Consigning eggs or any other produce to commission men, without a definite understanding, will always be, as it always has been, a source of dissatisfaction and loss. There is a great opportunity here for the man who can organize a system that shall do away with commission houses, other intermediate steps, and form the single step from producer to consumer. Some people say that farmers cannot be dealt with in this manner. Such people would probably have said as much about general merchandising before the days of the mail order houses.
It is all a matter of efficient organization. A system of business fitted to deal in carload lots will, of course, fail when dealing with half cases. It is more difficult to deal in little things than in big ones because the margin is closer, but it can and will be done.
The Price of Eggs.
We will consider the price of all eggs from the quotation of Western firsts in the New York market. The reason for this is evident. Every egg raised east of Colorado is in line for shipment to New York. If other towns get eggs they must pay sufficiently to keep them from going to New York.
In pricing eggs we have first to consider the price of Western firsts in New York and secondly the quality relation of the particular grade to Western firsts and the consequent relation in price.
The price of eggs varies with the price of other commodities as the periods of prosperity and adversity follow one another through the years.
As is well known, all prices in the '90's passed through a period of depression. For eggs this reached a base in 1897. Since then there has been a gradual climb till this realized a high point in 1904, remained high till 1907. In the spring of 1908 egg prices dropped again, but the fall prices of 1908 were exceptionally high. As this work goes to press (May, 1909) eggs are going into storage at the highest May price on record.
The prices of eggs also vary independently of other commodities because of a gradual changing relation between production and consumption. As stated in the first chapter the prices of poultry products have shown a general rise when compared with other articles. This has been most marked since 1900. As for the future we cannot prophesy save to say that there is nothing in sight to lead us to believe that we will not go still higher in egg prices.
A third variation in the price of eggs is the one caused by the seasonal relation of production and consumption. This change is from year to year fairly constant. Its normal may be seen in the scientifically smoothed curve in plate IV. This curve is based upon the New York prices for the last eighteen years.
In addition to these broader influences there are disturbing tendencies that cause the market to fluctuate back and forth across the line where the more general influences would place it.