S, 1923 



Nov. 5. 1923 



The IIEnou Agricnltaral AwodatioB Record 



|l|-t I 



i 



4 



Here Is Aim and Plan of 

 Commodity Marketing 



It was the same story, the 

 story of commodity marketing 

 that Walton Peteet, James Stone 

 and Aaron Sapiro told at the 

 district conferences. 



Mr. Peteet, Marketing Director 

 of the American Farm Bureau 

 Fe d e r . t i o n 

 spoke at all but 

 one conference 

 and led the 

 marketing dis- 

 cussions. A t 

 Springfield and 

 Centralla, M r. 

 Stone, President 

 and Manager of 

 the Burley Co- 

 operative Asso- 

 ciation of Lex- 

 ington, K e n- 

 Walton Peteet tucky, told how 

 commodily marketing is solving 

 the problems of tobacco growers 

 of the south. 



At the Peoria conference. 

 Aaron Sapiro, Attorney (or a 

 number of organizations, includ- 

 ing the marketing department of 

 the American Farm Bureau re- 

 lated the results of commodity 

 marketing in California. 

 To Merchandise 

 The aim of cooperative market- 

 ing is to merchandise, the three 

 speakers said in one way or 

 another. It is to stop dumping 

 crops en the market without 

 knowledge of the supply, demand, 

 absorbing power of markets, and 

 grade of product. 



The first of the six steps in mer- 

 chandising is to grade and stand- 

 ardize the product. In the next 

 issue of the Record will be a story 

 about what standardization has 

 done for the Quincymilk coopera- 

 tive. Manager Leeper of the Illi- 

 nois Fruit Exchange says grading 

 is one of the most important things 

 in fruit marketing. Mr. Sapiro 

 says we sell wheat on Govern- 

 ment grade while the miller buys 

 on its gluten content. 



To have the right kind of pack- 

 age is the second step. This 

 point don't mean so much when 

 it comes to grain and live- stock, 

 but it has significance in the mar- 

 keting of eggs, fruit, butter and 

 other products that go direct to 

 the consumer. 



Extend Markets 

 The third step of merchandis- 

 ing is to extend the market. The 

 Fruit Exchange is selling apples 

 in many states where they never 

 gold before. The Quincy milk 

 company extended its market by 

 Belling milk to factory workers 

 and to the schools. 



To get people to cat more is 

 the next thing. That means we 

 should be interested in selling 

 two bottles of milk in the place 

 of one to a family. 



Control Flow of Product 

 We must control the flow of 

 the product so no market will be 

 glutted and no market will have 

 a famine. In other words we 

 don't want a big run of livestock 

 on the market today that breaks 

 the price and a famine tomorrow. 

 Mr. Sapiro said 70 per cent of 

 the wheat crop is sold in 60 days 

 ,and he added that it is rotten 

 merchandising. 



The last of the six points of 

 merchandising is to make the 

 price at the point of consumption 

 and not at the point of produc- 

 tion. We should our own grain 

 until we sell it to the miller 

 rather than selling at home. 

 When we sell at home it goes in- 



to the hands of other, people and 

 the opportunity of merchandising 

 is lost. 



These six things are the aim of 

 cooperative marketing. Mr. Pe- 

 teet said the aim of cooperative 

 marketing is not intended to fix 

 prices or hold for high prices. 

 Binding Contracts 

 A long time binding contract 

 with growers calling for the de- 

 livery of their crop to the asso- 

 ciation is the very heart of the 

 plan all three men stated. It 

 holds the man that might sell for 

 a few cents higher to a competi- 

 tor who is trying to break the co- 

 op. It makes possible the borrow- 

 ing of money so growers can be 

 advanced a share of the .price 

 immediately. It gives the asso- 

 ciation title of the product so it 

 can merchandise. It assures the 

 organization that it will have the 

 Ifroduct to do business witii. 

 How To Do It 

 The first principle of organiza- 

 tion is to organize by the com- 

 modity and not by locality. If we 



are ever going 



to sell grain so 

 we will not 

 have gluts and 

 famines, all the 

 growers of 

 grain in the 

 country must 

 be organized or 

 tied together 

 in one organiza- 

 tion. Now every 

 grower sells 

 when he gets 

 AaroB Sapiro ready. All of 

 the farmers' elevators sell with- 

 out knowing what other elevators 

 are doing. One little elevator 

 for one little locality cannot mer- 

 chandise grain. When the whole 

 commodity is organized together 

 there is opportunity to merchan- 

 dise. 



Cooperative association should 

 be organized not for profit with 

 democratic control, all three men 

 said. 



Pooling 



Pooling by grades and quality 

 is another principle of organiza- 

 tion. In the burley tobacco asso- 

 ciation all the tobacco of one 

 grade is pooled together, and 

 every man in theDool will get 

 the same price. Without the pool 

 the problem arises of whose to- 

 bacco will be sold today on the 

 good market and whose a month 

 from now on a poor market. 



This is the commodity plan of 

 cooperative marketing and is the 

 plan used by burley tobacco grow- 

 ers, by cotton growers and by 

 practically all of the Cooperative 

 associations of California. 



Tunt In On These! 



Here are the Farm Bareaa 

 Radio programs (or the aext 

 three Taeadar evenlaira. The 

 tlaie has been aet peraiameat- 

 Ijr at 8i01 p. at., (roiB Statioa 

 KYW, Chleaso. 



Tnradaj, >'ov. 6, Joha G. 

 BrowB. prealdeat of the Na- 

 tioaal Live stock Prodncera. 

 will apeak oa "Orderly Mar- 

 ketlagr of I.lve Atoek.** fol- 

 lowed hr E. B. Heatoa. Dairr 

 MarketlaK Speclallat of the ' 

 A. F. B. F., with the aaHleet, 

 "A Bottle of Milk." 



E. C Thleat. aeeretary of 

 the IlllBoU Molatela-Frlealaa 

 Aaaoelatloa, will be the llrat 

 apeaker Taeaday evealafr, 

 Nov. 13, with the anbject, 

 "Exit the Serah." laaaiedlate- 

 17 followlBS. H. W. Moor- 

 koaae, Reaeareh Director of 

 the A. F. B. F., will talk oa 

 "Price FlalBS.** 



Ob IS'ov. 20, C. B. RBtehlaa. 

 of the Natloaal Traaaporta- 

 tioa laatltBte, aad R. C. Pol- 

 lock. maBajrlBpr director of 

 the National l.lve fftocfc aad 

 Meat Board, will talk. Their 

 aubjecta have aot beea aa- 

 Boaaeed ret. 



APPOI.VTED FIELD MAN 



F. H. Kelley, farm adviser of 

 Edwards county, will take up his 

 work as field man for the St. 

 Louis Producers on Nov. 5, hav- 

 ing been hired by the I. A. A. 

 Live Stock - Marketing Depart- 

 ment. He will be financed by 

 the selling agency and will travel 

 in all the Illinois territory which 

 is tributary to the St. Louis mar- 

 ket. 



GALLATIN TO REORGANIZE 



The Gallatin County Farm Bu- 

 reau has made arrangements with 

 the I. A. A. Organization Depart- 

 ment to start its three year reor- 

 ganization campaign on November 

 10. The township unit plan will 

 be used. 



RULES JkNNOUNCEO 

 FOR CERTIFICATION 

 OF FARM FLOCKS 



At a meeting in Springfield, 

 Oct. 27, the committee in charge 

 of poultry flock and hatchery 

 certification formulated rules 

 specifying requirements which 

 flocks and hatcheries must meet 

 in order to be accredited. 



This committee is composed of 

 D. E. Hale, Chicago, chairman; J. 

 D. Harper, assistant secretary of 

 the I. A. A.; C. P. Scott, chief of 

 poultry department, Illinois De- 

 partment of Agriculture; L. E. 

 Card, head of U. of I. poultry de- 

 partment. Miss Dorothea Rainey, 

 representing the hatcheries; and 

 Lyle Funk, representing the 

 breeders. 



Rules 



Any poultry flock supplying 

 eggs to an accredited hatchery 

 must meet and maintain the fol- 

 lowing standards and require- 

 ments w>hich are hereby officially 

 prescribed. 



1. No breeding birds other than 

 those passed by an authorized in- 

 spector shall be Icept in these flocks 

 during the hatching: season. 



2. All birds must be pure bred. 



3. Only one variety shall be al- 

 lowed on a farm, unless, where 

 more than one variety is kept, am- 

 ple provisions have been made to 

 keep these varieties and their eggs 

 separate. 



4. Each bird must conform in a 

 reasonable degree to the standard 

 for the breed and variety as set 

 torth in the American Standard 

 of Perfection. This shall be con- 

 strued as meaning that no birds 

 decidedly off type or color or dis- 

 qualified specimens shall be al- 

 lowed to remain in the flock. 



Egg ProdaetloB. 



5. Each bird must conform in>a 

 reasonable degree to the standard 

 for high egg production as set 

 forth by the Poultry Division- of 

 the College of Agriculture of the 

 University of Illinois. It is sug- 

 gested that every flock owner keep 

 a record of the daily egg produc- 

 tion of the flock. 



For the season of 19S4 this shall 

 be construed as meaning that fe- 

 males shall have medium length 

 heads, prominent eyes. deep, rec- 

 tanguar bodies, soft and pliable in 

 the abdominal region. No extreme- 

 ly small or unusually large coarse 

 birds or those lacking in strength 

 and vitality shall be passed. Males 

 should be quick maturing, medium 

 size for the breed and show vitality 

 as indicated by the head and body 

 shape. 



Diaeaaed Birds. ^ 



6. Tf disease should develop dur- 

 ing the breeding season, the affect- 

 ed birds shall be immediately re-^ 

 moved from the flock. 



7. Each male bird ;and female 

 shall be sufficiently matured at 

 the time of inspection to reach' 

 with reasonable care full growth 

 and maturity by January 1. preced- 

 ing the hatching season. 



8. Close i-ntireedlne: shall not be 

 practiced and a statement of the 

 name of the breeder and the known 

 blood lines of all males shall be 

 /nade to the inspector. 



9. Each bird passed by the in- 

 spector will be banded with a 

 sealed numbered lee band fur- 

 nished at cost by the r>fvlsion of 

 Standardization and Markets. 



10. When the flock meets the 



) 



Stone Tells of 

 Co-op Tobacco 

 Merchandising 



"I was a speculator for twenty- 

 five years," said James C. Stone, 

 President and 

 Manager of the 

 Burled Tobacco 

 Growers' Coop- 

 erative Assocta- 

 t i o n , at the 

 Springfleld and 

 Centralia c o n- 

 ferences. 



"In 19 19 1 

 sold 4 2 acres 

 of tobacco for 

 $46,000 and the 

 next year that 

 Jamr* stoae g^me 42 acres 

 lost me |14, 000. It was too much 

 for me. No business can stand up 

 under such fluctuations. It is 

 the thiAg that brought coopera- 

 tive marketing of burley tobac- 

 co." 



FVoni 12 to 21 Cents 

 "In 1920 the price of tobacco 

 was approximately 12 cents a 

 pound. The first pool of the as- 

 sociation in 1921 averaged ap- 

 proximately 21 cents a pound. 

 Of the BOO million pounds in the 

 1922 pool, 155 million pounds 

 have been sold and my judgment 

 is that the average price to grow- 

 ers will be twice as high as the 

 1920 price. The whole overhead 

 cost of the association in the 

 first year was $1.55 per hundred 

 pounds. Of that amount 30 cents 

 was for the purchase of irare- 

 houses and is an investment 

 rather than a cost." 



"The greatest thing we have 

 in the Burley Association is the 

 Social Service Department which 

 works with the growers in the 

 field. The aim of cooperative 

 marketing is to first get a fair re- 

 turn for the product, but after 

 all the final result is in bow that 

 money is spent. 



The Valley Cabin 



"On the hill there is a mansion 

 and there lived the landlord fami- 

 ly with all the refining influences 

 that money could buy. In a cabin 

 in the valley the tenant family 

 lived, toiling out a meager .4ivlng 

 in the tobacco fields — mother, 

 kids aad all. It |s wrong. You 

 can't make good citizens out of 

 that condition." 



P«t*S 



NO RAISE WANTED 

 IN FRUIT RATES, 

 DECLMS I.A.A. 



Traffic Department Enters 



Protest In Complaint 



Made Before I.C.JC. 



The I. A. A. Transportation De- 

 partment is representlirg , the in- 

 terests of Illinois shipper^ in pro- 

 testing a possikle raise |in fruit 

 and vegetable rates in the sute 

 as a result of the c^inplaint 

 brougkt before the Itterstate 

 Commerce Commission i by the . 

 Indiana Public Service Oommla- 

 sion against the Baltituore ft 

 Ohio and other railroads, 



The complaint charges that 

 rates on fruits and vegetables 

 from points in Indiana 1)0 Chica- 

 go are unreasonable and unduly 

 indiscriminatory to shippers from 

 that state in comparison with 

 rates paid by Illinois shippers. 



"We are trying to prel^ent any 

 raise in rates for fruit a(nd vege- 

 table producers of sotittiem Illi- 

 nois," states L. J. Quase^-, Direc- 

 tor of the Transportatioa Depart- 

 ment. "We do not obje«;t if the 

 Indiaaa rates are lowered, but we 

 do protest any raise in otir rates. 

 Although the railroads are de- 

 fendants in this case, they would 

 welcome an increase in Illinois 

 rates, be<;ause , they hate made 

 attempts in the past to b^ve them 

 raised." j 



Mr. Quasey says thatj present 

 economic conditions amoilg south- 

 ern Illinois fruit growers 90 not 

 warrant any increase in rates on 

 fruits and vegetables and would 

 hinder development of tke indus- 

 try. 



Ite also states that ^t present 

 rates have l>een in ^«et (or 

 many years. 



above requirements an inspection 

 certiflcite Is Issutd to the flock 

 owTier. 



Trade-Mark 

 The Illinois Department Of Ag- 

 ricultulre has designed ant will 

 furnisi a distinctive trade-mark 

 to be Used on Illitiois chides pro- 

 duced j by accredited hatcheries 

 subject to the following regula- 

 tions i which are' hereby pre- 

 scribe!^: 



1. Oiily chicks hatched from eggs 

 produced by accredited hatchery 

 flocks rnay be sold under the State 

 Trade-Mark. 



Oraoes of chirks shall be recog- 

 nized as follows; 



Oracle A: Chicks from flocks 

 meetinfe the foregoing - require- 

 ments.} 



Grade AA: Chicks from flocks 

 that ill addition to meeting the 

 foregoing requirements have been 

 accredited by the State Veterinar- 

 ian aS being free from Baciliary 

 White IDiarrhea. Additional grades 

 based on production records will be 

 recognised later. 



iBSveet Chlcka. 



2. Chicks must be carefully In- 

 spected at the tlTne of shipment 

 and viust be normal. Delayed 

 hatch^. "helpouts." premature 

 hatched, partially absorbed yolk- 

 sacs, weak, deformed, crippled, fed. 

 waterSd. chilled, or chicks Inpured 

 in anjj other way -eball not be sold 

 under J the State Trade-Mark. 



3. Chicks over forty-eight honrs 

 old slnll not be sold under the 

 State fTrade-Mark. 



4. Off-color chicks not represent- 

 ative [of the varletv shall T>ot be 

 sold tinder the State Trade-Mark. 



5. Nio chicks shall he sold for 

 resale as dav-old chicks under the 

 State Flrade-Mark. 



s frr 



Inspection Law 

 Backed By I. A. A. 

 Is Working Well 



That the grading 'and inspec- 

 tion service of the Illinois De- 

 partment of Agriculture is func- 

 tioning well for the keneflt of 

 growers is shown in the follow- 

 ing examples oited by H. W. Day, 

 Supep^ising Inspector ot the Di- 

 visiob of Standardization and 

 MarkeU. 



In one case, two growrers who 

 lived 10 miles apart eadh shipped 

 15 to 18 cars of peacfaies during 

 the season, the quality being ap- 

 proximately the same. Both sold 

 throtigh the same broker. One 

 used the state grading and in- 

 spection service. The other did 

 not. ^ 



Tke grower who used the ser» 

 vice averaged about 20 cents 

 more per bushel for his entire 

 crop than the other grower. The 

 reason was, states Mr. Day, that 

 the graded and inspected ship- 

 ments were sold on the basis of 

 government inspection certificates. 



In another case, a grower 

 shipped a car of peathes from 

 Centralia to Memphis. Tenn. The 

 car Was inspected at the shipping 

 point. The market on peaches 

 dropped while the car was en 

 routfe and the buyer wired back 

 on teceipt of the shipment that 

 it was not up to grad% and asked 

 for disposition of car. 



The shipper ordered the car 

 reinapected in Memt^hls and it 

 was found up to grade as, re- 

 ported. The bhyer took the car 

 witkout further argument. 



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