CHAPTER XVIII.

MARKETING

162. The Development of Marketing. In pioneer days agriculture was comparatively simple. Each family was selfsufficing, producing its own food and clothing which are the primary needs of human beings. But little thought was given to marketing as known today. Production for home consumption was the impelling force in agriculture. Plans for production reached but little farther. Most of the people lived on the land and but few outside relations were involved as far as marketing was concerned.

Modern agriculture, however, has become exceedingly complicated. Only about one-third of the people are now devoting their energies to farming. These must produce the elementary food and clothing utilities for those who do not live on farms, as well as for themselves. They, in turn, demand from those who do not live on farms various forms of goods and other utilities produced in the towns and cities. The foodstuffs and other utilities must often be assembled, transported long distances, and then distributed among the users. This applies to both the farm products and the products used by the farmers. The exchange in commodities between producers and consumers has resulted in the building up of local and terminal markets for the handling of the products. In many cases long and complicated marketing processes must be gone through with where formerly the exchange was made direct between producer and consumer. The problem of getting the products of the farm into the possession of the consumer is indeed complicated, so complicated in fact that a recent report from a congressional committee states that only about one-third of the amount the city consumer pays for food products from the farmers goes

into the pocket of the one who produces it. The balance is divided between commission men, jobbers, wholesalers, retailers and other middle men, each one of whom gives some additional service or adds scmething to the quality of the goods before it reaches the consumer. While production will always be the chief function of the farmer the marketing of farm products has a large influence on the profits from farming. Farmers will do well to give serious study to their marketing problems. 163. Handicaps in Marketing. Few farmers market their products in the best possible fashion. As a rule sales are made by the individual farmer when he has something to sell and needs money. But little attention is given to the market fluctuations or to finding a market that will pay a special price for products of good quality. Whatever there is to offer is placed at the local market and the seller takes what he can get for it. The individual farmer can do but little to influence the market. He does not have enough of any product to market to affect prices in any way. Seldom is there enough of the product from one farm to ship, in large lots or carloads, to a better market. The seller is at the mercy of the local buyer. And in most cases the local buyer pays all he can afford to for the quality of goods offered. If the seller knows his product and its value and is good at driving a bargain he may get all it is worth. If not he is not likely to. Good products marketed in small lots, with poorer products must be used to bring up the average of the shipment. Where only staple products that are not perishable are to be marketed the problem is not so serious. But if the product is perishable or valuable and must be marketed as a specialty, business ability in selling is one of the most essential qualifications of a farm manager.

164. Time to Sell. When market prices for a product are good at the time of finishing it is usually best to market at once. Storage of grain, corn, or other farm products is attended by risk from fire, weather and vermin. There is shrinkage

in weight and frequently loss in quality of stored products.

FIG. 67.-Eggs gathered every day, carefully sorted, and packed in cartons for a special trade, sell for much better prices than common stock.

The costs of taking to barns and granaries and taking out again add to the costs of marketing the coarser farm products. If these costs can be avoided the profits will be greater. Many farmers in the west bale hay from the windrow and place it immediately on the market. The baling can be done about as rapidly as the hay could be stacked thus saving the expense of that operation. In selling

their hay on the same market those who reduce the cost of preparation for market receive the greatest profit.

There is no time of year that can be fixed as best at which to sell most farm products. The only thing that can be done is to study market conditions and requirements and come as near as possible to supplying what is wanted when it is in demand.

165. How to Market. Whether farm products should be retailed direct to the consumer by the farmer, or sold through a commission house will depend very largely on the product and the amount of time that would be required to market it at retail. Usually the farmer is so fully occupied in growing and preparing the product for market that he is obliged to leave the distribution to some one especially equipped for handling it and who can combine the distribution of the products

from many farmers, thus reducing the cost of distribution as a whole.

Much can be gained financially in selling farm products by the careful preparation of the goods for market. Grain is often offered for sale which contains weed seeds, dirt and other foreign matter. It must be cleaned before it can be used to the best advantage.

If the buyer must do the cleaning he must buy low enough to cover the cost. In many cases the grain buyer can clean the grain more cheaply than the farmer can, if it must be cleaned. The aim should be in growing the grain, to

keep it free from weeds, to keep out the dirt and foreign matter and produce only a product of good quality. A premium can be demanded for the best. And if produced in sufficient quantity, shipment to a terminal market can often be made to advantage when the local market refuses to pay full value.

The special preparation of other articles of produce deserves careful consideration. The better markets pay a good premium on freshly gathered eggs. If the eggs are gathered daily, marked with the date on which gathered and shipped promptly in cartons, a much better price can be obtained than if sold unpacked or traded to the local grocer. By adopting a trademark or trade-name and paying attention to the demands of the purchasers a fancy price can often be secured. By this means a farmer in the northwest secured 40 cents a dozen for eggs throughout the year when the common run of eggs failed to exceed 30 cents a dozen and reached that figure only in the winter when there were few eggs to sell.

Butter, hams, bacon, poultry and other articles of produce can be sold at an advance over the regular market if they are prepared in an attractive way and offered in a reasonably

constant supply. One
must avoid fussing over
them so much as to
raise the labor costs
beyond the possible
extra margin. A point
should be made in
building up a special
market to provide a
regular supply. Nothing
is more fatal to a fancy
trade
among special
customers than a few

disappointments in receiving the expected supply. Attention to regular deliveries and to furnishing produce that is always up to the trade-mark standard is essential to success in catering to a special market.

Study given to the style of package that best pleases customers is well worth while. Study of the size of package in which the special products to be marketed will best stand transportation will also help in putting the article before the customer in good condition and often prevents loss. Plums, grapes, tomatoes and other soft fruits and vegetables carry best in small packages. In such packages they also sell best at retail and give better satisfaction to the customer who buys. Sorting, grading and labeling of all fruits and most vegetables will help greatly in securing good market prices.

In selling live stock it is important to have the animals in good condition. An animal in good flesh and clean always sells better than one that is thin in flesh and poorly cared for. It is estimated that draft horses will sell for 25 cents a pound more when fat than when thin. That is, a horse in thin con