The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1929-08-08

In the early Spring the Markets
Committee of South st. Paul Of
fered several cash prizes for the
best essay submitted on the desir-
ability of cooperative handling of
live stock. The first was won by
q lady from Dover, Mimi. 1t is so
practical that the Herald publishes
1t in full herewith:
The little pig that went to market
was the forerunner of the most de-
pendable and profitable agricultur-
al industry in the Northwest. Most
farmers make their livestock the
basis of their farming.
The marketing of livestock is a
subject worthy of their deepest
study. Every man feels the grave
concern and serious consideration
necessary for this important por-
ton of his business.
Also, the producer of livestock IS
now called upon to decide whicn
system, terminal market selling or
direct buying, shall be adopted. The
answer is in the farmers hanos
and he casts his vote every time
he sells his livestock products. His
decision must DE based upon the
effect of these two systems on his
business. To this end he devotes
his time to discussion of the re-
spective merits. The farmer real
ICES that little study before sell
ing is better than large loss after
the sale is made.
A successful marketing system
should be adopted to it's product,
The demands made upon live
stock market are: first, to set the
price to be paid and, second, to
provide for the products pecull-
arities, which, generally speaking
is lack of uniformity in many diff
ferent ways.
The price to be paid must rest
upon the law of supply and demand
This law is but a statement of the
relation of supply, demand and
price. In effect it is this: with
large supply or a comparatively
small demand the price falls. II
supplies lessen or demand increas-
es, the price rises. This truth is
always demonstrated in livestock
marketing. If there is a surplus
of supplies, the price lowers. If,
on the other hand, supplies are
scarce, the price rises, not only
from year to year but from week
and even day to day depending on
indications as to supplies and de-
mand. While this law effects all
t-siness, most industries can reg
ulate the supply of goods and thus
hold the price steady. Producers
of livestock cannot regulate their
supply. They work Independent of
each other. Producers rightly in
sist that if they cannot influence
the price for their interests, no
other group should regulate it for
that groups interest; but, that
price should be established by let
ting supply and demand operate
freely. The measurements must
be accurately determined, as far as
is possible. This procedure is alb
solutely necessary in marketing
system if the producers interests
are 10 De projected.
The other essential of a market
ing system, that it recognize and
provides for the products peculiar
tiles, is just as necessary. There
is lack of uniformity in livestock
all along the line. The supply var
les from day to day; the quality is
not uniform. There is shrink and
fill to be considered. Any system
that ignores these matters is un.
sound. Because packers find quail.
ity stock is worth more to them
there should be CORRESPONDENCE
higher price paid to the producer.
In order to treat each producer
fairly, his stock must be graded or
an established standard. Uniform
allowances must be made for shrinh
and fill. A marketing systems
ability to prevent gluts one day
and shortage the next and thus
stabilize the fluctuations, is one OF
the measures of it's worth.
In caring for variations, the val
NE of competition cannot be under
estimated. It is the only method
by which fair value can be es
tablished. 1t is only natural fol
a buyer to bid as low a price as
he can. If he is alone, the price
stays. If he bids against Other
buyers, he must go higher thar
what he first considered the lo
is worth. Competition whips up the
price to its proper level. Lack of il
puts the price at whatever one buy
er wishes to pay.
With the all important factors O.
price and variations, a considera
ton of the terminal market is il
order. In effect, terminal mar
ket is a central selling service fol
the shipper. At this market, pack
er buyers, order buyers, feeders, OF
anyone in the market for stock
are congregated.
The hogs are received by an ex
pert salesman, graded and then of
ferred to the assembled demand
Finally they are sold to the high
est bidder. Standard grades, nat
ural competition and the paid ex
pert sales service, combine to guar
antee the shipper fair satisfac
tory price.
This system has the price estab
1ished by the following method
the number of pigs or cattle bough
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