to 50 percent for cottonseed oil. Retail oil values also fell from their 1947-48 peak when the value of oil in margarine was reduced by about 30 percent and oil in shortening by about 20 percent. Marketing charges or price spreads also adjusted downward for margarine, but not to the same extent that farm oil values did. Shortening margins have increased slightly since 1947-48. SUGAR From 1950 to 1955, the marketing margin, or farm-to-retail spread, increased 15 percent on cane sugar marketed in New York and 24 percent on cane sugar marketed in Chicago (fig. 10). The marketing margin on beet sugar from the midwestern beet producing area marketed in Chicago increased 14 percent. There was a similar increase in the margin on beet sugar produced in the Western States and marketed in Los Angeles, Calif., and Seattle, Wash. There was a 20-percent increase in the marketing margin on beet sugar from the midwest producing area marketed in Chicago. In comparison, the average increase in the farm-to-retail spread on all foods in the market basket was 17.6 percent for the same period. COTTON PRODUCTS Research on margins and costs for marketing cotton, financed with regular funds, shows that the spread between the retail cost per family of 42 representative items of cotton clothing and household furnishings and the farm value of the cotton used in their manufacture increased moderately in 1956 and 1957. However, the spread continued below the highs of the late 1940's and early 1950's (table 4). The farm value of cotton used in 1957 averaged about the same as in the preceding 4 years, but was 20 percent below the high of 1951. Retail cost of these items increased in 1957 for the second consecutive year, but remained about 5 percent below the record 1947 and 1951 levels. These changes resulted in some shifts in the farmer's and marketing system's relative shares of the consumer's dollar spent for cotton textiles. In 1957, the farmer's share averaged 12 percent and the marketing margin 88 percent-the same as in 1947-compared with 15 and 85 percent in 1951. The farmer's share of the consumer's dollar spent for individual items differed considerably from the average and, for some items, the changes over time were marked. For example, farmers received 22 percent of the consumer's dollar spent for overalls in 1951 and 15 percent in 1957. Comparable figures for work shirts were 18 and 14 percent and for business shirts 9 and 8 percent (fig. 11). Although the share of the consumer's dollar going to all marketing agencie has not changed greatly since 1947, several significant changes occurred in th margins of particular groups of agencies. Average margins for manufacturer: 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 retai 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 and of 3 individual articles of clothing, farm value of equivalent quantities of cotton, marketing margin, and farmer's share of retail cost, 1927–57 1 TABLE 4.-Cotton produces: Average retail cost of a family's purchases of 42 articles Annual estimates are simple averages of data for March, June, September, and December. housefurnishings prepared by the BLS. Estimated prices received by farmers for cotton of grade and staple lengths used in the manufacture of 4 Before payment of processing tax which was in effect from August 1933 to January 1936. quantity of cotton required amounted to 37 cents in 1933 and 89 cents in 1934 and 1935. Do Trading Stamps Affect Food Costs, AMS, Marketing Research Report No. Losses from Quality Deterioration and Shrinkage for Corn Resealed on Iowa Development 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 Trading Stamps and the Consumer's Food Bill, Marketing Research Report No. 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 Use 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 Economics Mimeo Report No. 58-1, July 1957. Univ. of Florida in cooperation Conversion of Small Hydraulic Cottonseed Oil Mills Into Higher Oil-Yie' 'ing 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 Marketing Margins and Practices for Turkeys Sold in Three Eastern Markets, Costs and Efficiency in House Packing Western Head Lettuce, California Agri- Case Study of Labor Costs and Efficiencies in Warehousing Formula Feeds, Cost Standards for a Model Stationary Custom Feed Mill for the Midwest, 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. Comparative Costs of Alternative Methods for Performing Specific Operations in Milk Distributors Sales and Costs, issued quarterly. REPORTS ISSUED IN OTHER PUBLICATIONS, JANUARY 1957-FEBRUARY 1958 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- 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- How Do You Sell Your Turkeys? Agricultural Situation, January 1958. Marketing Margins for Dairy Products, The Marketing and Transportation Situ- 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 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. |