Distributing and Handling 

 Grain-Feeds in New Hampshire 



II. Problems in Retail Distribution * 



by 



George B. Rogers, Research Economist 



and 



Harry C. Woodworth, Agricultural Economist* 



1 . Introduction 



TH I S is the second in a series of bulletins dealing with the area of 

 marketing and handling grain-feeds in New Hampshire. The first 

 bulletin dealt with the characteristics of firms engaged in milling and/or 

 distributing grain-feeds in the State. Field work on the project was com- 

 pleted in early 1954. Hence, the data obtained on the bulk delivery method 

 were largely confined to conventional auger-type bulk delivery equipment. 

 Since that time, bulk trucks using pneumatic equipment have come into 

 common usage in New Hampshire. In addition, some companies are now 

 using an alternative method consisting of a hopper and elevating mechan- 

 ism attached to a regular bagged delivery truck. H the study of bulk 

 handling could be extended, it would now be possible to make more precise 

 comparisons between regular bulk delivery equipment using either the auger 

 or pneumatic mechanisms and the alternative method. 



Some of the principal problem areas confronting retail grain-feed 

 units directly and/or their parent companies or supplying mills are the 

 following: volume, fair pricing practices, retail unit and delivery route 

 efficiency, and the choice between bulk and bagged feed. This bulletin dis- 

 cusses such problems as the preceding and presents data, analysis, and 

 methodology which can be used to arrive at solutions for them. Discussion 

 will be phrased largely in terms of retail units, but the joint nature of most 

 of these problems is recognized and specifically inferred. 



2. Obtaining Volume 



T^ H E key to obtaining operating efficiencies and to lowering distribution 

 -* costs (and, by inference, feed costs to producers) lies initially in 

 choosing locations and practices which will promote volume operations. 

 The trend in the retail grain feed business away from the country store, 

 hardware store, or retail unit specializing in lines other than grain 

 feeds has made possible certain operating economies. With the ex- 

 pansion of the New Hampshire poultry i ndustry, many retail units 

 have been able to thrive in their old locations even though at present such 

 locations may be somewhat less than ideal (or central) in relation to the 



* Professor Woodworth initiated this study and started much of the field work 

 prior to his death on September 18, 1953. 



