The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1921-09-23

ment OF Agriculture.
From 26 local egg circles which left
the problem still unsolved, to a state
wide egg-marketing association with
central Offices in Portland, is the step
taken by poultrymen in Oregon in
solving the egg-marketing problems.
The story, officials of the bureau Of
markets and crop estimates Of the
United States Department of Agricul-
ture believe, points a lesson for egg
producers in other parts of the
try. Recent reports Of the success
OF the association were received by
them with much interest, as being an
outgrowth of community egg circles
along lines advocated by the depart
ment.
Egg circles, they say, are good to
start small groups of producers along
the right course, but do not solve the
larger egg-marketing problems, for as
soon as Il circle grows to such a size
as to handle a half carload of eggs
it becomes q real business PROPOSE
ton.
Handle Eggs for Few Producers.
The circles in Oregon were organ
lied in the leading poultry-prOducing
sections and each operated independ-
emily of the others for Il while, sell
ing their eggs TO Portland produce
dealers or to private customers, such
as hotels and restaurants. They
found however, that they were still
helpless and had very little control
over their products. Some eight or
ten circles near Salem co-operated
through the Salem circle manager,
but the business was so small ii was
not very encouraging. Things went
from bad TO worse, and it was de-
cided to form an exchange with OF
fees in Portland to which all the cir
cleS could consign their eggs
This was ridicuIed by produce
dealers, for they knew the farmers
were not under contract with the cir
cleS or the exchange; the dealers.
therefore. would be able to Obtain their
supply Of eggs 10y Offering higher
prices at the country buying points
than the exchange could realize on the
market. During the egg-Storage sea
son some of the firms paid more in
the country, and, as they predicted, the
exchange practically failed. and it
appeared for a time that cooperation
in the poultry business was at an end
in Oregon.
A study wGS made of the Poultry
Producers association of central Cal
ifOrnia, which was more successful,
and as a result after a years effort.
the Oregon producers launched forth
again to do their own business on a
new basis. A statewide member
ship campaign was undertaken, and
the producers were asked TO join the
association and sign q three-year con
tract, or marketing agreement, where
by their whole production was to
he delivered to the association 10 be
marketed. These contracts and the
storage Of surplus production during
the storage season placed the aSSOcia-
ton in position TO be an important
factor in the Portland market.
liiO '" SldbIlIS. DdNh-
ing and Standardization were adopted.
and all eggs are now candled and
graded into three classes. Those
which are OF the finest quality are
put under the Diamond brand. while
No. 2's, which contain off colors, un-
dersized and off-shaped eggs, are grad
ed out No. 3s are sold to the bakery
trade. The business during the year
was expected TO reach a volume of
approximately 2,0OO.000 dozen.
During the present season the as
ISOLATION has shipped several cars
each week to eastern markets, thus
keeping the Portland market clear of
surplus and i'm a stable condition.
The success of the association has
been so great and the increase in
business so rapid that as recently as
February no new members were being
admitted. although applications at the
rate of 80 a day were received. The
reason for closing the membership
temporarily was that they were stor-
ing eggs and the finances of the as
ISOLATION did not permit handling adj
ditional supplies from new members.
Organized on Cooperative Basis.
The association is organized on a
cooperative basis. with both common
and preferred stock. Each member is
obliged to purchase a so share OF
common stock for each lW hens or
! fraction thereof. The preferred stock
! carries no vote and is limited TO an 8
per cent cumulative dividend. Some
$4,000 preferred stock has been SOLD
and is being retired by n levy OF one
| >nlf cent on each dozen eggs. The
peratin" expenses Of the association