The price of onions in Abyssinia may not mean a great deal to the Iowa farmer, but the price of lard in Germany does.
This is because about one-third of the American commercial lard produced is exported, and the Iowa farmer depends upon hogs for about two-fifths of his income, and lard represents about one-fifth of the value of the live hog. Naturally, he should be interested in every possible means to profitably dispose of lard. (See fig. 1.)
The two basic factors which influence the price, of lard— indirectly influence the prices paid to the farmer for his hogs— are the domestic market and the foreign market for lard.
Schickele, Rainer and Schultz, Theodore W.
"The lard market at home and abroad,"
Bulletin: Vol. 28
, Article 1.
Available at: https://lib.dr.iastate.edu/bulletin/vol28/iss320/1