PACKERS AND STOCKYARDS ADMINISTEATION. 677 



RANGE-CATTLE MARKETING PROBLEMS. 



The range-cattle industry has many problems peculiar to itself. 

 Its marketing is a distinctly seasonal business. While shipments 

 extend from July to December, over three-fifths of the total supply 

 is usually marketed in September and October of each year, and over 

 hfteen-sixteenths is marketed in the four months from August 

 to October, inclusive. That the aggregate movement of westerners 

 is a large one is evident from the fact that Chicago alone has re- 

 ceived an average of 257,000 head a year of this class of cattle. 



During September, 1922, complaints were received concerning 

 prices paid to producers and other matters relating to range-fed 

 cattle in the central markets. A careful investigation was under- 

 taken to get the truth as nearly as possible for the benefit of all 

 concerned. Typical lots of western rangers were traced through 

 the stockyards, packing houses, and distributing branches of the 

 packing companies, and, in addition, all other readily available 

 sources of information were canvassed. It was found that while 

 1922 prices were below pre-war levels, they were higher than in 

 1921, indicating a trend in the right direction; that while packers 

 do on occasion buy the whole of a large shipment, they do so un- 

 willingly, stating that each can dispose advantageously of only a 

 relatively small percentage of beef from grass-fed cattle; that the 

 large packing companies are the principal outlet for westerner, 

 the four largest companies taking 59 per cent in the typical period, 

 leaving only 41 per cent for all other packers, yard tradere, and 

 feeder buyers ; that wherever comparison was possible between prices 

 paid by packers and feeder buj^ers taking parts of the same drive, the 

 killer end brought better prices than the part destined for the feed 

 lot; that both feeders and packers discriminate against horned 

 rangers, because of difficulty of management, bruises, and retardation 

 of gains if dehorned after purchase by the feeder; and that dressing 

 percentages, shrinkage, and quality of product naturally favored 

 corn-fed animals. 



The information obtained was taken directly from the packer's 

 records, taking into account the methods followed in making inter- 

 departmental transfers, fixing market prices, etc. 



Nine lots of range and two lots of corn-fed cattle were traced 

 through. There were 3,228 head in all, but it was possible to follow 

 only 778 all the way. Seven hundred and three of these were 

 rangers. Seven lots of the latter showed losses and two gains. 

 One lot of corn-fed steers showed a gain, the other a loss. The aver- 

 ages of both classes are indicated by the following summary : 



Average. 



Range 

 cattle. 



Dressing, per cent 55. 9 



Shrinkage, per cent 2. 7 



Dressed cost per 100 pounds i $11.17 



Selling price per 100 poxinds 11. 40 



Loss per head ! 3. 47 



Corn-fed 

 cattle. 



60. 7.5 



1.9 



$14. 70 



17.97 



1.05 



A wide distribution was obtained for the meat from the range 

 cattle. This assured average market conditions. In one case 97 



