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Price Spreads for Formulated Poultry Feeds in Illinois

Author

Listed:
  • Brensike, V. John
  • Vosloh, Carl J., Jr.

Abstract

Excerpts from the report: The manufacturer-wholesaler margin as used in this study is the difference between the wholesale price of formulated poultry feed and the actual cost of the ingredients. The retail margin is the difference between the wholesale price of the poultry feed and the retail price paid by the farmer for that particular type of feed. The farmer's share is the price received by the farmer for the equivalent ingredients in a particular type of poultry feed, expressed as a percentage of the retail price paid by farmers for that type of feed. All of these price spreads or margins are expressed as percentages and are used to show trends. Formulas used in this study were selected from those published in the 1947 and 1957 editions of the Feed Trade Manual. The recent formulas, both high and low grain, contain more grain than the earlier formulas, as well as ingredients such as vitamins and antibiotics which the earlier formulas did not include. Formulas for both years were used in this study. The objectives of this study are to analyze for poultry feeds (1) the value of price spreads for any one of these formulas as indicators of the actual size of margins--for example, the gross margin for the manufacturer-wholesaler--for a particular type of feed; (2) the value of price spreads for any of the formulas as indicators of trends in margin size; and (3) the factors that have influenced either the actual margin or trends in the margin.

Suggested Citation

  • Brensike, V. John & Vosloh, Carl J., Jr., 1960. "Price Spreads for Formulated Poultry Feeds in Illinois," Marketing Research Reports 311238, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
  • Handle: RePEc:ags:uamsmr:311238
    DOI: 10.22004/ag.econ.311238
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