own farms for holding' replacements for sale to individual farmers as the 

 market develops. Small dealers frequently sell to other dealers, particularly 

 when consolidating several small lots into one truck load. 



*t> 



Table 11. Disposition of Livestock by Dealers Only in New Hampshire for 1952 



Market Percent 



Brighton 42 



Packers 31 



Other dealers and auctions 8 



Local 19 



Other Sales Outlets 



There is one commission house in the State of New Hampshire which 

 handles sales on local and Brighton markets. One or two dealers sell 

 on commission, but the majority consign livestock for sale outside the state 

 either to the Brighton Stockyard Commission House or a commission man 

 selling on the Brighton market. Auctions play a minor role in cattle, hog, or 

 sheep sales. Some producers use Vermont auctions to buy or sell replace- 

 ments. Home use accounted for about 2,000 head of cattle and 7,000 hogs. 

 Sheep and lambs are sold locally or in specialized seasonal markets, such as 

 at Easter and for certain religious groups. 



Prices and Price Formation 



Modern communication and transportation serve to bring prices of 

 similar products into line on all markets. The difference in price between 

 two markets will not remain for very long more than the cost of transpor- 

 tation between the markets. If, for example, the price on one market is 

 higher than on another market by more than it will cost to ship from one 

 market to the other, then produce will move to the higher price market until 

 prices are brought into line again. 



There may be some obstacles to movement, such as sanitation and in- 

 spection laws or the buying and selling practices of large firms. Under 

 competitive conditions, however, prices in one region bear a close re- 

 lationship to prices in other regions. 



The influence of prices in the surplus meat producing areas of the West 

 and Midwest is pronounced in New England. Local production is only a 

 small part of total consumption here. To satisfy a total annual per capita 

 consumption of 140 lbs. of red meat, New Hampshire produces an equiva- 

 lent of about 20 lbs. A similar situation exists in Massachusetts. Large 

 quantities of dressed and live animals are shipped in from Midwestern 

 markets. Prices in New England are tied closely to the predominant price 

 for western beef at Chicago. 



Price Relationship between New England and Chicago 



The majority of livestock sold on local markets and in Brighton is 

 cutter- and canner-grade cattle, bob calves, and some garbage fed hogs. 

 Therefore, price comparisons can be made between the lower grade cattle. 

 For example, an increased supply of low-grade cattle from the West will de- 

 press prices at Chicago. Packers and slaughterers in New England have the 

 choice of buying local cattle or of ordering from shippers out of Chicago and 



13 



