HOW WILL PRODUCTION, MARKETING, AND CONSUMPTION BE COORDINATED? FROM A FARM ORGANIZATION VIEWPOINT

the seller, that there is a market price which balances supplies and
sales, that withholding from market after a product is produced is
self-defeating, as quality deteriorates, consumption falls, and the
market gluts when the product is finally offered for sale.

6. Revamp programs of existing cooperatives where necessary.
For some commodities, the trend may be toward more large-scale
marketing associations that handle the product or act as sales agencies.

7. Study the producer’s role in distribution. Increased attention
is being devoted to an appraisal of the advantages and disadvantages
of farmer ownership of some large retail establishments as a means
of achieving greater coordination through the operation of completely
vertically integrated units.

OPPORTUNITY FOR FARM MANAGEMENT
AND MARKETING SPECIALISTS

In the early part of this statement, I predicted that over half of
all the farm commodities produced and sold in the United States in
1975 would involve specification production and marketing contracts.
If this happens, it will create new opportunities for college people
to render helpful services to producers who are striving to cope with
the problems arising out of this changing marketing picture.

May I suggest a few points for your consideration when giving
production, marketing, or financial advice.

1. Is your farmer “just producing” or producing for a known mar-
ket?

2. Is he a member of a successful marketing association with pre-
ferred market outlets?

3. Does his product command a market premium—i.e., meat-type
hog, quality eggs, preferred lamb carcass, etc.?

4. Is his product headed for a good market? Does he analyze
seasonal and cyclical trends, also special market demands for
specific areas?

5. How do his production and marketing costs compare with
those of others? Good farm records will help here.

6. Is he producing and marketing under a vertical integration
contract? He may profit by borrowing from the bank or other
credit institution and buying his own feed and feeders for cash
instead of tying himself to a contract with a feed dealer or a
processor.

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