1. A method of analyzing the effectiveness of local livestock cooperatives in selling hogs is described. Through the use of this method a cooperative manager or a research worker may analyze the operations of a local association for any period of time and obtain information regarding the relative profitableness of different market outlets and different marketing dates.
2. The method of analysis has been applied to the hog sales of four associations for 1931. Net returns for hogs of comparable quality are found. The variations appear to be due to varying degrees of success in choosing the time and place of sale and to related factors whose net effect cannot readily be isolated.
3. An important consideration in analyzing the results of sales is the development of normal shipping margins that will reflect equitably the differences to be expected in margins to the respective market outlets of a given association. It is also important to show the proper relationship of the shipping margins of one association to those of other associations. Shipping margins in this study include the cash expense per hundredweight, usually to be expected, to which has been added the cash value of shrinkage in an amount usually to be expected.
4. An illustration of one kind of result obtained is this: On butcher hogs weighing from 160 pounds to 350 pounds, association D got net market returns of $5.60 per hundredweight in 1931; association B, $5.72; association C, $5.76, and association A, $5.68. Thus association C got an average of $0.16 per hundredweight more than association D on butchers. On the volume of butchers handled by association D, this difference would amount to $1,898.06 on the year's business.
5. If one association sells more effectively than another, this effectiveness may be due to (a) better choice of the place to sell, (b) time of sale or (c) to other possible factors .
Thompson, Sam H. and Miller, Paul L.
"A method of analyzing the effectiveness of local livestock marketing cooperatives in selling hogs,"
Research Bulletin (Iowa Agriculture and Home Economics Experiment Station): Vol. 17
, Article 1.
Available at: https://lib.dr.iastate.edu/researchbulletin/vol17/iss193/1