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Although the share of the consumer's dollar going to all marketing agencies has not changed greatly since 1947, several significant changes occurred in the margins of particular groups of agencies. Average margins for manufacturers of 17 major kinds of unfinished cloth declined moderately in the 1956–57 season, and, although still 7 percent above 1954–55, were 49 percent below 1947–48. In contrast, gross margins for wholesale dry goods firms increased in 1956 and were 3 percent above those of 1951 and 7 percent above 1947. Margins of retail dry goods stores in 1956 remained about unchanged and were 3 percent above margins for both 1951 and 1947. Margins for merchandising raw cotton also have risen moderately, reflecting increased charges for warehousing and transportation services and added costs of carrying larger stocks.
TABLE 4.-Cotton products: Average retail cost of a family's purchases of 42 articles
Table 4.-Cotton produces: Average retail cost of a family's purchases of 42 articles
and of 3 individual articles of clothing, farm value of equivalent quantities of cotton,
marketing margin, and farmer's share of retail cosi, 1927–57 1—-Continued
1 Annual estimates are simple averages of data for March, June, September, and December.
Retail costs were originally computed from prices collected by the Bureau of Labor Statistics, weighted
by average number of articles purchased annually by families of wage earners and clerical workers (from
1934-36 survey). Beginning 1943 retail costs are based on indexes of retail prices of cotton clothing and
bousefurnishings prepared by the BLS.
Estimated prices received by farmers for cotton of grade and staple lengths used in the manufacture of
the various articles, weighted by quantities of cotton required.
• Before payment of processing tax which was in effect from August 1933 to January 1936. The tax on the
quantity of cotton required amounted to 37 cents in 1933 and 89 cents in 1934 and 1935.
MARGINS, Costs, AND PRACTICES PUBLICATIONS ISSUED, JANUARY 1957–
Do Trading Stamps Affect Food Costs, AMS, Marketing Research Report No.
147, January 1957.
Losses from Quality Deterioration and Shrinkage for Corn Resealed on Iowa
Farms, AMS-166, March 1957.
Derelopment of the Commercial Poultry Slaughter Report, AMS-174, March
Lamb Marketing Costs and Margins, Marketing Research Report No. 159, April
lamb Prices, AMS, Leaflet No. 413, April 1957.
Losses from Shrinkage and Quality Deterioration of Corn Stored in Country
Elevators and at Bin Sites in Iowa, AMS-173, April 1957.
Special Margins and Costs Studies, Marketing Research Report No. 167, April
1957. (Reprinted from hearings (pt. 2) before the subcommittee of the Com-
mittee on Appropriations, House of Representatives, 85th Cong., 1st sess.)
Marketing Molasses in the Feed-Mixing Industry, AMS, Marketing Research
Report No. 174, May 1957.
Trading Stamps and the Consumer's Food Bill, Marketing Research Report No.
169, May 1957.
Orange Tree to Breakfast Table: Marketing Costs and Margins for Florida
Oranges, Marketing Research Report No. 164, June 1957.
Processing Poultry Byproducts in Poultry Slaughtering Plants, Marketing Re-
search Report No. 181, June 1957.
The C'se of Packing Labor in Florida Citrus Packinghouses, Florida Agricultural
Experiment Station Agricultural Economics Mimeo Report 57-8, June 1957.
A Method of Allocating Citrus Packinghouse Costs, Univ. of Florida Agricultural
Economies Mimeo Report No. 58-1, July 1957. Univ. of Florida in cooperation
Conversion of Small Hydraulic Cottonseed Oil Mills Into Higher Oil-Yieling
Mills, Marketing Research Report No. 187, July 1957.
Costs of Packing Colorado Peaches in 1956, Marketing Research Report No. 179,
How Bulk Assembly Changes Milk Marketing Costs, Marketing Research Report
No. 190, July 1957.
Marketing Margins and Practices for Turkeys Sold in Three Eastern Markets,
Marketing Research Report No. 191, August 1957.
Costs and Efficiency in House Packing Western Head Lettuce, California Agri-
cultural Experiment Station Mimeo Report No. 199, September 1957.
Costs of Butterfat Sampling and Testing Programs, AMS-212, October 1957.
Quality and Cost of Ginning American-Egyptian Cotton, Seasons 1952–53 and
1953-54, Marketing Research Report No. 199, October 1957.
Case Study of Labor Costs and Efficiencies in Warehousing Formula Feeds,
Marketing Research Report No. 205, November 1957.
Cost Standards for a Model Stationary Custom Feed Mill for the Midwest,
Preliminary Report, AMS-215, November 1957.
Farm-Retail Spreads for Food Products, Miscellaneous Publication No. 741,
Marketing Charges for California Long White Potatoes Sold in Los Angeles,
Chicago, and New York City During the 1956 Season, Marketing Research
Report No. 193, November 1957.
Marketing Costs and Margins for Chicken Fryers and Fowl Sold in Chicago and
Minneapolis-St. Paul, Marketing Research Report No. 195, November 1957.
The Wage Factor in Retailing Meat in 4 Cities, Marketing Research Report No.
202, November 1957.
Comparative Costs of Alternative Methods for Performing Specific Operations in
Florida Citrus Packinghouses, cleared for publication by Florida Agricultural
Milk Distributors Sales and Costs, issued quarterly.
Use of Trading Stamps in Marketing Food, Agricultural Marketing, January 1957.
Trends in Marketing Costs, Agricultural Marketing, January 1957.
Marketing Margins for Beef and Pork, The Marketing and Transportation Situa-
tion, January 1957.
Marketing Margins for Poultry and Eggs in the United States and Selected Cities,
The Marketing and Transportation Situation, January 1957.
Marketing Costs and Margins for Fruits and Vegetables, The Marketing and
Transportation Situation, January 1957.
Marketing Costs and Margins for Dairy Products, The Marketing and Transpor-
tation Situation, February 1957.
Trends in Marketing Lamb, Agricultural Marketing, May 1957.
Farm Food Marketing Bill, Agricultural Situation, September 1957.
How Can Dairymen Decide whether to Use Tanks? Agricultural Situation,
Slicing Up the Chicken Costs, Agricultural Marketing, October 1957.
Retail Marketing Costs for Turkeys, Agricultural Marketing, November 1957.
The Wage Factor in Retailing Meat in 4 Cities, Agricultural Marketing, November
Turkey Growers Like Selling on Grade-and-Yield Basis, Agricultural Marketing,
Livestock Markets Are on the Move, Agricultural Marketing, December 1957.
Marketing Costs Keep Going Up, Agricultural Marketing, January 1958.
Changes and Trends in Food Marketing Industries, Agricultural Marketing, Jan-
The Shorter Workweek in Agricultural Marketing Industries, Agricultural Mar-
keting, January 1958.
How Do You Sell Your Turkeys? Agricultural Situation, January 1958.
Marketing Margins for Dairy Products, The Marketing and Transportation Situ-
ation, January 1958.
Farm-Retail Spreads for Poultry and Eggs in the United States and Selected
Cities, The Marketing and Transportation Situation, January 1958.
Price Spreads for Eggs in Washington, D. C., The Marketing and Transportation
Situation, January 1958.
Farm-Retail Price Spreads for Fruits and Vegetables, The Marketing and Trans-
portation Situation, January 1958.
Concentrated Whole Milk is a Qualified Challenge, Agricultural Marketing,
Power and Labor Costs, Agricultural Marketing, February 1958.
The Changing Market for Vegetables, Agricultural Marketing, February 1958.
Use of Soybean and Cottonseed Oil in Margarine and Shortening, Agricultural
Marketing, February 1958.
OTHER DISSEMINATION OF PRICE SPREAD INFORMATION,
JANUARY 1957-FEBRUARY 1958
Marketing Costs, by D. B. DeLoach, statement presented at the Annual Out-
look Conference, November 1957.
Marketing Costs, Farm Prices, and the Farmer's Share, by Kenneth E. Ogren,
statement presented before the Subcommittee on Agricultural Policy, Joint
Economic Committee, December 17, 1957.
Costs of Marketing Major Farm Products, by D. B. DeLoach, statement presented
before the Subcommittee on Agricultural Policy, Joint Economic Committee,
December 17, 1957.
I'SDA Television Service Package Program No. 190, Why Marketing Re-
search? February 14, 1957 (based on general publications, includes informa-
tion on margins and costs).
CSDA Television Service Package Program No. 207, Delivering Your Food,
June 13, 1957 (based on Miscellaneous Publication No. 738).
CSDA Television Service Package Program No. 248, Beef Goes to Market,
November 28, 1957 (based on Miscellaneous Publication No. 710).
USDA Television Consumer Series :
Where Does Your Food Money Go?-
No. 1. The Price of Bread, July 1957 (based on Miscellaneous Publica-
tion No. 712).
No. 2. The Price of a Peach, September 1957 (based on general pub-
No. 3. The Price of Milk, October 1957 (based on Miscellaneous Pub-
lication No. 733).
No. 4. The Price of Pork, November 1957 (based on Miscellaneous Pub-
lication No. 711).
OC 1-13. Flaxseed storage practices related to deterioration, costs, and returns
OC 1-14. Effects of different methods of handling sugar on costs, margins, and
OC 1-20. Costs of grade change and shrinkage of wheat in different types of
OC 1–22. Quarterly measurement and analysis of margins, costs, and efficiency
in distributing fluid milk and cream products for 80 selected plants.
OC 1–24. Marketing costs and efficiency in the mixed feeds industry.
OC 1-26. Efficiency of marketing western grown head lettuce.
0C 1--29. Measurement of components of farm-to-retail price spreads for selected
food commodities on a continuing basis.
0C 1-32. Cost and efficiency of distributing milk through vending machines.
OC 1-34. Marketing margins and costs for eggs cartoned in the Midwest and sold
in distant cities.
OC 1-36. An economic analysis of costs and practices in handling and packing
0C 1-37. Economic analysis of poultry-dressing plants in New England.
OC 1-41. Economies in converting small cottonseed oil mills into higher oil-
yielding type mills.
OC 1-43. Cost and efficiency in wholesaling frozen foods.
0C 1-44 Costs and margins of marketing livestock, meats, and meat products.
OC 1-46. Analysis of farmer-to-consumer price spread in relation to marketing
agencies involved and services performed in the marketing of dairy products
in selected cases.
XC 1–49. Economic and engineering studies of fruit and vegetable handling,
packing, and packaging.
OC 1-53. Effects of mandatory inspection on costs and efficiencies of poultry-
OC 1-55. Economic effects of electronic and mechanical egg-grading devices on
the marketing of eggs.
OC 1-57. Costs and benefits of treatment and disposition of sewage from poultry-
slaughtering plants through irrigation systems.
OC 1-59. Evaluation of economic effects of trading stamps and other promotional
devices. OC 1-61. Development of improved costing procedures for poultry-slaughtering
plants. OC 2-53. Extent and effects of major labor-employment practices on the costs,
adequacy, and structure of agricultural marketing. OC 3-1. Marketing situation and outlook reports. OC 3–2. Development, maintenance, and analysis of farm-to-retail price spreads
and other marketing statistics on entire marketing process. OC 3–14. Providing statistical and economic information relating to the market
ing of agricultural products.
OC 1-38. Marketing costs and practices for peaches.
OC 1-45. Marketing margins for oilseeds and animal fats used in the manufacture
of food products. OC 1-62. Costs of marketing fresh citrus fruits grown in Florida and Texas. OC 1-63. Margins, costs, and trade practices in marketing chicken fryers, eggs,
and turkeys in the San Francisco area. OC 1-64. Buying turkeys from producers on the basis of ready-to-cook weights
and grades. OC 1-65. Effects of keeping and utilizing proper records on the costs and efficiency
of processing and distributing dairy products. OC 1-66. Effect of dating regulations on costs of milk processing and distribution. OC 1-67. Margins, costs, and trade practices in marketing frying chickens, eggs,
and turkeys in the Northeastern States. OC 1–68. Analyzing price spreads, margins, and costs for grain and feed products, OC 1-70. Costs and efficiency in marketing eastern apples. OC 1–71. Costs and efficiency in operating alfalfa dehydrating plants. OC 1-73. Marketing costs and efficiency and the organization of the California
date industry. OC 2-99. Marketing of products of class III milk in the New York milkshed. OC 2-100. Effect of marketing changes upon marketing costs and upon demand
and consumption of poultry meat.
OC 1-40. Handling practices and marketing costs for Florida sweet corn.
OC 1-42. Power and labor utilization in cottonseed oil mills.
OC 1-47. Impact of St. Lawrence seaway on costs of marketing agricultural
products, with emphasis on grain and grain products.
INFLUENCE OF PRICE ON VOLUME OF FOODS CONSUMED
Mr. WHITTEN. Dr. Paarlberg, I think it will get us into a real depression if raw material prices continue to go down and down. It is my belief that it has led to depressions in the past. It disturbs me to see the press and many national leaders argue that the thing to do is spend more money on defense contracts. Defense contracts, at best, may be essential to our safety, but the defense dollar never contributed an earned income dollar to the Nation in history. It is a dead weight that we have to carry and it would be so much more sound, in my judgment, to see that the base of our economy, which is the raw-material level, got its fair share of the national income dollar.
You and the Secretary constantly insist that by reducing the prices to the farmer you will increase consumption. Now it is my understanding that the lack of food is not what is bothering the United States, that we rather eat too much.
If the people in Florida gave away the citrus on the trees, or the people growing tomatoes in my State, around Crystal Springs, gave them away, or if the fellow producing cotton in my section just gave it to the mills, under our system I honestly wonder whether there would