Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-10-13
FARMERS GET BIG
END Of MEAT PRICES
FEDERAL INVESTIGATORS EXON
crate PACKERS FROM CHARGE
OF BOOSTING PRICES.
RETAILERS MAKE MUCH
LARGER PROFIT ON SALES
Inquiry Shows Retailers Receive 8 to
SO Per Cent and Packers Only 2 to 9
to IS Per CONFIDENTIAL Markets
Handle Bulk of Stock.

| Will $pSb'
experts. after q year DEMONSTRATION
into the live stock and Sleat markets
as to the relative cost of different fac
tors or steps in marketing animals and
proportions of final prices reaching
farmers and other parties to trans
actions, both thru centralized markets
and where the animals were disposed
of locally, have reached these conclu-
| Sions:
In the centralized markets the farm
ers' share of the gross returns ranged
from "a per cent to So per cent, while
from per cent to 5 per cent went TO
pay market expenses, per cent to 9
per cent to the packers and s per cent
to 3S per cent to the retailers.
In the local sales from 81 per cent
| to 81 per cent of the gross returns was
received by the farmer and Is per cent
TO 3S per cent by the retailer.
Central Sales Bring Most.
The detailed figures indicate, how
ever. that even when account is, TAX
en- of the fact that lower grade stock
is sold locally the returns from such
sales are not as great relatively as
those from sales thru centralized mar
kets.
The Investigations covered the lead
ing markets of the country. The spe-
ciahsts, under the direction of A. D.
Melvin, chief of the bureau of animal
industry, and G. J. Brand, chief of the
bureau OF markets, traced several typi-
cal lots of beef cattle from producer
to consumer. The studies were made
in 1914, but Melvin and Brand believe
the results apply with accuracy to
present conditions.
Three Marketing Methods.
The three general methods of mar
keting found 10 be in most common
use, says the report, are shipping to
the large centralized markets. selling
10 local butchers ana packers. and the
sale OF farm prepared meats 70 dealers
or consumers. The bulk of the ami
mails from the central states is sold
thru the centralized markets, while
some form of a local marketing pre-
dominates il the extreme eastern.
western and southern sections.
The great central markets handle
four-fif of the sheep and lambs.
two thirds of the hogs and approx
mately one half Of the beef cattle. For
local slaughter, about one-t third of the
beef cattle. one-eighth of the sheep
and lambs and one twelfth of the hogs
are sold. Nearly one-third of the hogs
and about one-t tenth OF the beef cattle
and one-twentieth of the sheep and
| lambs are slaughtered on farms and
ranges.
Cooperation Big Factor.
81 Ia
raisers are becoming an important fac
tor in market. the report shows. Seven
hundred and fifty organizations which
market cattle in a cooperative way
now exist in fifteen states.
The department specialists declare
that these associations bring greater
returns to the farmers because of re-
duction of marketing expenses and the
realization of the prevailing prices at
the centralized markets, and that they
are also valuable because of their ed
ucational features.
The chief outlet for food producing
animals in this country. the study dis
closes, is wholesale slaughter and meat
packing. More than 200 slaughtering
and meat-packing establishments were
operating in the United States In 1914
and turned out products worth ST.
65l, ,424.
Buy Direct Of Producer.
Packing establishments buy direct
Iy from the producer in California to
a greater extent than in any other
state or section. This practice. which
in the opinion of the specialists will
continue to be important in those parts
of the country remote from centralized
markets, is most characteristic of the
western group of states in general.
There is a decided difference of
opinion among producers market men
and packers as to the effects of this
practice in sections supplied with cen
trail markets on the general market
prices of live stock and on the pros
perity of cattle raisers.