The Ward County independent., 1922-11-30
Cooperative Marketing Made
Line" Many Poultry

Prepared by the United States Depart
ment Of Agriculture.
From 26 local egg circles which left
the problem still ulsolved, to u state
wide egg-marheting 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 coun-
try. Recent reports Of the success
Of the association were received by
them with much interest, us 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-marketin; problems, for as
soon as a circle grows to such size
as to handle half carload Of eggs
It becomes a real business PROPOSE
tion. yss1sasasrss.saa> TX, i t. %.
Hand'e Egg. ter Few Producers.
The circles In Oregon were organ
lied in the leading poultry-producing
sections and each operated independ-
emily Of the others for a 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 1t 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 consigD their eggs.
This move was ridiculed 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 by 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 time that cooperation
in the poultry business was ut an end
in Oregon.
A study was made of the Poultry
Producers association Of central Cal
i1I, sf,I
and as a result after 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 a three-year con-
tract, or marketing agreement, where
by their whole production was to
be delivered to the association to 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.
Modern methods of grading, pack
ing and standardization were adopted,
and all eggs are now, candled and
graded into three classes. Those
put under the Diamond brand, while
No. 2's. which contain Off colors, un-
dersized. and off-shaped eggs, are grad
ed out No. 3's are sold to the bakery
trade. The business during the year
was expected to reach volume OF
approximately. 100000 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 In 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 ad-
ditiOnal supplies from new members.
oroanizef on Cooperative Basis.
The association is organized on a
cooperative basis, with both common
and preferred stock. Each member Is
obliged to purchase a $40 share Of
common stock for each 100 hens or
fraction thereof. The preferred stock
carries no vote and is limited to an
per cent cumulative dividend. Some
$4,000 preferred stock has been sold
and is being retired by levy of one
half cent en- each dozen eggs. The
operating eST'enses Of the association