MARKETING 211 



comes more complicated. If the distance is not over two 

 or three hundred miles the sow can be shipped in one 

 crate and the pigs in another. Where the shipment is 

 farther the sow and pigs can be shipped in the same 

 crate if it is of a special design. In the shipping of breed- 

 ing swine there are other considerations not met with in 

 the case of market hogs. The matter of registration 

 papers has to be looked after, the inoculation against 

 cholera and other health precautions are frequently dif- 

 ferent from those for hogs intended for slaughter. 



Profits from pork production. — There are two factors 

 controlling to a large extent the profits to be made from 

 the production of pork. One of these is the cost of pro- 

 duction and the other is the net sales. We are naturally 

 interested in producing at least possible cost to give us 

 a greater selling margin. So far as the selling end is 

 concerned, we are especially interested in the gross sales 

 and the costs incidental to making the sales. The dif- 

 ference between this net sale figure and the cost of pro- 

 duction is the net profit from the operation. As a rule 

 the market value can be approximated more closely than 

 the cost of production, since the market value is in- 

 fluenced by fewer factors. The market value is almost 

 entirely dependent on the supply and demand and upon 

 the costs of marketing. 



Factors influencing cost of production. — The cost of 

 production is dependent on both economic and local con- 

 ditions. Of the economic conditions influencing the cost 

 of production we have the market value of the land 

 and equipment, interest on the investment in other than 

 land and equipment, and the natural adaptability of the 



