SF 240 ea: A Picture of the Dairy _ Industry BY C. W. LARSON “MARKETING DAIRY PRODUCTS LESSON 1 | * Confidential Edition Issued for Members Copyrichr, 1922 a The American Institute of Agriculture , | | CHICAGO « = ei f — ‘i “a THE MAN WHO CONDUCTS THIS LESSON Carl W. Larson Now Chief of the Dairy Division, Bureau of Animal Husbandry, U. S. Department of Agriculture, Professor Larson is ina position, as perhaps no other man is, to give a clear picture of the dairy industry. This is because he has reached his present position through a rather extensive series of positions, all bearing on the same subject. Beginning with the degree of Bachelor of Science of Agriculture at the Iowa State College in 1906, he received the degree of Master of Science at the Pennsylvania State College in 1913, and the degree of Doctor of Philosophy at Columbia University in 1916. His teaching experience includes work as an instructor in dairying at the Pennsylvania State College from 1907 to 1909. In 1909 he was made Assistant Professor, and in 1913, was made Professor in Charge of the Department. At Columbia University he held a position as Assistant Professor of Agriculture and Agricultural Economics. i DAIRY LESSON 1 AY) In 1917, he joined the U. S. Department of Agriculture as Assistant Chief of the Dairy Division, Bureau of Animal Industry, and in 1921 he was. made Chief of the Division. Dr. Larson's work takes him to all parts of the country into those sections where dairying is the principal type of farming. His work also keeps him in touch with dairy manufacture, which is such a large part of the dairy industry. You have a right to look forward to the study of this lesson with a great deal of pleasant anticipa- tion, because Dr. Larson is both ideally prepared in his experience and naturally gifted as a writer. you will find his lesson both interesting and clear. SUMMARY OF DR.LARSON'S TRAINING AND EXPERIENCE EXPERIENCE: Chief, Dairy Division, Bureau of Animal Industry, U. 8. De- partment of Agriculture, 1921- Assistant Chief, Dairy Division, Bureau of Animal Industry, U.S. Depart- ment of Agriculture (on leave from Columbia) 1917-21 Assistant Professor of Agriculture and Agricultural Economics, Colua- bia Unlversity, 1916-18 Professor in Charge, Department of Dairy Husbandry, Pennsylvania State College, 1913-16 Assistant Professor of Dairying, Pennsylvania State College, 1909-13 Instructor in Dairying, Pennsylvania State College, 1907-09 Secretary, Official Dairy Instructors Association Secretary, Pennsylvania Dairy Union Delegate to Dairy Congress, Stockholm, 1911 Studied Dairy Conditions in Europe, 1911 AUTHOR: (with Putney)"Dairy Cattle Feeding and Management", 1917; "Milk Production, Cost Accounts, Principles, and Methods", 1916; and several chapters in books and articles in reviews on dairying and economic subjects. EDUCATION: B. S. A. Iowa State College, 1906; M. 8S. Pennsylvania State College, 1913; Ph. D. Columbia, 1916 A PICTURE OF THE DAIRY INDUSTRY 3 HOW TO STUDY THIS LESSON Perhaps it has not occurred to you that butter produced in Denmark has anything to do with the price of butter produced in Fond du Lac, Wisconsin. If you have not thought that dairy products are of world importance so far as marketing is concerned, you will be surprised to learn some of the facts contained in Part I. Spend One Study Period on Part I Spend plenty of time on Part I. Remember, you must have a broad view of marketing if you are going to accomplish the most. Even though you may be a farmer with only 25 cows, a broad view of marketing will accomplish a great deal more than if your vision does not go beyond the local buyer. It will be worth your while to spend a whole study period on Part I. Spend Another Study Period on Part II Part II is very important because such a large percentage of the milk produced in the United States is manufactured into various products before it finally reaches the consumer. While it is true that later lessons are devoted entirely to the subject of manufacturing dairy products, still you must not depend upon those lessons by themselves. You must have the broad picture of dairy manufacture that Part II gives you. Spend at least one whole study period on this particular lesson. Study Parts III and IV Together Parts III and IV may be used as the basis for one Study period. As amatter of fact, they have a very definite connection with each other because it is the consumption of dairy products on which the future must be based, and if consumption is increasing, it is likely there will be an increasing demand for dairy products. Perhaps the most important thing to know about the increase in production is that new uses have been found for dairy products. This is an indication that there is a possibility of still more uses to be found. STUDY OUTLINE PART I Why Dairying Is so Important in America Many Products Made From Milk.eccccccccccccecse Rank of the Nations of the World in Dairying Which Nations Export MoSteccscccccccsecvevecce We Export More Dairy Products Than We Import. Who Buys Our Dairy Exports..cccccccccccccccce How Dairy Manufacture Has Developed PART If First Creamery Established in 1861]... ...cccceee The Change From Farm Production to Factory Production .. The Invention of Condensed Milk.-.-.cccccccccee The Influence of the Hand Separator. .ccecccecce The Beginning of Centralizer CreamerieS....-«. Cooperation Now Popular .\c velise | ize2a fat ) 6EL'I8t | psz'szb [Xa zee'z01 |" 122 (62 seeuz |ocg'2e | "" é Uoe'vit | 9it'00s |° "002 | 851'9bz |°* ‘pL 9sz'c0s| czz'asz'e |-- ‘| a peel oe 6 SHAT | Tiity) | GLvAS |) STATI ane W115 || SJaTy) Tuy) divs 10295 | var'gnt | “o9NPL : ; ' Z6lI NYE 'SIATVD dl ‘CATV 9 Kult ml yor’ feze'est (torn 5 261 I NYE SYATVD JO WISWIN CNV 'SAATVD OXIUNIDXG FLAY) Aviva JO YGaWnN zer'es | 919'95t |" 19H sig'z | zse'eut |° Ww svete | gae'zet | PW assy corel? | "AA ore'es | uusizze © | #0 gea'ty | suc'ee? |" aH S3ATY) Muvd | jlvis (penupuey) TY) AMV 30 WINN GV3H 0002 SLN3S3¥d3y¥ LO0 HOV3 O7@61 “| ‘NVf YSEGWNN {S3DVTUA ONY S3ILID NI 3TLLVD AYIVG ONIGNIONI ANY S3AT¥2 ONIGNTOXa) SAILLVD AYIVG icate d in Compare this with The numbers ttle. iry cattle. airy ca of dai bers of d 10n WHERE DAIRY CATTLE ARE LOCATED in num te the locat ica d Figure 3, which shows the value of products sold in FIGURE 2. the rank of states The dots 19 A PICTURE OF THE DAIRY INDUSTRY GN 2186S 1 swuvs WOud AGIOS SLONdGOYd AuIVG “ATNO (persnaey) SHY KOU C19S SLNGOSS AYTVG 000'00z$ ; ) SLN3S3uday 100 HOW] 6I6GL ONINNG SIVS WOMS SldiIaDag (DLS ‘SSSAHD 'YALLNG ‘WvayD *yAIW) SLONGOYd ANIVG ovo a ~ a wo s ~~ ee ae 5 mee ee) Se wine O gf Psy 6 A ee) aes Bets at Ae fe Oo £8 mG } Pw Ses SBE Pos # oO ohn Duy ge BES = 2 5 fx oa ~ ov Zo Evidently TES Minnesota and Iowa farmers of 20 DAIRY LESSON 1 Practices which are simple and effective have been put into general use in the important dairy centers. With the milk so produced, it is now possible to assemble milk from a wide territory and Still deliver a product of high quality to the con-= sumer. Dairy Production Grows With Population The dairy industry of this country has grown and developed as rapidly as has the population and general development of the country. The dairy cows and their products have kept up with our very rapid increase in population, and have extended as our population and industries have gone into new terri- tory, and, altogether, have been adjusted according to the changes and developments of our nation. Population Grows Faster Than Number of Dairy Cows However, the demand of the increasing population for dairy products could not have been met in this country by the more or less specialized dairy animals. It was necessary to depend for much of the increase Table IV. NUMBER OF MILCH COWS IN THE UNITED STATES PER 1,000 PERSONS DELO? Ske OS, . ease meee eee TBSO eee als aero aoe a ere ABGOs Ve sesceee wokioe ROAM AE (6 EB TO ne ahie ae eteeuia ce Merten eae TBSO: j interested clara eet ramen TS90 Ohaus canecece cam spere ene eee LSOO Loven ee ce aaimeee ace ea LOMO’ 8, Sore cea ae ee ea eee ee ie ORMEY: Cen Renner ner Mann ry 15 POOL oss aeuc or eee cee ee aod a upon the cattle kept originally and primarily for beef production. Cows of the special dairy breeds have hardly increased in the same proportion as the population has increased. As will be seen in Table IV, the number of milch cows in the United States per thousand persons decreased from 287 in 1840 to 218 in 1921. A PICTURE OF THE DAIRY INDUSTRY aL During this time, however, there have been increases in the yield per cow, which would probably make up for the loss in numbers So that it may be assumed that the production of milk has kept up with the increase in population. Table V. NUMBER OF MILCH COWS ON FARMS FROM 1840 to 1922 2) Miter Cows. -"s : Milch Cows Year 3; on Farms pipet ss a an wie on Farms 1840 ; 4.657, 000) 2s. SOUS: fe 20,497,000 L850 6,585,000. s) POPs. .-20,/757,.000 1860 3; S.060,000 2° 19950. 3 322-252-000 LS HO es S955 .000 3:8 S9LG 222 TOS 20pG LSG04 3. 127445,.000) 2 -LOLT + 22,894,000 LSSOr-2 2. iGo be 2.000": L9LS 1s, 25,510, 000 ESCO! ee Oli oo,000-. s LOE << 2.:25,455 7006 POO Se eeO eo O00 Ss) L920 s 25, 7225000 Lottie seaO0eees,000: «3. LOZK > “<7 -25,594;5000 192 38 1206995000. s' 1922. s'. 24.028, 000 HOW MILK IS UTILIZED The total annual production of milk in the United States has reached almost 100 billion pounds, and is constantly increasing. The uses of this product are undergoing noticeable changes. Greater and greater proportions are needed for household consumption because of the rapidly increas- ing population. Now, more than 45% of the total milk produced is used for direct consumption or for house- hold purposes. Alittle more than this percentage, or about 47%, is used in the manufacture of the various products of milk. Four Products Use About 46% of the Milk _ The product using the largest amount of milk is butter. Cream from 35% of all the milk produced, is used for butter, and this is divided with 22% for creamery butter and 13% for farm butter. The three other products coming next in importance are: con- densed milk, cheese, and ice cream, each using a little less than 4%. queoyiusisul A[EAeLedUIOD [[I]S 018 SesN I0Yy}O oY, “WeoID ddI pu ‘osoayo ‘HIT po}eiodead pue pesuepuod ‘1043nq wtatez ‘10449nqG Axoureerd—sjonpoid vay A[UO OFUI SpeUl SI SULINZOVJNULLU UL PasN HII oY} FO }SOUW VY} JALVYS STYZ WOAF OOS [[TA NOX SLONGOUd GHYALOVANONVW LINVLYOdWI AHL % AYN DAIRY LESSON 1 spunog 000‘ 80F‘S6P‘9F = % OLO°LE ATFU TBIOL Oc0* Lb BUTANZOBN -UsSW UF Posn ATTW eToum Te ,oL OUTABIAIBUN STO 200° weetd pelepMog SO00° (peuueg) HITW peztTyueqys ¥<0° ATW perepMmog S¢O° ATU peyton TPO" OFBTOOOUD ATTA 962°C Wweetd 9d 66S°C (SpuytTy T[Tse) esceeup SOL°S ATTW peqesrodsas pus pesuepuog LO8° ST 1049nq weg 80F° 32 Joe4qnq Areweedp ATTA TBIOL JO 4U9010g T26T NVANO YO WIIW ATIOHM WOUd CHYNLOVAONVN SLONGOUd 22 A PICTURE OF THE DAIRY INDUSTRY 235 Each year, new products are being added, each one affecting somewhat the production of the other products. Although there are no rapid changes from year to year in the relative amounts of milk used for Table VI. USES OF MILK IN THE UNITED STATES : Pounds of Whole : Percent Use = Milk Used © Of total For household purposes : 45,143,000,000 : 45.660 For manufacturing .... : 46,493,408,000 : 47.030 Fed to calves sscccecs = 4,260,000,000 : 4.310 Waste, loss, and un-= : H 2,965,868, 000 98,862,276,000 Specified USes cc. 3.000 Gran@ Tota. <'<«« 100.000 these various purposes, nevertheless there is more variation from year to year depending upon the rela= tive market prices of the various products. There is a tendency over a period of months for adjustments to take place, so that the advantage of one product over another is largely lost. There are Table VII. PRODUCTS MANUFACTURED FROM WHOLE MILK OR CREAM, 1921 3 3 $ : Milk Whole milk : Per cent : Quantity of : used per Product 3 used t of total +: product manus : unit of : t milk A factured : product t : : 3 Pounds f Per Cent ¢ Pounds : Pounds Creamery butter ....-esscccnceeee: 22,153,098,000 : 22.408 : 1,054,938,000 : 21 PArm DULLOT *: 650,000,000 : 1,707,114,000 *Estimates of Bureau of Markets Tables VIII, IX, and X give the production of creamery and farm butter, condensed and evaporated milk, and factory and farm cheese. Increased Use of Milk Powder The three other products of greatest importance are ice cream, condensed milk, and milk powder. Milk powder production slowly increased up to 1919, when there was a very rapid increase. Since that time, production has dropped back considerably, on account of the decrease in the foreign demand. 26 DAIRY LESSON 1 Table IX. PRODUCTION OF CONDENSED AND EVAPORATED MILK IN THE UNITED STATES FOK THE YEAR 1919, BY MONTHS : 2 : Unsweet- : 3 : Evapor= : Steril- : Sweetened :ened evap-: Sweetened : sated part: ized Month: condensed: orated : condensed : Unsweetened : or full : whole skimmed : skimmed ;: whole : evaporated : skimmed : milk milk 5 milk - milk : whole milk : milk* 3: canned 1919 Pounds Pounds Pounds : Pounds : Pounds : Pounds Jan 3,838,000: 4,875,000: 25,896,000: 79,440,000: 3,563,000:1,625,000 Feb 4,594,000: 3,563,000: 39,801,000: 86,538,000: 2,704,000: 451,000 Mar 6,861,000: 3,987,000: 55,610,000: 101,817,000: 3,876,000: 516,000 April: 8,197,000: 5,479,000: 68,104,000 108,471,000: 5,026,000: 617,000 May 11,029,000: 6,937,000: 70,403,000 132,669,000: 5,983,000: 569,000 June : 7,751,000: 9,139,000: 64,019,000 153,673,000: 6,795,000:Not given July : 4,845,000: 8,876,000: 56,399,000 124,538,000: 5,469,000: 46,000 Aug. : 4,109,000: 7,171,000: 46,329,000 105,401,000: 5,764,000: 106,000 Sept.: 3,964,000: 5,454,000: 49,026,000 92,619,000: 4,974,000: 90,000 Oct. : 3,879,000: 5,251,0007.50,689,000 89,632,000: 7,115,000: 386,000 Nov. : 4,285,000: 4,371,000: 41,731,000 77,491,000: 6,523,000: 4,000 Dec. : 5,678,000: 3,968,000: 37,154,000: 81,914,000: 7,217,000: 5,000 Total :69,030,000:69,071,000:605,161,000: 1,234,203,000:65,009,000:4,415,000 (Bureau of Markets and Crop Estimates) “Modified with foreign fats Ice Cream Business Has Grown Enormously Ice cream production has made phenomenal growth, and has gone up rapidly to the present time, though there was a slight decline in 1921. Table X. TOTAL PRODUCTION OF FARM AND FACTORY CHEESE IN UNITED STATES - Factory : Farm $ Total Year 2 Cheese : Cheese : Cheese : Pounds 48 Pounds : Pounds 1849 eserveccsecies s LOD,000,000 = 20d s5567000 1859 ebuivlese@ecle) 0, LOO, 604.000. e:2L05, co45000 1869 109,455,000: : 535,492,000 =) 162,927,000 1879 215,885,000 : 27,272,000 :. 245,258,000 1889 258,055,000. 2) -18..727-000 |: 256-762,000 1899 262,654,000 = (16;572,000 7 :-299), 0075000 1904 SLT. PAS SOOO: o0) 4a ecccteterere cike ten ere tele clatetetetetn 1909 SoLL E76 .1000'*: 9,406,000 : 520,582,000 1914 S771 eo DU DS, OOO ioe. ce clatetecteleie rel cereus oleleterdtetets *1916 SEAS TET 3OOO7 24) incline mistotevetele: te ubeteteeketete ial ciate *LOLT O72 O40 OOO: | etc rete telatersiane Suse teneleie iste etelelote *1918 352,622,000 ° eeeeveeevnee Ss ecececceccce *1919 D195 920000 5) Gee wlalete le evaler teal eaters /elsistel slate 1919 475,001,000: 6,600,000 : 481,931,000 *1920 SOZ, 452), O00 iis te kctetatastovetslotas 2 iiele(eiclseleeieiene aloe) | 3 500,006 000 561,838,000 *6 000, 000 A - p *Estimates of Bureau of Markets. A PICTURE OF THE DAIRY INDUSTRY eee Oaaaaw&«>>a>_&_—=s=s] 27 Table XI. PRODUCTION OF MILK POWDER, BY YEARS : Whole Milk : Skim Milk ~ Year 3 powder H powder H Total - Pounds - Pounds - Pounds ROMA CSS: Scilacats e.etece! a. welelaleye = wee’ Ls 20,988,000 1916. 2 2.125.000 3. 16,465,000. * 18,587,000 1917. : 3,139,000 : 22,624,000 :; 25,763,000 1918 : 4,154,000 : 25,432,000 : 30,251,000 1919 : 8,661,000 : 33,076,000 : 42,328,000 1920 : 10,334,000 : 41,893,000 : 52,227,000 4,242,000 38,546,000 1921 242, 42,788,000 Table XII gives an estimate of the quantities of ice cream produced in the United States each year since 1909. Table XII. ESTIMATED QUANTITY OF ICE CREAM PRO= DUCED IN UNITED STATES H Gallons 3 : Gallons Year ..:: roduction - Year : roduction 1909 : 80,000,000 : 1916 : 208,320,000 TSIO" 95,450,000 : 1917 : 219,385,000 I917-s *s= -1SS;000,000: : 1918 s> 931. ,055,,000 ' Lote: 160,000,000 : 1919 : 248,382,000 $993 <3) 27253580,000...\: 1920 : 251,820,000 1914. 2). 1655761000. 5 1921 : 216,569,000 LOTS. 2. 775,224°5000 5 - tt Ft 2 EE ee CCcCwuL Growth by Geographical Divisions There has been a very great change in the last 50 years in the relative importance of dairying in the aifferent geographical divisions of the United States. The changes in the population and in the amount of improved land in the different divisions of the country have had an influence to change the extent of dairying and the kind of dairying practised. The population of the New England and Middle Atlantic states has more than doubled in the last 50 years, while the number of dairy cattle has remained about the same. During this same time, the North Central states and the Mississippi River states have made large increases in their population, yet the 28 DAIRY LESSON 1 number of dairy cows and the products have increased faster than the population. Reference to Table XIII, showing the increases in dairy cows by geographic divisions during recent years, indicates the trend of the sectional growth in the dairy cow population. Table XIII. SECTIONAL GROWTH OF DAIRYING, 1915-21 Increase :Decrease 10 Middle Western and Rocky Mountain Staves: > The inability during the war to secure many of the foreign varieties of cheese, induced manufac= turers of this country to undertake the production of cheeses of foreign varieties, and the manufacture of Table XIV. AVERAGE PER CAPITA CONSUMPTION OF CHEESE PER YEAR IN VARIOUS COUNTRIES-~ (Numerous authorities) Cheese Germany...e.-.: 1912 Francé.«ccesees 1892 : New Zealand...: 1914 Norway. eoeecoes 1910 7. 1 : Argent ina=-=b. es 1913 *Census a. Including cottage cheese. b. Factory cheese only Canada.<.cecees LOLI Country : Year : con= ; Country : Year : cone £ ¢ sumed ; 8 ; sumed $ ¢ Pounds : 3 : Pounds Switzerland...: 1914 : 26.4 : Italy.......--: 1913 8 Netherlands...: 1912 : 13.3 : Australia.....: 1915 4.8 Denmark...e.eee: 1914 : 12.3 . United States*: 1919 : a 4.2 United Kingdom: 1905 : ll. : DO* sisiaieisl snout oUp ys ee ce of 2s ee op ef w a Ld © these products is increasing. The total cheese consumption per capita, however, is now less than four pounds. The Consumption of Ice Cream Ice cream is distinctly an American product, and the people of this country consume many times as much ice cream as all the other countries combined. It has increased until now this product uses nearly as much milk in its manufacture as the whole cheese industry or the condensed=-milk industry. Because, however, of the nature of the product and the service required in its distribution, the ice cream industry is greater in value of finished product than either the cheese or the condensed-milk business. The consumption of ice cream has increased gradually and more or less steadily up to four or five years ago, when there was a rather stimulated con- sumption, and during the past five years consumption has doubled in some sections of the country. There is now consumed annually in the United States more than 2 1/4 gallons of ice cream per capita. 32 DAIRY LESSON 1 The Consumption of Other Products The production of canned milk, including both condensed and evaporated, increased enormously until 1919. The increase was largely brought about by the demand for army use during the World War. Since 1919, the production has decreased very materially, due to the decreased demand for foreign use. Consumption in this country, however, has remained fairly constant with slight increases until at the present time a little more than 10 pounds is consumed per person. The same statement may be made of milk powder as of evaporated milk, although the uses for milk powder have increased during the past years, and there is some tendency for its consumption to be increased. Production of milk powder has gone from 20 million pounds in 1914 to more than 50 million pounds in 1920. PART IV THE TREND OF THE DAIRY INDUSTRY The trend of the dairy industry at the present time is toward specialization. Although much of the butter is produced as a side line to general agri- culture, nevertheless there is a general tendency to increase specialization. This is especially noticeable in the eastern part of the United States. Farmers are selecting their cattle and improving their facilities for production and handling, and are increasing the size of the herds. The eastern part of the United States is gradually going out of the manufacture of dairy products; larger amounts of milk are used for direct consump= tion, and less for products that can be shipped long distances. A PICTURE OF THE DAIRY INDUSTRY 335. Improved Sanitation Has Widened the Market Systems of handling and caring for milk are being improved, and the manufacture is becoming standard= ized. These circumstances are having the effect of improving the product and increasing its desira- bility. The sanitary methods being adopted and the safeguards, which include pasteurization, are having their effects upon consumers, and these have widened the possibilities for enlarged markets. From the standpoint of production, the largest opportunity is in increasing the efficiency of the herds. Although the best individuals of every breed are in the United States, yet the average production Table XV. AVERAGE YIELD OF MILK PER YEAR OF DATRY cows IN VARIOUS COUNTRIES sAverage: 5 :Average Country yeni: ‘yield : Country :Years: yield : softy wi Liss : sof milk Netherlands s1902: 7,585 :Norway sE9ol0s) 3,680 Switzerland 21914: 6,950 :Sweden 31911: 3,600 United Kingdom:1914: 5,934 :Japan SOLS soo Denmark 21914: 5,666 s:Hungary :1914: 2,932 Germany S19R2 374.550) shustraLliasloles. 2a719 Canada VL OP sit ol, ekeaLy SLOU4Zs (25279 United States: :1917: 3,716 :Chile SLOG 520 Do 31 920suo, O27 “sotberi a sOG:, 1, 192 of our cattle is low, and since the quantity of pro= duction is the chief factor in economy, the trend is to increase the production per cow as the demand increases, rather than to increase the number of dairy cattle. Production Per Cow May Be Increased Table XV, giving the average production of dairy cows of some of the other countries, indicates the possibilities for increasing the efficiency of pro- duction in this country. Larger Manufacturing Plants for the Future In manufacture, the trend is for larger plants, and greater science and skill in operating them. In 34 DAIRY LESSON 1 the manufacture of butter and cheese, there are large quantities of skim milk, buttermilk, and whey that are by-products. These contain enormous quantities of important constituents of milk, and these should be utilized. The trend is to make more of these products available for food or other purposes. It is not economical to feed them to live stock, from the standpoint of food production and utiliza- tion. Because of the enormous amount of these products, however, they cannot all find a place in our markets at the present time, but demands and new uses for the various products as they are discovered, and the various constituents separated, indicate that these by-products will find a larger place as the industry develops. HOW DOES MANUFACTURING INFLUENCE MILK PRICES? In this lesson you have learned something of the importance of the manufacturing part of the dairy industry. You have a good idea now as to the importance of manufacturing dairy products. And this has prepared you for the next lesson, which is devoted exclusively to a discussion of the manufac-~- turing situation as it now exists. Are dairy manufacturing plants properly dis- tributed throughout the United States? Why is condensed milk made in large quantities in some dairy states, whereas in others very little is made? Does manufacturing stabilize prices, or does it keep the price of milk down? These, and dozens of other vital questions that may already have come to your mind will be answered in the next lesson. It contains some of the most important facts about dairying. Not only is it . important in your study of this course, but you will find it a very interesting lesson. A PICTURE OF THE DAIRY INDUSTRY 55 GLOSSARY OF MARKETING TERMS USED IN DAIRY LESSON 1 balance of trade, The excess in the value of exports over imports. When the United States exports a million dollars worth of goods more than she imports, it is said that her balance of trade amounts to one million dollars. buttermilk powder, The product resulting from drying and powdering wholesome buttermilk. eanned milk, A vulgarism used to mean condensed or evaporated milk sold in metal cans. casein, n. A proteid compound found in milk, which forms the principal ingredient in cheese. centralizer. adj. A word commonly used to describe a large creamery located in some central railroad center where farm separated cream can be assembled from a large territory for manufacturing butter. condensed milk, A product made by evaporating a large part of the water contained in fresh, sweet milk, to which cane sugar has been added. condensery, n. A factory equipped for making ccendensed milk. cream powder, Evaporated or dried cream reduced to powdered forn. evaporated milk, Unsweetened, sterilized, con- densed milk; when sweetened it is known as "con= densed milk". malted milk, A product in powdered form made by combining malt extract with milk and then reducing the mixture to a powder. milk, n. The normal secretion of the mammary glands of animals which suckle their young; commonly used to mean cow's milk; when milk from another animal is meant, the name of the animal is used as, "goat's milk.* milk plant, A building equipped for handling milk. Handling" - in this case includes one or more of the following: cooling, bottling, canning, pasteur- izing, sterilizing, and some other processes. milk powder, Evaporated or dried milk reduced to a powder. 36 DAIRY LESSON 1 milk sugar, The sugar contained in milk}; tech- nically known as lactose. per capita consumption, This phrase is used to indicate the average amount of any product used by each man, woman, and child of any given territory; usually refers to annual consumption. pure bred, adj. A term that describes an animal that is eligible to be recorded in an official herd book. A pure bred animal may have a recorded pedi- gree, and at least both sire and dam are pure bred. Most pure breds have a long list of pure bred ances= tors. Animals not having both parents pure bred can never be the ancestors of pure breds unless a new breed is started. In other words, pure breds cannot be made by a "grading up" process. scrub cow, A cow, neither of whose parents is pure bred. semi-solid buttermilk, A product produced by the removing of part of the water from buttermilk. The resulting product is a paste shipped in barrels and used for feeding live stock. separator, n. A device for separating cream from milk by mechanical means. Separators operate on the centrifugal principle and are commonly known as centrifugal separators or cream separators. The same device with modifications may be used for separating other liquids, especially liquids con- taining oily substances that are to be removed. standardized milk, Milk that has been mixed with cream, Skim milk, or with other milk to procure a product with a uniform percentage of butter fat. It may be made uniformly richer or less rich. sterilized milk, Milk in which all living organ=- isms have been destroyed by heat or other means. The product is often prepared by hermetically sealing fresh, whole milk in cans. The milk is then boiled under pressure. whey, n.- A clear, straw-colored liquid consisting of protein, mineral matter, water, and milk sugar that remains after casein and other ingredients in milk are removed in the production of cheese. whole milk, n. Milk as it is drawn from the cow; as differentiated from skimmed milk, buttermilk, etc. 12-22-2M-6 a @ 000 895 2814