2 BULLETTlSr 1124, U. S. DEPAKTMEJSTT OF AGRICULTURE. 



discussion. These feeds are commonly known as " offal," and ap- 

 proximately 9,000 tons are produced from every 1,000,000 bushels of 

 wheat milled. 



The feed value of these by-products was not realized in this coun- 

 try to any extent 40 years ago. Their popularity has steadily in- 

 creased, and while formerly they were principally used by farmers 

 in the vicinity of the source of supply as a supplement to the home- 

 grown ration, they are now shipped from important milling centers 

 to practically every section of the country. 



The requirements of feeders in Pacific coast States are largely 

 supplied by local mills and are supplemented by the surplus of mills 

 located in neighboring States. The production of local mills in the 

 Central West and the Northeastern and Southeastern States of the 

 country is insufficient to supply the enormous demand from the 

 dairy interests in those sections. To bridge the gap large quantities 

 are obtained from western mills, principally from those located in 

 Minnesota, Kansas, Missouri, Nebraska, and the Dakotas. The 

 movement to the Gulf States is usually not very heavy. At times, 

 however, there is a very active demand from Texas, which is mainly 

 supplied by Kansas and Oldahoma mills. 



While the handling of wheat feeds differs in some respects from 

 that of other commodities, they reach the ultimate consumer through 

 a system of distribution similar to that used for other food and feed- 

 stuffs, in which various middlemen, such as brokers, jobbers, com- 

 mission men, and wholesale and retail dealers, play a very important 



part. 



HOW FEEDS ARE SOLD BY MILLS. 



The distribution of mill feeds from the larger mills to consumers 

 is generally performed by the jobber, broker, commission merchant, 

 wholesale dealer, and retail dealer. Of course, the route from pro- 

 ducer to consumer varies. For example, brokers in distributing 

 markets sell at times direct to dairy farmers, and jobbers in milling 

 sections may sell occasionally to cooperative associations direct. 

 Such instances are rare, however. 



The production of country mills when not of great volume is often 

 sold entirely to local feeders or in neighboring territory in ton lots 

 or less. If there is any surplus the intennediary services of middle- 

 men are used. (Fig._ 1.) 



Direct gales hy miUs. — While the bulk of wheat-feed production 

 by flour mills is handled through middlemen, fair quantities are sold 

 to mixed-feed plants, farmers' cooperative purchasing organizations, 

 and neighboring dairy farmers direct. The volume of sales to dis- 

 tant dairy farmers is negligible, for farmers do not like to pay for 

 shipments on " sight-draft " basis. On the other hand, mills do not 

 seem to be anxious to increase their direct sales to distant dairy 

 farmers, because jobbers and other intermediaries offer a ready and 

 never- failing outlet for their by-products, and because the present 

 sj^stem of distribution appears to them the most economical in the 

 long run. 



Sales to local johhers and hrokers. — Contrary to the general belief, 

 the principal mills do not sell extensively to country dealers direct. 

 Flour mills in Minneapolis, Kansas City, St. Louis, and other im- 

 portant markets dispose of enormous quantities of their wheat by- 



