The True Cost of Middlemen

It is not often that concrete instances are at hand by which a fair comparison can be made between the f.o.b. and the consignment method of marketing farm products. While there are few who will attempt to argue that the farmer stands a chance of better prices by consigning them than by selling f.o.b., it too often happens that the farmer drives home in the evening feeling that he might have done better had he consigned his load of produce rather than to have sold it at a stated price on board cars here. This feeling of 'what might have been' is a stumbling block to successful co-operative marketing. One day last spring during the strawberry season, the Kennewick-Richland Marketing Union were given an opportunity to know what they might have received by consigning berries they sold for $3.00 a crate. The Union had an order from a Montana firm for 65 crates at $3.00 per crate. Thru an error, 75 crates were sent. The buying firm took the additional 10 crates on consignment and remitted the selling price less their usual commission. In due course, the Union received a check for $202.51: $195 for 65 crates at the fixed price, and only $7.51 for the ten crates handled on consignment. This instance tends to show the difference in the farmer’s pay check when he sets the price and when he lets the other fellow set the price. The only way the farmer can set the price is by means of co-operation. If he is willing to work with his neighbor and to stand by his organization, the uncertainties and disappointments of consignments can be effectually eliminated.