460 IOWA DEPARTMENT OF AGRICULTURE 



do not bring higher average prices or a higher total price. It cannot be 

 shown that they force the packers to pay more for the hogs they buy, but 

 only that they force them to pay more for some kinds which is offset by 

 a less price for other kinds. Nor can it be shown that the profits from 

 their operations are extracted from the packers for the evidence both 

 practical and theoretical is opposed to this; and if it is not taken from the 

 buyers it must be finally taken from the producers, and there is no doubt 

 in the speaker's mind that here is where it is taken. How large a tax 

 this is, there is no way of determining, but from the numbers engaged in 

 it, on the whole it must be rather profitable. Not only in itself, but in the 

 resultant relations it develops with the selling organizations, it is obnox- 

 ious and ought to be abolished. 



It is apparent, then, that the marketing of hogs offers more opportu- 

 nities for changes from the present methods than does that of cattle. 

 The latter will probably always have to be handled to a large extent on 

 a consignment basis, and sale will have to be on inspection. But the 

 necessity of this in the case of hogs is not so apparent, and there are very 

 good reasons why they can be sold largely by description, as they are 

 at the present time to some extent. Of all marketing methods, that of 

 consigning to be sold at what temporary conditions determine as the 

 price, is the most unsatisfactory, and wherever feasible attempt should 

 be made to get away from it. So improvements in hog marketing should 

 be in the direction of getting away from the consignment method. At 

 least shippers should be given the alternative of selling at a known price 

 or of taking the chances of the open market as they may choose in the 

 same way as grain shippers can. Also the increase in freight rates has 

 become a permanent large addition to marketing costs, and all possible 

 methods should be sought to reduce these charges. Wherever eastern 

 shipping hogs can be sent thru on a single rate, the difference is a gain 

 for the producer so that the further use and development of concentrating 

 points may be advisab.e. Some method of buying on bids, either on 

 track or to-arrive, should be generally established and made a regular 

 practice in the trade. Another promising factor in the hog situation is 

 the growth of the country packing plants and the direct market they offer 

 for local hog supplies. Their encouragement (but not to the extent of 

 buying stock in promotions of them) is desirable, as is also the establish- 

 ment of better relations between them and the actual producers. 



From the foregoing, it is plain that the problem of finding the best 

 methods of marketing Iowa livestock is no simple one and is not one that 

 can be solved by any patent medicine formulaes for marketing nor by any 

 one great panacea. Each kind and class of livestock will have to be stud- 

 ied by itself both on its production and consumption side and then in its 

 relations to other kinds, and as far as possible the marketing be organized 

 on a commodity basis. The growth of cooperative shipping is a move in 

 advance, aiming to give the producers the control of the local marketing 

 machinery, but it has brought with it changes both in the country and 

 at the market that need be taken into account. 



It has brought about a considerable change in the relationship betweeu 

 the country and the central marketing machinery. Formerly, when the 

 stock now marketed thru the cooperatives was handled by local shippers. 



