the most butter, remem-
bering that one class of butter is produced in
largest quantity in Minnesota, whereas other
classes are produced in larger quantity in Texas.

MARKETING DAIRY PRODUCTS 5

Use the Map in Your Study of Cheese

In the same way, use the map as you are studying
about the manufacture of cheese.

You should spend at least one study period, or
perhaps two, in the study of the second part of
the lesson.

Discuss Dairy Manufacture With Others

It will greatly help if you will discuss what
you have learned with someone else. Pick out the
points in the lesson that you think are not known
by some of your friends and talk with them about
those points.

DAIRY LESSON 2

sess nnn

STUDY OUTLINE

Part 1. The Importance of the Industry

The Producers! Interest in Dairy Manufacturing
The Manufacturers' Interest in the Producer..

Scope of the Dairy Manufacturing Industry

Important Dairy Manufacturing States
Why New York Is the First State..ccccccccveee
How: WiSeconsSin, EXCeGls. «as cwie sa \vic.c\c ns bin is ateln(wate
Pennsylvania Holds Third Place. secccccacsencs
Marinesota LS TPOUrtH ssc ccc wc «6-0 cle u isieie wlctala mrniete
Miechican ES Pit Clic: ais c's ie'a,aieie = swam ee e\e's) eieisinlekalene
Ohi O-COmeSG 75 Lb Ma sc's a «acetal eieie we. eie.e)s/a Siete oveianeine
California Ts ‘SOvVeGmth <'c\s\s aes es, a)s 0 camer ale arene
Dai py BULter Product Lon. sc/sicle «sista e's sles (slae aratane
Oregon An Important Dairy Manufacturing State.
[iLinois,; -the Ninth Stave sc «0 = s.0m eles selene
Nebraska Leads in Buttermilk Powder.....e.ecee

How Dairy Manufacturing Plants Stabilize the

Industry
Market Milk Prices Stabilized by Manufacturing

Classes of Dairy Products

Milk ‘Composition and Vales ss .c.< c:n:0 ais:s's 00 ge eee
Cream, “Its. Compositionand Valve. <<é 5c. seme

Part II. Classes of Dairy Manufacturing Plants
Processing Plants. Def 1nedcc cc. aces vie a me eee
Manufacturing Plants: Defined. sc <<s)ls.0 6.6 sone
Butter and Tis Six CLASSES Caiené tem clo wel oo nee

The Manufacture of Cheese
Varieties of CHESS Ce SS eee ele Skies ws ele eee
American CHESS i see. c Siar ee raw late lerele one aicone eee
SWLSS CHEOS6 s sielbrc slanere wie nian oles he aus erates cee

Condensed and Evaporated Milk

Milk Powder

Uses of Milk POWGOR? 6.6) eo tarclo eta ete e ocertuleistaraveioge
Buttermilk Powder sice'xals sclsrc\alasteln sain nla elena

Page

7

3
2

10

Li

Ld
LE
12
12
12
15
13
13
13
14
14

ORGANIZATION FOR THE
MANUFACTURE OF DAIRY PRODUCTS

BY ROY C. POTTS

A student of dairy marketing should know not
only how dairy products are marketed in the various
trade channels, but he should also know how each
branch of the industry is organized; how it func-
tions, and how it renders an economic service in
relation to other branches. This knowledge should
give the student a broader view of the problems
of marketing and prepare him to solve then.

It is this broader view that is most needed,
for, too frequently, producers, manufacturers, dis-
tributors, and market men see only the product and
the dollars they desire to get out of it. They
know very little about the problems of marketing
except that part with which they are directly and
intimately concerned. Consequently, they can be of
but little real assistance to any other group.

This has resulted in a lack of sympathy and co-
operation between producers, manufacturers, dis-=
tributors, and consumers—a condition which hinders
rather than helps the advance of the dairy in-
dustry.

It is essential, therefore, that students of
dairy marketing obtain a knowledge not only of dis-
tribution, but also of production and manufacture.
With this knowledge, any one is better prepared
for formulating constructive plans for better
marketing.—Editor's Note.

PART I

THE IMPORTANCE AND SCOPE OF THE DAIRY MANUFACTURING
INDUSTRY

It is true that producers, manufacturers, and
distributors are all in business because they each
expect to receive a profit from their efforts,
but each also renders a service to the other which
should be recognized. Neither would be able to

rf

8 DAIRY LESSON 2

succeed without the services of the others.

While the consumer makes the demand which de-
velops the market, it requires the services of the
manufacturer and the distributor to get the products
from the producer to the consumer. And other
direct and contributing services are often re-
quired, such as were mentioned in Lesson B in which
you learned about the operation of the marketing
machinery.

Need For Dairy Manufacturing Obvious

The essential need for dairy manufacturing is
readily obvious. Milk and cream are quickly perish-~
able food products under ordinary conditions.
Areas remote from large cities or fluid milk mar-
kets would be practically devoid of a satisfactory
market were it not for the dairy manufacturing in-
dustry which converts the quickly perishable milk
and cream into less perishable products such as
butter, cheese, milk powder, condensed milk, etc.

Manufacturing Promotes Dairy Development

In fact, it has often been the establishment of
a dairy manufacturing plant in a community that
has given the community a satisfactory market for
its dairy products and thus made possible thousands
ef rather extensively developed dairy sections.

It should not be inferred that dairy factories
precede extensive dairy production, for such is
not necessarily true. A certain amount of produc=
tion is required for the successful operation of a
dairy manufacturing plant, but with such a plant
able to furnish a profitable market for a larger
production it is but logical for larger production
to result, provided dairy production is as profit-
able in the community as other branches of farming.

The Producers Interest in Dairy Manufacturing
Producers, dependent upon dairy manufacturing

concerns for a market, have a deep and vital in-

terest in the business policy, methods, and ef-

MARKETING DAIRY PRODUCTS 2

ficiency of the concern they patronize. Their
returns will be affected by the quality of product
manufactured, the market obtained for it, and the
cost of manufacture and marketing.

The fact remains that producers, except where
they own and operate their own manufacturing plants,
are dependent upon the services of others. Unless
this service is efficiently and equitably rendered,
the producers may be the losers from inefficient and
uneconomical manufacturing methods. When such
uneconomical methods exist, organized rather than
individual efforts of the producers may be most
effective in bringing about the needed improvement.
Sometimes the best thing to do is to secure a
more satisfactory outlet through other manufactur-
ing concerns or by organizing a cooperative manu-
facturing organization.

The Manufacturer's Interest in the Producer

The manufacturer cannot select a location for
a dairy plant at random. His chances for success
would be small. He must be assured that the neces-
Sary volume of raw material (milk or cream) is
available in the community or territory tributary
to his proposed factory. If the available supply
of raw material is large and the price received by
producers is relatively low, or the tendency of
producers is toward larger production, possibili-
ties of success are far greater than where opposite
conditions exist.

The manufacturer who has his own and the pro-
ducers’ interest at heart, will endeavor to main-
tain or even increase production. His overhead
cperating costs per unit of product manufactured
will be decreased as his volume of output increases,
hence increased production should benefit both the
producer and manufacturer.

He will study the producer's problem of produc-
tion to the end that he may give assistance in
lowering production costs and improving the quality

10 DAIRY LESSON 2

of product, thus increasing the producer's profits
and encouraging both a continued and increased pro-
duction.

Many progressive manufacturers take a broad
view of the producer's production and marketing
problem, for they realize their interests and the
producers’ are closely related, and their success
is to a large degree dependent upon the success of
the producer.

SCOPE OF THE DAIRY MANUFACTURING INDUSTRY

The development of the dairy manufacturing in-
dustry has followed closely the development of
dairy production. And production has grown with
increased manufacturing facilities. In many com-=
munities, the small local creamery or cheese fac=
tory has pioneered the development of dairying by
making a market for the milk or cream produced.

In recent years, with the building of good
roads, use of motor transportation, and an improve-=
ment in transportation facilities generally, there
has been a marked tendency toward fewer and larger
manufacturing plants, especially in the creamery,
market milk, and ice cream industries.

Extent of Dairy Manufacturing

A view of the importance and the extent of dairy
manufacturing may be obtained from the fact that
the number of commercial dairy manufacturing plants
in the United States approximates or exceeds 10,000
and that in these plants somewhat more than 45% of
all the milk and cream produced is converted into
the various kinds of manufactured and processed
dairy products, which have a value closely approxi-
mating one billion dollars annually.

It is obvious that to finance, maintain, and
operate these plants, an enormous capital investment
is required. Thousands of people must be employed
and the interest on the capital investment, and the

MARKETING DAIRY PRODUCTS Ll

wages of these laborers, and the cost of the neces-
sary supplies for manufacturing—all are very neces-
sary parts of the cost added between the producer
and the consumer. This manufacturing service must
be maintained and paid for.

IMPORTANT DAIRY MANUFACTURING STATES

There are 26 states that hold an important place
in the manufacture of dairy products. The rank of
these states in the manufacture of the 135 most
important dairy products is important for you to know.

Six states stand out as leaders, their rank
being as follows:

1. New York 4. Minnesota
2. Wisconsin 5. Michigan
3. Pennsylvania 6. Ohio

These states hold their respective places for
the following reasons.

Why New York Is the First State

New York is first in total production in Lin-
burger cheese, cottage, pot, and bakers’ cheese,
condensed milk, evaporated milk, whole milk powder,
skim milk powder. She produces the second largest
amount of American cheese, brick, and Munster cheese,
and cream powder; she produces the third largest
amount of Swiss cheese, and she stands sixth in the
production of buttermilk powder.

Thus, New York holds an important place in the
manufacture of 11 of the 13 important dairy
products.

How Wisconsin Excels

Wisconsin produces more cheese than any other
state inthe Union. Infact, she produces more cheese
than all of the rest of the states put together.
She produces the largest amount of American cheese,
Swiss cheese, and brick and Munster cheese. She
produces the second largest amount of Limburger
cheese and of creamery butter.

12 DATRY LESSON 2

She stands third in the production of cottage,
pot, and bakers' cheese, condensed milk, whole
milk powder, and skim milk.

She stands fourth in the production of butter-
milk powdere

Thus, you see Wisconsin holds an important place
in the production of 10 of the 13 important dairy
products.

Pennsylvania Holds Third Place

Pennsylvania wins third place by being the
leader in the production of cream powder; by hold-=
ing second place in the production of dairy butter,
cottage, pot, and bakers' cheese, evaporated milk,
and whole milk powder. She is fourth in production
of Swiss cheese and skim milk powder. She holds
seventh place in the production of American cheese,
brick, and Munster cheese, and condensed milk.

Thus, she holds an important rank in the pro=-

duction of 10 of the 15 manufactured dairy prod-
ucts.

Minnesota Is Fourth

Minnesota holds fourth place because she leads
all of the states in the production of creamery but=
ter. She is second in the production of butter-
milk powder; third in the production of brick and
Munster cheese; fifth in the production of Amer-
ican cheese; sixth in the production of cottage,
pot, and bakers' cheese; and eighth in the produc-
tion of skim milk powder.

She produces an important amount of six of the
13 manufactured dairy products.

Michigan Is Fifth

Michigan, the fifth dairy state from the
Standpoint of manufactured products, is second in
the total production of condensed milk; third in
Limburger cheese, fourth in evaporated milk; fifth

MARKETING DAIRY PRODUCTS 13

in skim milk powder, cottage, pot, and bakers’
cheese, and Munster cheese; sixth in American
cheese; seventh in buttermilk powder and creamery
butter.

Thus, she produces an important amount of nine
of the 13 important dairy products.

Ohio Comes Sixth

Ohio is second in the production of Swiss
cheese, fourth in the production of creamery but-
ter, brick, and Munster cheese, and cottage, pot, and
bakers' cheese; fifth in dairy butter, and fifth in
Limburger cheese; sixth in condensed milk; seventh
in evaporated milk.

She produces important amounts of eight of the
13 important manufactured dairy products.

California Is Seventh

You should also note that California is impor-
tant in the manufacture of dairy products. She
makes important amounts of eight of the 13 products.
She stands second in skim milk powder; fourth in
American cheese; fifth in Swiss cheese, evaporated
milk, whole milk powder, and creamery butter;
seventh in cottage, pot, and bakers’ cheese; ninth
in condensed milk.

Dairy Butter Production

It is an interesting fact that only one of the 10
States producing the most creamery butter produces
an important amount of dairy butter. That state
is Ohio, which stands fourth in the production of
creamery butter and fifth in the production of
dairy butter.

Texas leads in the production of dairy butter,
but does not hold an important place in any other
product.

Oregon an Important Dairy Manufacturing State
You should note the important position held by

Oregon. Oregon produces seven of the 13 important
manufactured dairy products.

14 DAIRY LESSON 2

She holds third place in the production of
American cheese; fourth place in the production
of limburger cheese; sixth place in the production
of Swiss cheese, and brick, and Munster cheese;
eighth place in the production of condensed milk;
and tenth place in the production of evaporated
milk, cottage, pot, and bakers' cheese.

Illinois the Ninth State

Illinois produces five of the important dairy
products, standing fourth in the production of con-
densed milk; fifth in buttermilk powder; sixth in
evaporated milk; seventh in the production of skim
milk powder; and eighth in creamery butter.

Nebraska Leads in Buttermilk Powder

You should note that Nebraska leads in the
production of buttermilk powder, although she is
sixth in the production of creamery butter.

This will show you that, although a few years ago
dairying was largely centered in eastern states, it
is now centered in the Middle West.

HOW DAIRY MANUFACTURING PLANTS STABILIZE
THE INDUSTRY

Dairy manufacturing plants, as has been pointed
out, have made possible the extensive commercial
development of the dairy industry. They have done
even more—they have given stability to the
industry.

No matter how variable may be the supply of
milk or cream from day to day, month to month, or
season to season, the surplus produced may be con=
verted into manufactured products.

The manufacturing industry, supplemented by
the storage industry, stabilizes supply and
demand, and thus gives stability to the price of
cairy products.

MARKETING DAIRY PRODUCTS 15

Manufacturing Stabilizes Prices

In the absence of stability in supply and de-
mand, there is a constant fluctuation in prices,
which increases the risks and possibilities of loss
to producers, manufacturers, and distributors, and
causes more or less uncertainty in the minds of
consumers.

These conditions neither encourage production
nor consumption and therefore are not desired. Be-
cause of the fact that the value of milk and cream
for manufacturing is reflected directly from the
market value of the manufactured products, the
price of milk and cream becomes stabilized when the
price of manufactured products is stable.

Market Milk Prices Stabilized by Manufacturing

In most regions supplying fluid milk and cream
to cities, the supply is quite generally in excess of
the needs, and the surplus must be converted into
manufactured products.

The manufacturing plants, act, so-to-speak,
like safety valves on production and relieve the
market of a glutted supply. They also tend to
establish a minimum price for market milk, which is
the manufacturing value of the surplus produced.

This manufacturing value also tends to operate
as a "governor" on the price of fluid milk and cream
sold to city milk distributors, for if the city
price rises to a figure greatly higher than the
manufacturing value, and the country sources of
supply are uncontrolled, there is a tendency for
owners of the uncontrolled supply to attempt to find
a market among the city milk dealers, even at a lower
price than the prevailing fluid milk price, but
Still above the manufacturing value of the milk.

This possible offering of milk, regularly used
for manufacturing, at prices slightly higher than
its manufacturing value is a competitive factor
which rather tends to stabilize fluid milk and cream

16 DAIRY LESSON 2

prices at figures near the manufacturing value.

Thus the manufacturing industry is both a safety
valve on production and a regulator or stabilizer
of prices.

CLASSES OF DAIRY PRODUCTS

Milk Composition and Value

Milk has been defined in broad terms as "the
normal secretion of the mammary glands of animals
which suckle their younge" In some foreign coun-=
tries, the milk of sheep and goats is used, but in
the United States, the milk of cows is almost ex-=-
clusively used in commercial trade channels.

A number of large herds of milch goats are kept
in California, and some smaller herds and individual
milch goats are scattered throughout the country.
The milk of the goat contains a very high percentage
of butter fat and total solids and is recognized as
specially adapted for use in making cheese, espe=
cially in foreign countries where the "Roquefort"
is chiefly made from goats’ milk.

Composition of Cow's Milk — The normal com=
position of cow's milk in its whole and unadultur-

ated form is given by Michels as follows:

Watereccccee 87.1%
BAG se ae siete 3.9%
SUSAT .s\« swe © 4.9%
Casein...cee 2.9%

53.9% fat
plus 9%

Solids not fat solids not

ee OS
ee Ne tS SS

Albumen..... ~5% =9% fat equals
BRS eiaeiciae - 7% 12.9% total
Total....- 100.0% solids.

Food Value of Milk—It will be noted that in
100 pounds of milk there are nearly 13 pounds of
edible and digestible solids, of which approxi-
mately 30% is fat, nearly 40% is sugar, and nearly
30% is casein and albumen. (See also Figure l.)

That milk is a complete food is evidenced by the
fact that infants live for a period and thrive and
grow fat on it alone. It is highly digestible and

MARKETING DAIRY PRODUCTS 17

nutritious and contains the elements of vitamines so
important in stimulating growth and maintaining
normal body functions and good health conditions.

In fact, the food products made from milk and
cream possess these vitamine qualities and also
rank high in food value. For these reasons, the

COMPOSITION OF 100 POUNDS OF COWS MILK

Relative Importance of
Each Solid to Total Solids

TOTAL SOLIDS 12.9 LBS=100%

Water
87.) Ibs

Pi
-
-
-
oa
--
-

Cis and Albumin 1.2 Ibs

FIGURE 1. WHY COW’S MILK IS SUCH A VALUABLE FOOD
This chart illustrates the content of cow’s milk. You will see that all
of the total solids are unusually valuable nutritious elements

consumption of dairy products in larger quantities
is recommended and is being urged by health authori-
ties and by organizations and agencies interested

in public health work and in the future development
of the dairy industry.

Such work is being supported by producers,
manufacturers, and distributors of dairy products,
for in it they see possibilities for increasing the
demand and use of dairy products and thereby the
further development of their own business.

18 DAIRY LESSON 2

Cream, Its Composition and Value

Cream is the product obtained by skimming or
removing from milk, the fat content together witha
part of the non-fat content. Cream was previously
skimmed from the surface of milk by hand witha
ladle, after it had risen to the surface. Now
cream usually iS Separated by means of centrifugal
separators.

The advantages of the centrifugal process of
separating the cream are that less fat is left in the
skimmed milk and a higher quality of cream may
generally be obtained.

Under the hand process of skimming it was not
uncommon to delay the skimming until the milk had
soured or clabbered. While in the centrifugal
process, the cream is skimmed from the fresh, warm,
sweet milk, thus giving a fresh sweet cream which,
when properly cared for on the farm and delivered
promptly to the factory, enables a higher quality
product to be produced, an important factor in the
marketing where discriminating trade is supplied.

Composition of Cream—The composition of cream
will depend upon the amount of fat and skimmed milk it
contains. If from 100 pounds of normal whole milk,
containing 3.9% fat, all the fat be skimmed and
enough skim milk be taken to make 10 pounds of crean,
the 10 pounds of cream would contain 39% fat, for
3.9 pounds of the 10 pounds would be fat.

If, instead of enough skim milk to make 10
pounds, an additional amount to make 20 pounds were
taken, the percentage of fat would amount to 19 1/2%
or 1/2 the percentage in the former case.

In commercial practice, not all the fat is re-
moved, as here assumed, but from 3/100 to 5/100 of
1% of fat remains in the skimmed milk. It is de-
sirable that producers, manufacturers, and market
men dealing in cream know these facts for the value

MARKETING DAIRY PRODUCTS 19

of cream is dependent in large measure upon its
quality and its fat content.

Advantages of Heavy Cream—Although 20 pounds

of cream testing 19 1/2% fat contain the same
amount of fat as 10 pounds of cream testing 39%,
it actually would have a less value to the butter
manufacturer for he would have to provide twice the
amount of cream vat space, twice the heat to pas-
teurize, twice the refrigeration to cool, and
twice the churning space to churn.

But to the cream dealer or the milk distributor,
the 20 pounds might have the higher value for it
contains 10 additional pounds of skim milk which
the milk dealer would have to supply if he received
59% cream and sold 19 1/2% or even lower testing
cream.

Ordinarily, cream for table use contains from
12% to 18% fat, and cream for butter making, from
30% to 40% fat.

A high testing cream is also desired for butter-
making because the transportation costs are based
upon the size of the can, and 10 gallons of 40%
cream take the same rate as 10 gallons of 20% crean,
yet on the basis of pounds of fat, it actually costs
twice as much per pound butter fat to ship 10 gallons
of 20% crean.

Part: EI
CLASSES OF DAIRY MANUFACTURING PLANTS

Commercial dairy plants may be grouped into
two general classes:
1—Processing plants
2—Manufacturing plants

Processing Plants Defined

In this group are included both country and city
plants equipped to receive, cool, pasteurize,
bottle, or otherwise handle milk and cream and pre=

20 DAIRY LESSON 2

pare it for city distribution. Many such plants are
also equipped to manufacture milk products and
therefore would be included in both groups.

Manufacturing equipment is required in many
processing plants for converting the surplus sup-=-
plies of milk and cream into manufactured products.
Often an extensive manufacturing enterprise is con-=
ducted as a regular part of the business. Such
enterprise usually includes the manufacture of
butter or ice cream, or both. Often other products
are manufactured such as condensed (whole) and
powdered (skim) milk.

Manufacturing Plants Defined .

In this group are included those firms which are
engaged in the business of manufacturing dairy prod=
ucts. The business of such firms is less compli-
cated, for ordinarily a single product is manufac=
tured, although some firms may manufacture several
products such as—

(a) Butter and casein; or butter, casein, and
milk sugar

(b) Butter and evaporated skim milk; or butter
and powdered skim milk

(c) Butter, cottage cheese, and ice cream
(ad) Butter, and skim or part skim cheese
(e) Butter and condensed buttermilk

It will be noted that a variety of combinations
is possible. In general, the kinds of products
produced depend upon the kind and quality of raw
‘material received, the kind of equipment in the
plant, the training and skill of the employees, and
the market prices obtainable for different products.

The markets available and prices obtainable for
the secondary products in relation to the costs of
raw material and manufacturing are factors which
determine the practicability and profitableness of
producing a variety of products.

MARKETING DAIRY PRODUCTS 21
See

In lessons 3 and 4, the business of manufacturing
each of the more important dairy products will be
treated in considerable detail. The remainder of
this lesson will be devoted to a discussion of those
products most important in dairy trade channels for
a student of dairy marketing should know each thor-
oughly.

Butter and Its Six Classes

Butter is the product obtained by the churning
of cream. Except when the cows are on fresh green
grass pasture, it is the custom in commercial
creameries to add to the cream before churning a
harmless vegetable color in such amount as to give to
the butter the natural tint of full grass butter.

How Butter Is Made—In the process of churning,
the small microscopic globules of fat in the cream
are united into granules, at first as small as pin
points, then larger as the churning continues until
they reach the size of large grains of wheat or small
peas, when the churning is stopped and the buttermilk
drained out.

It is common practice to wash the butter once or
twice with water of about the same temperature as
the buttermilk, thus removing the remaining butter-
milk and leaving a clear brine in the butter.

The process of butter making is completed by salt-
ing the butter and working the salt uniformly
through it as the butter granules are pressed into a
uniform compact mass, in the churn or on the worker.

Six Classes of Butter—In commercial channels
of trade, six classes of butter are recognized:

1. Farm or Dairy Butter
2e Creamery Butter
-3. Processed Butter

4. lLadled Butter

5. Packing Stock Butter
6. Grease Butter

DAIRY LESSON 2

22

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MARKETING DAIRY PRODUCTS

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WHERE THE CREAMERY BUTTER IS MADE

In comparing this map with Figure 2, you will see that most of the

FIGURE 3.

y butter production are

in farm butter production

states that hold important places in creamer
comparatively backward

24 DAIRY LESSON 2

Farm or Dairy Butter—is butter made on a farm
from the milk or cream of not more than two dairy
herds. As a commercial product, it is becoming of
less importance each year, for the trend of butter
production is toward an increase in factory or
creamery butter production with a decrease in farm
production. By far the greater part of dairy butter
is consumed on farms or in the local villages and
towns where it is marketed by farmers. As a com-
mercial dairy product, dairy butter is becoming of
less and less importance.

Process, Ladled, Packing Stock, and Grease
Butter—are either lower grades of dairy butter, or
products made from the lower grades. Grease butter
is the lowest grade and, as its name signifies, is
fit only for use as grease in soap making or for other
purposes. It may be rancid, very sour, dirty, or
otherwise unwholesome or unfit for food. Its value
is very low.

Packing Stock Butter—consists of miscellaneous
lots of dairy or farm butter packed in its original
form in pails, tubs, barrels, or other bulk packages.
it consists of the surplus farm or dairy butter which
accumulates mainly at country stores, or butter of
such inferior quality that it could not be sold
to local customers.

It is packed into bulk packages to facilitate its
shipment to market where the better lots are sorted
out and find their way into bakeries, and low class
cafes, and restaurants.

The poor and fair-to-good lots are sold to
ladlers and process butter manufacturers. Monthly
reports of the stocks of packing stock butter in
public cold storage are issued by the U. S. Bureau of
Agricultural Economicse

Ladled Butter—is a product obtained by soften-
ing and ladling or reworking packing stock butter to
which salt is usually added during the ladling

MARKETING DAIRY PRODUCTS 25

process. Where a higher color is desired, the
proper amount of butter color is thoroughly mixed
with salt before it is sprinkled over the butter.

When the butter has become very soft, it is
"sieved." Ladles with fine screen bottoms are
manipulated under and lifted up through the butter,
thus removing particles of paper or other foreign
material that would be objectionable. With hand
ladles or paddles, the butter is worked to a uniform
color and consistency, when it is packed into prints
or other forms of packages.

The principal outlet for ladled butter includes
bakeries, low class cafes, and those who want cook=
ing butter.

Its value depends upon its quality and, toa
large degree, its use. Ladled butter, like process
butter, is of importance primarily because it fur-
nishes a market outlet for low grade dairy butter
and packing stock. Also it is a source of low grade
butter of wholesome quality, especially for baking
and cooking purposes at prices below that of good
dairy or creamery butter.

Process Butter—is the product made by melting
other butter, draining off and recrystalizing the
fat or oil, and then churning it with a carefully
ripened starter miik, washing, salting, and working
after much the same method as creamery butter is
made.

Process butter manufacture is also a declining
industry, the amount manufactured during the past
five years being as follows:

Year Pounds

EOL enw ecesecsavesesscse 27,507,982
Beeb nia seceded oe.es's. (19,270,953
Poe i tage de dodds dace 27,558,718
L920... Ha cccesececcecses 9,735,214
ote anc aeedeninekees oe 5,877,157

Process butter is widely distributed by the
packers and has about the same ultimate market

_

outlets and uses as ladled butter. The manufacture
of process butter is under the supervision of the
Dairy Division of the Bureau of Animal Industry of
the U. S. Department of Agriculture, and reports of
the monthly production are compiled and issued by
the U. S. Bureau of Agricultural Economics.

Creamery Butter—is by far the most important

of all classes of butter, the amount produced in 1921
being over one billion pounds, and for the preced-
ing five years, according to government reports as
follows:

Year Pounds

VOUG 66 ciate aleteteicial ei esa wees? OOO SO Renee

TORT cece acs ceenlesle ea (4ogooos COS

TOUS ss '0b doles e cesarean MOR Loe

UGG. swicwce es sesh ec ees Olds oU Tanase

1920.20 wale 6 uclveive isle s7 COO,OGEsI TE

In a later lesson the creamery butter industry
will be considered in much detail and very complete
information given on every phase of the industry.

It is well to state here that the composition of
butter is subject to both federal and state regula-
tions and because of the effect of different con-
ditions and methods of manufacture, its composition
is subject to considerable variation.

Composition of Butter—The following table
gives the range of variation in the composition
of butter and the general average for its composi-
tion:

Range General Average

Buttorrate reese «eelee OO LOT GO” 82.0%
Water views aa @ eee On COO 14.5%
SALT cntnp one ante <inieinte ee yO UO Oe 2.7%
Curd end Ashe.c.sse0e 00d) 60 2% 0.8%

Cio Ae 8 ee nis eae eae el See DMM CICS

The maximum content permitted in unadulterated
butter by federal standard and by most states is 16%
ana the minimum legal butterfat content is 82.5%
with an allowed tolerance of 2.5% below this before

MARKETING DAIRY PRODUCTS 27

reaching the limit at which prosecution under
federal law is invoked.

These maximum limits on moisture, and minimum
limits on butterfat, are of special significance to
butter manufacturers, for ina case of violation of
federal standards, the manufacturer is held liable,
whether the butter is in his possession, or has
been sold and is already in the distributing chan-
nels of trade.

THE MANUFACTURE OF CHEESE
Cheese is a product obtained (1) by coagulating
milk with rennet or pepsin, or (2) by development
of lactic acid as it sours, or (3) by addition of

CHEESE MADE IN FACTORIES

EACH DOT REPRESENTS
200,000 POUNDS

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FIGURE 4, CHEESE MAKING LARGELY IN TWO STATES
This map emphasizes the fact that ‘Wisconsin and New York make most

of the cheese. Wisconsin, in fact, makes more than all of the rest of
the states put together

dilute commercial (Hydrochloric) acid. Except in
Special cases, the rennet process of coagulation of
the casein is employed, and the surplus water is
expelled from the curd by heat, which contracts it,
thus forcing out the whey.

The two basic constituents of American cheese
are casein and fat, which, with the moisture con-

28 DAIRY LESSON 2

tent, comprise in most cheese fully 98% of its
composition. Obviously, the coagulation of the
casein into a curd, in which is held the fat, is an
important part of cheese manufacture.

The sugar content remaining in solution escapes
mostly with the water and forms a component part
of the whey. It may be well to note here that milk
sugar is ordinarily produced by crystalizing the
sugar in cheese whey and refining it in the process
of its manufacture.

Varieties of Cheese

The many different varieties of cheese are
produced by different methods and conditions of
manufacture.

The three most important commercial varieties
of cheese are American, Swiss, and brick. fhe dis-
cussion here, and a later lesson on the cheese
industry, will be chiefly concerned with the first
two varieties.

American Cheese

American cheese is the variety most often sold
in retail grocery stores, and when the word "cheese"
is used, it is American cheese that is generally
meant. It has a variety of trade names such as
"store cheese", "colored cheese", "cream cheese",
"Wisconsin cheese", etc.

When uncolored,—that is, when made without the
addition of cheese color to the milk before adding
the rennet—it is often known as "New York Cheese",
especially in western markets.

Different Processes of Manufacture—tThe gen-
eral process of manufacture of American cheese is
subject to variation resulting in different body and
texture, or degree of openness and firmness. This
condition results in marked differences in the com-
mercial quality of cheese and the adaptability of
the cheese to meet different preferences of the

MARKETING DAIRY PRODUCTS 29

trade. Some sections of the trade like a soft, open
texture and body, while others prefer a firm, close
texture and body.

The effort of manufacturers to produce cheese to
suit the marked differences in preferences of the
trade has resulted in a great lack of uniformity in
wethods of manufacture as well as in quality of
product.

Market men need to understand these conditions
in the cheese industry, in order to realize how com-
plex and costly may be the problem to supply each
particular market demand with the special type and
Style of cheese it requires.

Various Styles of American Cheese—Another
interesting fact to note regarding American cheese

is the many styles in which it is made and marketed.
Originally in New York factories, it was made for
export to weigh 60 pounds or more. But now it is made
in the styles having the weights given in the fol-
lowing table:

Table I. Styles of American Cheese

20-250 2.L, 2 or S

: Diam= 3: H :

s eter : Height : Weight : Number packed
Style : Inches : Inches : Pounds : per box
Pneadar..-: 14% 3: 12 s* 65=—-66 ¢ z
ok eae 14% 3: oe oe oO—ao-s Lor 2
DALSYs cece 13% ¢ 4 :
Young : : : -
America..: 7 : ii <> / LO=LE Ss 4
Longhorn... : 4 : u2 SA, b2=13:.8 4

Why Different Styles Are Manufactured—These
different styles have each been the result of a

market demand or, rather, the attempt of manufac-
turers to produce a style which would be received
with favor on the market.

30 DAIRY LESSON 2

The "flat" as will be noted from the table is
alittle less than half as highasa"cheddar." It
was probably produced to meet the demand of trade
which had a very limited sale for cheese and needed a
smaller style than a cheddar.

A "daisy" is practically a small sized flat.
This style has been made principally in Wisconsin to
meet the requirements of southern trade which also
is of a limited sort and naturally demands a small
size cheese.

The “longhorn" is distinctly of Wisconsin origin
and, like the "young America", is especially suited
to hotel, restaurant, and delicatessen trade where
small slices are mostly required and a minimum
of waste and drying out of the cut surface is desired.

The "Square print" was originated also in Wis-
consin but has never come into very large demand,
because it iS more costly to make, sells at a higher
price, and its sale has never been pushed by the
trade.

Each of these styles has its particular merits
and is of importance, but there is no doubt that
either the daisy or flat could be dispensed with or a
compromise size made to serve the purposes of both.

Also the longhorn and young America are so
closely alike that a compromise between them might
well take the place of bothe

Swiss Cheese

Swiss cheese is made by a Special process, the
milk being heated and coagulated in copper kettles
with round bottoms. The curd is removed in one piece
by using a half hoop which carries the draining
cloth under the curd and enables the curd to be lifted
from the kettle and placed in the hoop to drain and
take forme

A special culture of bacteria which produces the
formation of "eyes" is added to the milk before it is

MARKETING DAIRY PRODUCTS 31

coagulated, and the development of the eyes is con-
trolled by the temperatures maintained in the curing
rooms.

The salting of the cheese is accomplished by
holding it in a brine solution for several days
during the process of manufacture.

Ordinarily, the cheese should be held in the
curing rooms for three months or more before it is
marketed, but in recent years, the tendency is to put
the cheese on the market as soon as it shows good
"eye" development and the characteristic Swiss
flavor is fairly well developed.

This practice should be discouraged for it only
results in greater discrimination against domestic
Swiss and in favor of the imported which shows
exceptionally fine large "eye" development anda
fully developed characteristic flavor.

Two Styles of Swiss Cheese—Swiss cheese is
marketed in two styles, “wheel” or "drum", and

"block." The wheel or drum style weighs about 100
pounds and measures about 28 inches in diameter with
a thickness of about 7 inches. This style is packed
two or three in a case.

Block Swiss measures about six inches by six
inches and 26 inches long. This style weighs about
30 pounds each. It is regularly packed with sixina
box placed side by side.

The "eye" development and characteristic flavor
of block Swiss is somewhat less than that of the
wheel or drum style, and the price is usually some-
what less. The block Swiss is most in demand by
small retailers whose sales are limited and by
restaurant trade, which finds it specially well
suited for sandwich making.

CONDENSED AND EVAPORATED MILK
. These products are very much alike in composi-
tion, except that condensed milk contains approxi-
mately 35% of cane sugar. This additional sugar

52 DAIRY LESSON 2

gives condensed milk a heavier creamy or syrupy
consistency, making it specially adapted for use
where cream and sugar are used together as on cereals
and in coffee.

Condensed milk is marketed in cases and in bulk,
the former being, in the main, for household use
and the latter for wholesale trade such as bakeries,
confectioneries and ice cream factories.

Manufacture of Condensed and Evaporated Milk

In the manufacture of condensed and evaporated
milk, a very high quality of milk is required for the
production of the highest quality of product. It
must be perfectly sweet and of fine flavor. In the
condensing pan, it is heated to a temperature of
about 135 degrees Fahrenheit under a vacuum of 25
inches, and water evaporated until the milk has been
reduced to about 3/5 of its original volume.

The evaporated product has about 2% times the
per cent of total solids in normal milk.

The milk to be marketed as evaporated usually
is passed from the condensing pan through an homo-
genizer into the final containers where it is her-
metically sealed. It is later placed in a steam
pressure sterilizer where it is held for 15 minutes
or more until it has been thoroughly sterilized,
thus insuring its keeping quality as a sterile
product. Condensed milk, i.e., the sweetened prod-
uct, is not sterilized as its sugar content con-
tributes to its keeping quality.

Packing of Condensed and Evaporated Milk

Condensed and evaporated milk are packed in
large and small cans, the standard large size for
each being 16 ounces for evaporated and 14 ounces for
condensede In the usual channels of trade, these
products are sold to the retailers by manufacturer's
agents and wholesale grocers. Shipments are made .
usually in carload lots from the factories to the

MARKETING DAIRY PRODUCTS 33
EE
agents or wholesale grocers who, in turn, ship or

deliver to the retailer the exact number of cases of
each size can of each product required by his trade.

MILK POWDER

This is one of the newer milk products which has
come into quite general use among food products
manufacturers, such as bakers and ice cream pro-=
ducers. It has also been received with favor in
many households.

Milk powder is manufactured from either skim
milk, whole milk, or cream and the resulting product
is known as skim milk powder, whole milk powder, or
cream powder. Except for a small percentage of
water or moisture in milk powder, it has the same
relative composition as the total solids content of
the milk or cream from which it was made.

Uses of Milk Powder

The general uses of milk powder correspond to the
product from which it was made, for most powder is
readily soluble in water and, when the proper
amount of water is added to the powder and it is dis-
solved, it has practically the same flavor, taste,
and characteristics of the original milk. The whole
milk powder is used for infant feeding, and the skim
milk powder by food products manufacturers.

Manufacture of Milk Powder

In the manufacture of milk powder, a pure, whole-
Some, quality of fresh milk is required. The milk
to be powdered is partially condensed by some powder
manufacturers before it is sprayed into the hot
dry atmosphere in the dryer where it falls as a
powder to the bottom.

Buttermilk Powder

It may be well here to mention buttermilk
powder which has come into commercial use especially

54 DAIRY LESSON 2

in the preparation of pancake flours and self-rising
biscuit flours, also as a component part of pre-=
pared commercial poultry and stock foods.

This product has not been put generally into
retail stores as its use would be rather limited. It
is made by powdering wholesome sour milk or butter=
milk. When water is added to the powder, a product
results with the same characteristics as the
products from which it was madee

WHERE DOES THE BAD BUTTER GO?

From Lesson 2 you have very clearly in mind that
butter and cheese are the two principal products
manufactured from milk and cream. And So you realize
the necessity for knowing all about the manufacture

of butter and cheese.

The next lesson is devoted entirely to that
subjecte

You, no doubt, have wondered what becomes of the
great mass of dairy butter that is taken in exchange
for merchandise at country stores. No doubt you
have seen some of that butter dumped into barrels in
the back room of the store and have wondered if any
of it might eventually come back to your own table.

What becomes of the butter that turns rancid and
becomes unfit for food?

Why is it that local creameries are fast dis-
appearing from most sections?

Why does Wisconsin make more cheese than all of
the other states put together?

Why is it that much of our Swiss cheese is made
right here in America?

These are just a few of the fascinating subjects
that you will find in Lesson 3.

MARKETING DAIRY PRODUCTS 35

GLOSSARY OF MARKETING TERMS USED IN THIS LESSON

block Swiss cheese, A market form of Swiss cheese
made by matting Swiss cheese curd and then com-=
pressing it into the form of a block, usually 25
inches long and six inches square; each cheese
weighs about 30 pounds.

brick cheese, A type of cheese made in a shape
somewhat resembling a brick; it is about the length
of a building brick and about the same width, but
usually about twice as thick.

Cheddar, n. A style of cheese made in a circular
block, 1414 inches in diameter, 12 inches high, and
weighing from 65 to 66 pounds.

cottage cheese, Cheese made by coagulating
skimmed milk usually by natural souring and heat,
then draining off the whey.

daisy, n. The name of a style of cheese, which is
pressed into a circular form about 1314 inches in
diameter and four inches high, and which weighs
about 20 or 25 pounds.

drum Swiss cheese, A market form of Swiss cheese
that weighs about 100 pounds and measures about 28
inches in diameter and about seven inches thick.
It is the same as a wheel or tub Swiss cheese.

flat, adj. A style of cheese made in circular forn,
weighing 30 to 35 pounds, and measuring 1434 inches
in diameter and 514 inches high.

grease butter, The lowest grade of butter, and fit
only for use as grease in soap making or for similar
purposes; it may be rancid, very sour, dirty, or
otherwise unfit for food.

ladled butter, A product obtained by softening
and re-working packing stock butter, to which salt
is usually added during the ladling process.

Limburger cheese, A variety of cheese that is
soft, but very strong in taste and odor; named for
the province of Limburger in the Netherlands, where
it was first made.

Longhorn, n. A style of cheese of the form of a
cylinder, four inches in diameter and 12 inches
high, and weighing from 12 to 13 pounds.

360 ee

overhead operating cost, Fixed charges in the
operation of a factory or a business, which charges
do not vary materially one way or the other as the
amount of business done or product manufactured,
fluctuates.

packing stock butter, Miscellaneous lots of dairy
or farm butter in its original form, packed in
pails, tubs, barrels, or in other packages. It is
the surplus that accumulates at country stores$ it
usually is of such inferior quality that it cannot
be sold to local customers.

process butter, The product made by melting butter
and then churning it with a carefully ripened
Starter milk, the object being to again collect the
fat globules. The method of manufacture after
churning is done, iS approximately the same as the
making of creamery butter.

Roquefort cheese, A cheese originally made from
the milk of sheep; the cheese after being made is

ripened in caves, and when offered for sale is
streaked with a greenish mold; now made also from
cow's milk.

Sieved butter, Butter, through which ladles with
fine screen bottoms are manipulated for removing
particles of paper or other foreign material that
might make the butter objectionable for food; the
same as ladled butter.

Swiss cheese, A cheese originated in Switzerland;
it is neither hard nor soft, and is commonly a light
yellow in color. Most of it is still made in Switz-
erland, but some is made in America and other
countries. It is characterized by large holes that
develop through the cheese. However, a market form
of Swiss cheese known as "block Swiss" cheese does
not have the large holes in it, due to the fact that
the cheese has been matted and pressed into a block.

vegetable color, Coloring matter derived from
vegetable sources used in the making of butter.

wheel Swiss, A market form of Swiss cheese weigh-

ing about 100 pounds, and measuring about 28 inches
in diameter, with a thickness of about seven inches $
it is made in the shape of a wheel and is the same as
Sora: or * tub” .cowiss.

Young America, A style of cheese made in a circular
form, seven inches in diameter, seven inches high,
and weighing from 10 to 11 pounds.

12-22-2M-10

We yCoiD