possibilities of cooperatives among the farmers of aiken county … · 2016-03-04 · atlanta...
TRANSCRIPT
Atlanta University CenterDigitalCommons@Robert W. Woodruff Library, AtlantaUniversity Center
ETD Collection for AUC Robert W. Woodruff Library
6-1-1937
Possibilities of cooperatives among the farmers ofAiken County South CarolinaEdward Buchanan WilliamsAtlanta University
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Part of the Economics Commons
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Recommended CitationWilliams, Edward Buchanan, "Possibilities of cooperatives among the farmers of Aiken County South Carolina" (1937). ETDCollection for AUC Robert W. Woodruff Library. Paper 920.
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IflODUCflON
of this study is to present the itost Sxcçortatrt prob
Ia of production ant aesteting that coxaf$Pt the tatters of Liken Connty,
south Caro&ir~0 together with nggestiozis that offer possibilitIes in the
solution of those probla~
The i~rt~ of this ctta8y is revealed by the fact that organ
ised efforts sang th. fatten in Liken Countj have not kept pace with the
tat techniques- of production and marketing which have developed along with
changes that have tAken place in our present economic pattern. Although
the scope of this stody is limited to Aflcen Ceznty1 the tact of its limi
tation, to this particular area is not intended to convey the ~sapreesion
that the próblen of fetters presented are peculiar t- Liken touzity alone,
Problems- similar to these of the tenor in Liken Cc~rnty ay be found to
ni-st en many terms in. the !kiited StAte-s end especially the Southern por*
tia.
the very zta.tw- of the study admits of certain limitations which
are listed as fbllefl:
1. Racial factors
2. Diverse t~ss of farm tsznwe
Farmers Cooperatives are suggested as meetis of helping the far
men of Liken County to inprove their economic status, Successful exper
iments in oooperattre methods -macmg farmers in various sections of the
• United States have already been made to meet their needs-. Also -a great
degree of success in fatten cooperation has been realized among Important
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2. Golan4 inolt~ing (Chinese• (Japanese
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general classes:
1. __________ Pan qpsrattre to on part of the land which
tisy operate~ and rat and operate aêfltioual lsnd~. They banro sane of the
cbaracteristioa of full tmna’a and cmxze of the characteristics of tawzts4.
2. These persons she operate tarn or ra~nbes for
caere1 neekVing ages or alertes for their services,
2. ~anant*e Pan operators to operate hired land only. they
t*y be classified as:
(1) cash teats to pay a ce1sb rental
(a) share teats, to whoa landlords furnish all the
art adaia~s
(~) All other tens ts.~• including those giving a share
of the pro4ueta for the use of the land or a share
for part and east for part.
4. ?t4iOa. Pan opsi~ tars who esi all the land stitch they
Opefltet
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t~Btfl~m OF ?WWtVflON t~ ~nim vozmn-- L.r~sii~ t-r---~w-nr*i-~
Wôi the i~*ât pert ~flm4ttwe iii Liken County is a 4~entnl—
bustuesc* Flea i*n Se a ineparabs aperatixs tnit, ifl the rnmter at
opentere e~nespatcUncta the ,szzber at taniw Tli in Yiâdn$ the
at j*%duetioa #zng the tans in ASSa Cataktar, it must be kept
in iniutt that. the tseten at lan~ labor, eapitil, arid atre~nne are all
cteddned on a ginn unit to: produce the finished product.
Lead,- As one at the na3or tact,n Sm the production at fan-a—
.oaeditie~ laud oca’apies ¶au Ss~artaut place. The tollowin~j table shows
the tan land encoding to use. in Alice County in 1934
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12
An analysis of Table II inñicates some important, facts in re
lation to farm tenure, as it prowides the labor force t~ operate the
fans in Aiken County, The full owners constitute 30.1 per cent of the
operaton, with 44.1 per cent of the total value of land operated. The
value of lanti per acre for a full owner is $22.12. Thus, the full awn—
era in respect to the value of land per acre as well as the total value
of all lands operated have the highest value. These facts indicate the
importance of the full owners in embracing the possibilities of cooper
ation, Having full own,erehi~ with all rights accruing therefrom, this
class can completely control the long range ~anagenent policies, of
their farms as ‘sell as the day to day methods of operation to be used,
lIds gives them the opportunity of accepting any innovations and race
tices that may help to improve the efficiency ci’ production. As to the
size of a full owners farm, the average nunber of acres per operator is
152.8. As contrasted with a farm operated by a manager, the farm oper
ated by a full owner is small4 The average size of a farm operated by
• a manager is 659.8 acres, ticb is over four times the size of that of
a full owner. The value p~r acre of a farm operated by a manager is
t8$4. Thus, despite the tact that he operates a farm over tOur times
the size of the typical full otter fans.1 the value of his land j~ low’.
or than that of the full owner by $4.38 per acres A further fact is re
~vsaled that the managars who constitute only iS per cent of the’ operators.,
account for only 3.8 per cçñt of the total value of lan’di’ Thus1 the manaak
getS ‘who receive wages or salaries for their services operate the largest
the unit of any operatorsk Despite the advattages that may be gained
• throi4h a larger scale’ o’f’ operation under well directed management, the
mu, h,,Lwuu~uhIu
13
ultimate power of control and determination of polIcy will come from the
full owner class.
The table further shows that the tet*ent c3Ass, though conati—
ttrting 62.3 per cent of the operators~ has the smallest unitt operated of
any type. The avenge size of a tenant fart is 78.5 acres. The average
value per acre is $15J4, which is next to the lowest value of that :Qf
the part owners. The tenant class represents 42,5 per cent of the total
value of farms in the county, This class of operator represents a group
with the least control ad var-ging degrees of supervision ranging. from
little stwervision to ~t*y close supervidiot. by the landlord. Tenants.
usually have little or no authority in determining the policies under
which their farm shall be operated.
The part owner representing 7.0 per cent of the operators has
en average site of farm amounting to 160,9 acres~ The aterage value per
acre is ~4.95 which is the lowest for any of the operators. He further
accounts for 9.6 per cent of the total value of farm land. In view of
the above faets~ it seems logical to indicate that the realization of
economies of largeaseale operation of the individual farm units must come
through cooperation of the full owner class. Per it 5* this class that,
(1). qan .~entrol and, dictate Ito. own policies of operation end,~ thts~ can
embrace ooperation if it is~ convinced that it is a desirable type of
organization for production; (2) the advantage possessed by this elan
in having the highest laud value per acre, largest per cent of tc€&l land
value seems to indicate superior resources which would be an advantage
in considering efficiency and eoonozçr in large scale production,
In the further analysis of farm tenure for flken County, the
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Di~tribuI~ioii of ~ ~A44~.n4.S of Farms ~~ ti~ .a~iI~n ~oun~v in
113
-~~--~-r ji~ ~~~:~r! ~
capital axpeu4&ture Farms !*aporting Distribution of tn~estments!tems
~ ~maun~ in- Par Gent ot Total~ i ~ e.~ ~ irn.* ~ r i~
Total 3a771 1,OSL+,732 100,00- ~. ~_~f *~. r. ~ 0 ~ ii t ~ — I.... tt ~ .~.. r ~ ir~ • .
Average Amqunt ~nv~wte4per t~rm, (dollar8)
Farm iapIamer~ts aridmaohin.ry 7513 20.1 92,583 1 %13 lZ?.lk~
Farm la’or (cash) 3.,091~ 29.0 272,118 25.8 21j9,00
Feed 7~l 20.7 113,5114 10.8 l13~,O0
Fertilizer 3,161 B3.5 5~3 I
Electric light an~ower 93 2.14. 3,199 .3 37.60
1.. ~. ~ .-.~--— -—~— ---- ~. .~ J- —.~, -t .--
6Department of Commerce, Bureau of C~isus, op. cit~ 1935
J~il ft[[ ~iAi~~ik- t
19
According to the Bureau of Census of 1955, the value of all
farms in Aiket County, including land and buildings, anoints to $6,688,666.
Table II shows that the average value per acre is $17.84. Lu Table III
it may be seen that the average value per fern is $I~745. When the land
value in Aiken County is compared with the land value of the state: as a
whole, the following -contrast is presented:
Value of Av. value Av. valueall tans per tan per acrer
State $285,516,575 $1,125 *23*16
Aiken County ~jj~ 6,888,666 *1,746 *17.84
It is significant to note that the average value per farm in Aiken County
is more than the average value per farm for- the state as a whole. Ho~m
ever, the -average value per acre in Aiken County is less than the average
value per acre for the state as a whole,
In the use at capital tools with which to produce his crops0 the
farmer of Aiken County has not made ertensive use of farm implements and
machinery* Table IV shows that only 20.1 per cent of the total number of
farms reported the use of fan implements and machinery. The amount per
farm reporting was $122.14. It is further wofly of note that the per—
•centage for iip~menis and, machinery is 8.7 per cent,
• Among the farmers ót Aiken Coimt~. fertilizer is an inportant
capital item in the process -of production, As may be seen in Table IV,
6b3 per cent of the total. farms reported fertilizer purchased to the
anoint of $57S~O38..- This iount represents 54,3 per cent of the total
capital expenditures., excluding land and buildings. The amount spent for
fertilizer per farm was $181.28. The tact that 83.3 per cent of the total
fans reported fertilizer p~wvhased, constituting 54.3 per cent of -the
-áapitai expenditure seemS to indicate that the quality of the soil demands
- ILLUL ‘U LU Ut) •jILLILULis~L]ULj’.- tUtU!
20
abenabe iso of fm’tLflaair’ in eoekinatimt with ethor factors in order
tó-prodn* fla. Zn the ane1~rsis of the <~oet C pntuntia, the i~en~”
tact ‘of teUl&ssr sea not be tm--. thaate4~Moordi-ng. to Mr4 O&su
“the place C -sae &aZ fertilizer as a tenant factor in .hiaa’mil%we also deserves a spatial bntold appnisa~ One is the q~uantita—ti~~and the ethet ‘is th~ rsløLt*t to the tale tan economy otthe region. I3oth are tantheamtelw flat5 as to the site of the feartiliset biU~ the- So’s*tes% etilttnti*g hardy a elm eta! crop lads hasinsbed in- the Uattsd S%tea* ~asn too—thirds- of the total notional tax~ageof connortial fertilizer. the $euthea% aoeointing for a fifth *t theagrioultoral men1 eqada three-fifths of th. fertilizer bill, Further
- ww~arison with ether regi~’ shewa- thot . ‘al*.’’ t)~ ~ Wewt~~, the 1*-.i**% sad the Scuitwot acoon~t for nearly i0 pet seat of all crop landsend nearly 40 per seat of all agflotttural income5 they acocait tar onI~5 per nub of the total fertilizer tmrnap~ ?urthanore~. its- So-uthewt
- spse$s mere then.? per cent of i-to gross. inocz. ~ f~flj3j~ ~$wit Ins than I. per’ sent for the Horthwewt sal Seut*st- and - only 1. persent for the laddIe States. Zn costs for tarn operation1 the Soubteast
- shS* -a stil- ~estn preponderance with 41 per oat for fertilizer5. 27pet ~sei. for ‘teed, -and U par’ sent for labor as m,nbasted ‘~4th thi great)Jaa-e States fanifl areas -at 4 per -sent for fertiliaerk itt per cent -for
- feed, a- 4R par cent for 3abot~ or contrasted wit)- the So~-he at- with’Zesethan 4 per seet tar terti1iser~ $1 per sent tot toed5 and SO- per -cent forlehar, ‘Thus1 exotneivo of debt service- - and tezea-, the fertilizer billanotto to noel; a- half at the bass cost of operation for Southeastern -
Acultwe4 and has arty foor tines the *spoflance -as for the WrtSeastern,- - - - - -ee4tn ~ as for the laddie States5 and bout 160’ tins that ofthe !forbhweat.fl
The significance of’ tea-User ‘-as en itai in %e cost -of production can he
very *1 arty ceon from the pietation cited- atv~
-‘ ha-to ttwt ‘ r capital ineste’-1 t insip~--ficenoe at the ew
tent to which the Liken 0o’rit~ farnrs ban Availed thomselysa C power and
light Se revealed by th. fact that 24 ps* cent of the total tans reported
tJ~ -~ at light and -.. This rep seated a percentage of the total
capital eq-endSturn, ewelusiW- of lend and buU4inga, at .5 percent. the
ezasit -of power and lIght per farm is $7,604
With - reference to -capital as a factor in production nong the
fwxwen of Liken - Coue% the fects presented. seen to indicate that
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51
Frsz table VflZ. tbt can 6 seen that boB put cent of the faMes
of the seneral to repctted produce a output Zen than $1000 in alue,
71*. tsble further oh that 26,5 per cent of the Linus diieh represents
the greatest concei*flio of tarts induces an output ranging flat $600
to $999. Further5 %dT per eat of the farms pzcdzn an output lees then
$2500 per farm. ha the facts presented in tables VU aM V1ZZ~ it is
eta that a a4sritr ci tazmsn ~fl4ueisg eott*a at those of the gereal
type Ma a alue it output less than -$1000, this is esidc~ from the -~
fast that TO.? par sent of the cotton farms repéfling shed a value of
output of lass than $10OO~ while 6045 par oat of the seusral farms re
poetig *end an output at Zen than $1000 is value. Since the value
of the~output. is ore reaeun of. the seat. • of production these facts an
ecav1ne3~ng that the seals at production is essentially nfl.
tie abe ftguns are also indicative at an unusuafly 1w ins
—e received by farmers of Li~. County, tie avenge income per family
for the nation in 192$ ‘was $E6O0~ but the groat majority received less
than $l~$OO per family, while 20% of the families received less than
,~00O per year. 1 Liken County, bob 60,5 and 10.? per cent of the
fares received under 415000 stile 19 per eat obtained less than $600,
and the typical farm had a yield of between $00 and 4999 dun the
fl year.
sis~. t$~~n~ng 1fl,w~ Zn relation to the seals of pro
duction the ate. of th. openting unit pita iretazotta, According
to the Bureau of canue flejartnes* of Cannes5 for 193$, the avezage
sin farm unit for AJ County was 110 a.ne,~ According to 1~. Benry
C. taylar,
~, and IT of this stu4
~ii - -. j ia
a“The pre~jer size of a fare in nlati-cmsbip to the scale of
prctzetion must bi- considered. for a gtnn man5 at a given stage of hisown deve-lo~n% or a given type of sot--, in a given ltn~ of peoductica,with given Labot end arkeê eoMttione,”~’
Gcmtinuea h~ taylor turther,• . ~ ares of Sm frond land Sn fans in Bell County,
Thns, vthen non ths~ bolt ‘of the i*p*tved land. is in cotton vac about10 soreS in l9Z~ whá’éea, the avenge as about 270 sores in -Nrtcn Comz—ty, ~naaa4 where arc tin ~aU the. irqrnd land as in wbsat~ itaahington Couiz% flsstssipp~ is compered with Case County~ Jorth Dakota,the- contrast is e- man Stflking, Zn the format county5. the avenge-area of improved land in -Earns is -23 aoresj in tlfltter it is about 470acres, in the Mississippi 0~My~ over 47 per cart-of the improved landwe in cotton., while in the Dakota Count* 44 per cant as in wheat.’~5 -
The above stated facts indicate that the crop gra is a tee
ter in detenining the molt ofti.iát size of a (arm. it may be logical
ly itated. thet the capacity of the ixadivUua~ tenet end the size at his
family are potent factors in detenining the size cat a part-Smiler epeflt
~ng unit. On this small Size operating unit, the average inreebart in
capital teds is $1t2.-.14 - for the (antis reporting, The -average labor cast
per farm reporting is $24s, While the a~enge fertilizer blU per fan
iz$18t,28,, Wtth5OOhir*t1daotthose%r~ejnprtnti4eor*a~1
operating unit, 60.6 pIt cent of the general terms reporting at 70.7 per
east of the cotto,~ t~s-~ an output alued at less than.
$1000 per Lana.
______________ A-- study shai in The ?sarboi~Ør of Agrioul.~
tars- for 193# reveals the cost of peothaing cotton on farms in South
Carolina, the fact. presented in th.~ following table are g~vtn in order
to indicate an estimated cost of production of Aiken Count~-ti principal
crept
~Bearz C. taylor, c~itiines of Apicultunl 2ec~ics, the ktoMiflan~ pp. i~n4~t~ ~h~w r.~*, ~.*e. - ~ r
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35
effectively use.~
~tboda of )krketiz~~jn flkn Cowt;r Site aetten eonstitutes__**fl~H~.. tM—.rr- ir.fl~ MLKr~ T.
the wa3or cflp nong the. tanefl ci Liken Crnmty~ it is important to Gee
hc*r thay rn*et St at the ptoaent tia, The toflawing analysis of the
eheaele of distribution far cotton is taken frcmz I!. L. Rhoadee~ Intro—
.flad$ngS ~Saflet~4 aM is typical of methods of marketing cot
ton ba Saen Csun%~:
~Ita fatten s—zr dispose of their cot~ lacally OZs ship toore of the larger ‘pot marheta. If sold laI3~’, it ay follow the fellow.bag channels:
I. ZscaZ stereWe~r.2, Local interior buyer~ Nact buyer from one of the large shippen
It the cotton is Shipiad to the spot ntaflst before nb by lkhe prodncer~it is usually handled on a .ocsnission basis by a (ketor or coam4csionhawe and sold either an a toserriw or spat basis.
“Loc4 Stenhospors,m 4 considerable portico of the cottoncrop is bou~h4 ~ U4tI%~kespera, This ffl~untly reMan the nflplater sat tenUüt fear: dcpender* upon isoal gene.. . merchants for financial nsistanoe~ A large portion of the mall planters arid texan atthe South are ntis 6 fiance thanslwa throu* *e arcatig maSon.;They are cénpefled to itrrow~ — frequently this borrowing tan tt. tonOf Sri Oj3*it . Ot clargo ascourit with the local storekeeper, ~wnby the .la%tar supplies the plantets masts dufls~ the growing seass, t)ws, thestorekeeper )seain % first niddiaea for a considerable ≠cprntion ofth. cotton. crop,
‘letter~ These en lmai people to engage in pure.chasing cotG~E ~%eW~t accoat or for others, in competition withother buyerss the~r usally operate on a all caØ%l heats and undertake tø meW a profit ~ buying the farerta erop in osapetitia withalter buyers azt selling to larpr dealers or thnng* footora: These 1ny~en keep close atob of the 4b~ situation and the oharacterat toadStiom of the ccttc*~ 55 it in being picked, With this intonation as a heate they make their offering rices fbr the cotta as it nsa. Often theybuy difletly (ran the gia aM in see instances, the greets thmasel’vesate. cotton buyers.
“~ aer. the mill is located in. the vicinity of the gnm~mrs it is sez~thes sold directly to the mill,
‘i4roct or Road Duyers.e those are buying agonte or road buyerswho are so ~Hflr~ ~‘öton merchants in Inyirig cotton directlyin. the truduc irig territory.. Those buyon rtrk either on salary or
I!]_JL L U iii th! I. I
56ocaaission basis and as’s interested in trading to the beet adantaga tottheir prineij~als. They ~txrc haze 1srgely~ ho~a.*r, tram sellers ,to a athate purcirased a eonsi4enble quantity of cotton, so that the road buyercan take it up 6 lots of 100 to 1000 bales~ their p*chases, thereforE,are ohiet3v from the larga p1ters~ cc else from lace: $tfl$ or $tflw~tar ben, vihö ~y hen: aeon lated ~00 or S® be).. or more 5* local flflehnes. these buyers after shat is cal3aê a bog rmt price, that is,a flat prLoe for th6 attire lot at ootton even though *4 say he of themost wide3~r aryiag grades and staples.
• ~The read b~r goes thraigh each lot of sotton ant samples it.lie may sample nay hale of it ant still not buy it, since he nay offer aprise which the mercflai* refuses. Re also reports to Ida conon thequantity at cotton ~nu’ohaaed with the clae.tfloat~on of Ste
“Tie hayeS (vs the Zérge spot zanieta are tuA~ui*hed by thehead officewith Units. or a lasts, that is~ the number of y~izits on oroff ‘tich is to be applied to tie future. p’Lce of the hedge month prailiatag at the tine the o~btoe is purchased~ The limits are gnnlly serb
4 once a. days bat ate geneal)y áhangsd shmwver conditions wan*z%which nay be ~ times a âay. flqers are also furnished with a flatof differenca en ant oft middling to be added to or subtracted from thebasis in buiftug oottcn grades abhor than middling, these differences, inocatrast to the Units or bas*s, do not abanga V5Z7 oftOn.
“coucatnt:ia of ~Catta,— 4~ottot ace*zmzlsted locally by interaisv b~yera, 1oiihfltà~es1tØQ~ ii~t nu wyara,. — b: Of cons$dsnblsnriety, either in grade or staple, ë both.. In oon2squexme5 nab of thiscotton is eoneattratcd at what an known as Ooien%%tioa pouts, The Cameeeitntiai of cottSn ±~tan s%i azornaic etsalpoint is principally in orderto bring topther lets of cotton of diftenEt grades end sba$Ea so thatthey can be. classed out ant diiridsd into lots of stem ra Sag quality.Extra expense is entailed 17 warehouse aid handling ehargas,
‘Methods of *Uiaj Spot . cto 1. On apis. An originalsap).1 ~ ~ j:~~ eè4ii~ ‘Ei~t. 1~ sale is on the basis of ~ sameplc from each bale, end that each bale mist cone up to or equsi the amplefor that ~afl4oular lale *. On typel. Zn as1l*~g 17 type. the ds&iet mayoffer his prcszectiw e*tan~, or the ptespect. purchaser ray attn tbuy from the dealer0 cottog e $alont té a spootItod type, The type i%self mcy be na4e ~ap by the dealer oF 17 the spirar arid may be ora sample,or it nay be ~y; that ic~ a selection of samples nade up as a type towhich the sbipaeEt seat oonfèa. 5, On description. The cotton is se$4to equal a certain psde5 staple, or both, withot* the buyer seeing anysample,. the deseøptie apeei4tngi the ~ cat staples the ‘.~ &5 toreceive. This method ‘of trédirag is 01’ whEn actual eamples are nOtawailable at the nir,nent of trading, but when the buyet is tWailiar withthe character of the cotton caning from the section in which he is makinghis piaro•.~
itus, the siaflsecals scattered produces meet a largeasoale.
caitralised deand, Due to the buZ~3 nOneperishable character, andF. F •..~ ~ . ~ .. . ~
a13, ~, l3tboadee, Ztroductor7 ileádisp in Uarket~ Zboaw’41i11 Book 0g.,
Ixn,.~ New Yorkfl~t0 pp~ zo~i~ig W.zTh.
~flEL~IdjH~IL [LH~ .~jj ijnijkjhJith~ft:
37
uzrdtae4 character of the product, tb perto~ace of a water at
.epeoialiarn& sentees bec<mea necessary, The cotton must be colZeoted
tat the produsen~ ~need, baied,~ tnpoite~ traded, etorede Uenoe~
a groq of spc$aUacd a~rohtts baa developed in order to mar2*t the
ta~fl cotton, The faner finds M~self faced *ith certain definite
dited’~rnztagea ircideut to marketing his cotton as folloWa~ 1. side fluc
tuations in prices 1i4 toe aiddling cotton in the sate market cc the
SUaS 4a~ a, undue petalising at the leer gados; 5, insutfio3sit
pae~aiuas for bettor padea, staples, and ~elitiesg 4, ad’oantage taken
due to the Laneb iwzorazne of the exact pads, Staple, and quality of
hit cotton, Thus, lê’* Rhoádes makes a Statement which been mush signi
ficamue as foU~ss
“The sinutaeturer1 and ne*-speoulattn m$Zdlwn are tindingcooperation a good thing. A stable ma$cet, *ithmxt the dangers at tmpj~ing~ is.. as ~aluabie tat thá as for the pee*. t~ cotton Laner Isgoing tight ahead v4tb his oooperati’vo neeting,~tW
.,~ typical of the method at marketing livestock is
that of the method of marketing hogs in Aiken Con~r, The more $mpoflaflt
rtncn44~ nethodG of marketing twaj be listed as faUcet
I. froducer .shtpeaita,
a, To~markets
1*, S3saghter sad sale of products W tw.aen
2. Local sa]~~
a. To the county .drnsr
Ii. to the iaoker er
a. to local butcher
The hogs are sold for the moat pert on. the hoot, the produ% in this forts
is to a peat extent bulky, In maqr respects it is highly perishable,
t. ~fl*Im—~-~ lw) CL
-r ~
•~ A~LM1i i L[th~
313
AS the horn Ion the tSr)) they represent a widc range of ohareotertetios.
Some cc!zforrn to ~woU established gn&s, whereas othen an lu shaped and
raI~t &tUO are fat and others are a.eiatedg eons are wr~ twig end
others are oldj some 1a~ end others lights, and, finally~ some npna~*
the highest degree of ~a1itj: whereas others are tneely 4efioiezrt in
quality. In the light of these conditions it is the function of the as.
keting jw0005s to bring this great variety of aniala into such a condia
tion that the peopie who can utilise then to the best adiantage i~ay have
an oppoflunity to buy then. To ecóo~liah *~his end stoat eooctaically, the
livestock should ‘be esasubled into groups on the basis of certain si~iifie
cant eharaeteristtoa4 Thus, the process .f classification acceN$g 4Ø~ha
becs neoesaar~r, This menu is calisd padizigc. Grading has the tel—
loving definite econaic nluen
I. It ambles the buyer to get the ai*zaIs he needs without
buying some for which be has to use,
2. it settee possible an accunte detewdnatien of values.
3.. It enables the produce to aeli his livestock striotl7 on
its merits,
4. It tee possibl, accurate and intelligible aricet report..
ing Ir pruvUing a tame or label for each .group and having the meaning of
such gro4a~ zames cl~afl4r uedentond i~t all prospective buyers.
The livestek in Aikea are produced on a aall~scaie by nsxq
scattered ‘afte. The choice of the methods of arhoting livestock as
indicated above depends upon anal Keaton, aush as the ‘rol~sse of pro
duction distatos trots arkeb, relation of prices in the various merkets,
freightierate structure, and the alartmess of the famuer. The individual
Kenier producing livestock in Aitasa County is not likely to be familiar
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47
1. Stsu$srdtatian of ~rMss -~d L,~~ne4 he~im-~ atho-ds~.
2, 8invZop~iat of a eff~tiis menheMisiug ~rognan Si~ive the- -tfler
infntica whith isfll sz~hi-e bin to nsualise tket conditions -six months
or e year In advwzeo, thus, - w~isist in making MJuw%aexb in j~roduetion
It po*fln~ the ~nciuüb of their nben~ the
•eooperatttes nest dh*de -tin Sstt. pades so that they oat make rettwn*to
the gnwen in ae-~mdanoe tth the- market vaiue of the product each s~e
produa. the stande~d sr:s ~ake tra4ing easier, roduce- ‘wastes, and pro—
mote wider -d~stribrgtion and inarease& eona~nçtLou.
___________ the- .eot~>entiLn: ma$atiu~ crgsn-Ltation can do- non
sitoetive msrdwndi-sirag of famn praducte then the indi’#iduai prod~noer,
The situ of the selling progrim e-t the cesporabtie- i-a to senice its aa’ten
and. its cuatomses. A thoro’ugh study at the price and dnni history -of a
connodity ad a- iutrntledge of the present and potential aiz~iy are esten~
tiel in order that the eörrs- oiling prccjrem erni be deturolt- for the -
co~uo4i%r4 It is very likely that-- to eooperattve nariwttng erganisatien
aim portent thIs service mere efloetivt4y than the i~pandent- producer,
-~The cocpaatite -nscx4atton is hi
a better position ti knav the zterketa and the -faators that -eflect prices
than the independent producer, It cit use thS.s iuftr’ta-tSnn to guide its
price poli-ciesi determine the markets in chieb- it viii attsipbto sell; the
~ut7 it win ottn each day -or veelq and the trade channels Lt will
t~se These services onnw~t be -effecti’ve’ly performed by individual producers
w1~o must rely to -a large extent on the independent chanmzls of distri~-a*~
tian, the fI~liowing observation hi a. - 13, Per-a been much -sigzziftoauto
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52
in owtsr U the Pflb~M that confront th. fanor in
marketing his cotta in Uk~ Coimty were pointed out. Coopentin marke4’~
tug of cotton otters him the fofl---n peasibilittas as a solution to these
protAa*-:
1, the eooperatifl markets in a business iLk. maimer ~ prevents
dumping of cotton in the ThUs through a rather’ etp*i distribution of sales
over :j~Ø ontin ye. Through its -organization it -can better obtain full
talus for grade and staple of cotton produosê. Further, because -of its
large-scale -operations5 it ts in a position to effect savings by making
sales direct to the ~irnaen and manufactunfl*
h Cotton can be sold only whet there La a tanaM tot it. the
cooperative studies the sales and price policies of a given arket and in
terprets its marketing prognm as one in -áich it is uenbandi#iug its pro~
duet-, that is being prepared to sell and deliver, not only the quality,
but also the ~antity of the cotton in amoordauce with demand as expressed
1w the buyers with ‘whom -they are dealing..
the - -pottw~s. enti’vet~ fAke any -ether organization
the cotton cooperative La faced with cerbin problene. (his of the major
probla is -the question at contracts between the indivith*l producers and
the aseociatian. Zn order to co*n to the needs -øf individual growers,
the cotton co-operative cteatei- -short-tins pools5 including its operation
of daily po$s, 3ewday p-oola~ and seasonal paol~- thereby giving the farmn
St the option of -choosing the particular pool to ~ - he wished his cot
ton to go. Zn the daily pool be is- permitted to choose ti day of sale.
Zn the event - a spot sale of that particular quantity can net be made on
the date chosen by the gne, the association cells an equivalent quan
tity o~ the -fetus. msfls% This hedge is -liquidated at aste future date
flrw&t~s•.tq~f~:fl~Z~q$~UfltWoflVa&fl%tedoq~
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56
~uia table ibme that the ?eraaitaae ~~ •~jy~a~ to larp
sesla •ooop.ratii~a aesac4*tton* in Soatli Ccol3x~a betweat i9flrnl9$0 has
aba iv$4e (Luetsiationsi Readdfl 21.7 cent in 18224$, the pfloentage
tell to a low of 5.4 in ~92$w26. ~1text in 192940 ito percentage inonased
to 94. ThiS table is irnllLstiw at tbo sateut to tab the Larsen of
Sn Carolina ban t.keà H .. at the coopetattve ~tho4 d
their cotton1 áiab 4* one of the ~ ~flnei~. con*dities raineb As in—
diSae~: by the fluoteatiens Lw the ~aoimt. of cotton 4elivnI to itt
ei~ti~n it is logical to sane that the tsrmöra bare used the assoeSation
to the extent that they ban foixid it bsáifieislt eli.. the reduced saauat
at sutton hanested in a gina tsar nay accoust for the fluctuation in
nntt delivered to the association.
4wetoc. As as: pointed out Sn Chapte U~ the production of
livestock ng the Larsen of AShen Cousty’ increased wet the Live-year
period fron 1920 to 1935. Fttthar, the method by whith the brrnen mar*e
hated their livestock as indicated.. cooperative narhating of livestock
offers distinct adventeges tlnwjh lerge-aeslo ~*rkottig that the 5z4i
vidual producer sea not *bain. ten types of local obi~iug aaso.datiezt*
has’s developed to serve the needs of linstedc pnducers:
I. the local .esseeSatLcrn thiob operates usi*lly at cue sbip~4ng
peint.~ .2., the county shipping association ttioh 5* usually a federation
of local shipping aseoctations in a given county.
_____________ The local association operates priuatily as
a livestock asse~Ming organisationi La many instancea~ honer~ tbe~e
agencies act as direct selling agents. Sometints they servo their patrons
by purchasing far the coal, fencing, twine. at other general hi sup
plies. This association operates under a manger who requests the amnben
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~ pni~snt~n f~r rnez~t4 of his
3. GoutnlUs the flow, to o%— the ooo~sratin seeks to send—nnig-jw:-t •;i~t. ~ctLLadê~ i—tr i-i
the cozaodities to the best markets at a partioular tina. a is logical
that if ls~e cjtmntitiea. of’ say. cornodities are centrally omftrolled, thoro
is possibility of reaflsatien of this’ aim, thus., a cooperative assniation
as opposed ‘to individual produeere,oan effectively follow the markets of
products as they move toward ari~% cod tbrotgh carload shiprnezrü reach
the best aveilable narket. This advantage an individual producer is not
likely to obtain.
3 tmvroved Ep34ngJ%~er.em The average fiirmer is not likelyt~ nsa- r-w.~*
to study markets end marketing and to know price trends.. Thus, be is in a
week position to bargain for his products. He is one of the many graven
selling ‘to Jooai aWZeaen or’ other independent buyers:. Where the tanners
eonb.Ln% their bargaining powor increases even to the ox-eat in some oases
that the price policy may be dictated, thus1 tea the cooperative controls
a large part of the farmer’s swyply, it becomes a definite fore, in the
market. This is not likely to be the ease with an individual producer.
4. Roduob~ the musher of !.thddlenem,. It is not sli*p the ius.1 rt’-LMY ‘r—tt,’t ~“—~—— .“ -r,”jrtsn’
tention of the ceoperative to eliminate all ‘middlemen between producer
and contact. However, in proportion as. the cooperative efficiently per—
foria the services end. functions of the independent middles, will it
effect savings tar the tanners. It is evident that the cooperative when
efficiently operated i411 give to the tatters, who own and. control 1% the
returns which would othøniee go to the independent middlemen who market his
products,
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