BULLETIN No. 275 JUNE 1950 EGG PRODUCTION and MARKETING PRACTICES in ALABAMA A Study of 914 Rural Households, 1947-1948 AGRICULTURAL EXPERIMENT STATION Sdse ALABAMA P OLYTECHNIC I NSTITUTE M. J. FUNCHESS, Director AUBURN, ALABAMA CONTENTS Page INTRODUCTION PURPOSE OF STUDY METHOD OF STUDY CHARACTERISTICS OF FAMILIES INTERVIEWED NON-SELLER FAMILIES SELLER FAMILIES ---------------------------- 8 - --------------------------------------------------- 4----------------5 5 5-6 PRODUCTION AND MARKETING PRACTICES OF SELLER HOUSEHOLDS ---------------------------------------------------------GENERAL MANAGEMENT PRACTICES USE OF HOUSES AND EQUIPMENT PREPARATION OF EGGS FOR MARKET MARKETING OF EGGS - -------- ------------------------ 7 9 10 11 12 PRODUCTION SUMMARY .. AND DISPOSITION OF EGGS, .. . . . . . . . . . 1947-48. ..--------------------------------.-------------------------------..---------------------------------------------------------- 19 18 CONCLUSIONS APPENDIX- ...... ...-------------------------------- 22 FIRST PRINTING 5M EGG PRODUCTION and MARKETING PRACTICES in ALABAMA' J. HOMER BLACKSTONE, Associate Agricultural Economist INTRODUCTION keep chickens. According to the M OST 90 per cent of Alabama's farmers in 1945 kept chickens, Census reports, FARMERS IN ALABAMA as compared with 84 per cent for the United States, and 90 per cent for the nation's leading poultry State - Iowa. The average number of chickens kept per farm reporting chickens in 1945 was only 37 in Alabama compared with the United States average of 87 and Iowa's average of 173. The most striking feature of Alabama's poultry industry is the small number of chickens per flock. Census data indicate that 95 per cent of the farms that reported poultry had flocks of less than 100 birds in 1945. The rate of lay per layer on hand January 1, 1948 was reported as 94 in Alabama as compared with 129 for the United States and 136 for Iowa.2 Whether the high percentage of Alabama farms with poultry is the result of the popularity of poultry and eggs as foods, or of the income from chicken and eggs to the rural family, poultry and eggs are an important enterprise in the State's agricultural economy. Egg sales by Alabama farmers averaged $14,660,000 for the period 1947-48.2 Cash income from the sale of chickens and broilers averaged $10,708,000 for the 2 years. Combined, the cash income from the sale of poultry and eggs, excluding turkeys, averaged $25,368,000. In addition to cash sales, about 15 million dollars worth of poultry and eggs were used in the home by farm families in each of these years. Only the cash income from cotton, from cattle and calves, and from hogs exceeded the cash income from poultry and eggs in 1947, while income from peanuts was added to this list in 1948. Enterprises that 1 This study was supported by funds provided by the Agricultural Research and Marketing Act of 1946 and by State research funds. 2 "From Production, Disposition, Cash Receipts and Gross Income, Chickens and Eggs, 1947-48." Bureau of Agricultural Economics, United States Department of Agriculture. April 1949. 4 ALABAMA AGRICULTURAL EXPERIMENT STATION exceeded poultry in cash income were largely commercial enterprises, while income from poultry and eggs in many cases represented the sale of surpluses of products produced primarily for home use. The laying flock of the individual rural family is usually small and receives little or no attention. For example, most farm flocks are given free range and little feed other than scraps and other waste products. As a result of this lack of attention, an average of many thousands of dollars worth of poultry and eggs are imported into Alabama monthly. PURPOSE OF STUDY This study is part of a regional egg marketing research project in which nine southern states and the United States Department of Agriculture are cooperating. 3 The main objective of this phase of the over-all study was to determine the egg marketing methods and related production practices used by rural families. The over-all study represents an attempt to determine both the strong and weak points of present production and marketing practices as related to producers' needs, and to relate these findings to improved marketing methods, techniques, and procedures. This particular report deals only with production and marketing practices found to exist among rural households in Alabama in 1947 and 1948. Other economic reports will deal with the findings of additional studies of egg-buying practices of selected buyers for the same years. METHOD OF STUDY For purposes of this study, families from which information was obtained were divided into two groups. One group, classified as egg sellers, consisted of those families who expected to sell as many as 2 dozen eggs during any one of the months, January through June, 1948. A second group, classified as non-sellers, consisted of those families who did not expect to sell eggs as specified for the seller group. A total of 914 families were contacted by personal interview. Of this number, 687 were non-sellers and 277 were sellers. Data pertaining only to tenure, color, and primary source of income of operators, and size of family, size of farm, and flock inventory were obtained from non-sellers. Additional information relative to production and marketing of eggs was collected from seller households. The questionnaire used for the State study was designed by a regional committee. ing project are: Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, Texas, and Virginia. 8 The nine southern states cooperating in the regional poultry and egg market- EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 5 Schedules of information were obtained by representatives of the Department of Agricultural Economics. The Bureau of Agricultural Economics, United States Department of Agriculture, in cooperation with the Statistical Laboratory at Ames, Iowa, provided the plan for sampling. Using the area sample design, segments in 23 counties were sampled in all areas of Alabama. Detailed maps were used showing geographic segments within each county to be sampled. The segments were confined to open country. The sample included less than 1 per cent of the estimated number of households producing eggs in Alabama. Sampling was done on a household basis, that is, each household within a segment was a sampling unit. The 1386 segments used in the 28 counties of Alabama were drawn so as to obtain a representative cross-section of egg production and marketing practices of families in the open country throughout the State. CHARACTERISTICS of FAMILIES INTERVIEWED Only 82 per cent of the rural households included in this study had poultry, compared with Census estimates of 90 per cent for all farms. Each occupied household within a segment was used as a sampling unit without regard to its classification as farm or non-farm by the Census. According to the Census, only 92 per cent of the rural occupied dwellings were classified as farms. This particular study of poultry practices deals with rural occupied dwellings, and, therefore, it would be expected to show a lower percentage of households with poultry than would be found on Census farms. Of all the households studied, 70 per cent were classified as nonsellers and 80 per cent as sellers. Comparisons of data pertaining to tenure, color, size of family, acres of cropland operated, primary source of income, size of laying flock, and proportion of pullets in the laying flock for seller, non-seller, and all households are shown in Appendix Tables 1 through 7. Poultry was the main source of cash income for less than one-half of 1 per cent of these families in 1947. NoN-SELLER FAMILIES While 7 in 10 of the rural occupied households were classified as non-sellers, 74 per cent of this group had laying flocks. These were usually small and averaged only 17 hens per flock. While this group of families did not qualify as sellers under the definition set up for this study, those families that had poultry would normally produce and 6 ALABAMA AGRICULTURAL EXPERIMENT STATION sell some eggs. The importance of these families is not brought out by the volume of egg production and sales they had individually but by the fact that 5 out of every 7 of these non-sellers had poultry. Based on total egg production for the State, flocks owned by this group would normally produce approximately 40 per cent of all eggs produced in the State, and sales would constitute about 30 per cent of the State's total sales from State production. 4 About half of this production would occur in the 4 months February through May, while about 60 per cent of all sales would be made in this same period. The large volume of eggs being sold in a relatively short period by this group of "non-sellers" is apparently one of the major factors causing the State's spring surplus problem. Of the non-seller families, 67 per cent were white and the remainder colored. Forty-five per cent were owners and 84 per cent were renters. The remaining families were part-owners, sharecroppers, wage hands, or managers. Approximately 37 per cent of these families had no cropland. Altogether, 56 per cent of these families obtained their income principally from non-farm sources. SELLER FAMILIES Three in 10 households visited were classified as sellers under the definition used in this study. Based on total egg production for the State, flocks owned by this group produced approximately 60 per cent of all eggs produced in 1947. Seventy per cent of all eggs sold were produced and sold by families in this group. Approximately 88 per cent of all seller families were white. Sixty-six per cent of the seller families were owners; 20 per cent were renters. The remaining families were part-owners, sharecroppers, or wage hands. Sixty-one per cent of all sellers were white owners; 5 per cent were colored owners. Only 16 per cent of the sellers had no cropland; a high percentage of sellers were cotton farmers. As a whole, most sellers were white farm families who owned their farms. The remainder of this report deals largely with the differences in production and marketing practices found to exist among sellers. 4 Egg production and sales of the "non-seller" group with poultry were assumed to be similar to those of the seller group with less than 25 hens and pullets. EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 7 PRODUCTION and MARKETING PRACTICES of SELLER HOUSEHOLDS From the group of seller families, detailed information was obtained relating to production and marketing practices in 1947 and monthly production and sales for 1948. Although many professional agricultural workers and others connected directly with the poultry industry have advocated improved egg production and marketing practices for many years, little has been known of the exact extent to which these recommendations have been adopted. Most of the practices that will be discussed in this report have some effect on egg production per hen, seasonality of egg production, quality of eggs produced, marketing methods and prices, and/or profits or losses from poultry enterprises. GENERAL MANAGEMENT PRACTICES Seller households averaged 51 laying hens per flock. Thirty per cent of these families had flocks of less than 25 layers. Seventy-five per cent had flocks of less than 50 layers. Only 8 per cent had flocks of 100 layers or more, yet this group produced 38 per cent of all eggs produced by seller families in 1947, Table 1. Only 8 per cent had flocks of 200 or more layers. All flocks of 100 or more layers were owned by white families. Ninety-five per cent of these large flocks was on farms of owners or part-owners, while the remaining 5 per cent was at the homes of white renter families. Practically all sharecroppers and farm wage hand families had flocks of less than 50 layers. Approximately 91 per cent of all sellers had roosters with their laying flocks. However, only 55 per cent of TABLE 1. AVERAGE NUMBER OF LAYERS AND PERCENTAGE OF TOTAL PRODUCTION 277 RIURAL HOUSEHOLDS IN ALABAMA, 19471 AND SALES, BY SIZE OF FLOCK, Rangin laying flock of in size of Average No. of layers per Percentage of household Number 17 33 60 258 51 households Per cent 30 45 17 8 100 All production Per cent 12 81 19 38 100 Total egg Total egg sales Less than 25 layers 25-49 layers 50-99 layers 100 or more layers TOTAL OR AVERAGE 1 Per cent 7 24 18 51 100 Layers include hens and mature pullets. 8 ALABAMA AGRICULTURAL EXPERIMENT STATION the flocks with 100 or more layers had roosters. Ninety-five per cent of the flocks of 100 or more layers was at the homes of families consisting of two to five people. Only a small percentage of the households with less than 50 layers carried out approved management practices. As size of flock increased, however, the percentage of households carrying out such practices as securing baby chicks early, keeping a high percentage of pullets, feeding mash all year, and other approved management practices increased, Table 2. Most households with flocks of 200 or more layers had obtained their baby chicks by early March. Practically all families with flocks of 100 or more layers preferred to buy baby chicks. Some families were either buying baby chicks or setting eggs in practically every month of the year. Seventy-four per cent of all seller households had some pullets in their laying flocks. The percentage of pullets varied from 0 to 100 per cent of all layers. Only a tenth of the sellers had all-pullet flocks. Some all-pullet flocks and some all-hen flocks were found in practically all size ranges studied. TABLE 2. AGEMENT PRACTICES BY SIZE OF FLOCK, PROPORTION OF FAMILIES SELLING EGGS THAT USED SPECIFIED MAN277 RURAL HOUSEHOLDS IN ALABAMA, 1947 Range in size of laying flock Practice used Less than 25 25-49 5099 100 or more Average of all 16 Per cent Had no cropland 23 Per cent 14 Per cent 6 Per cent 18 Per cent 8 91 26 29 25 75 Had 200 or more layers Had roosters with flock 0 92 0 94 26 29 22 75 0 96 27 23 21 77 41 55 14 45 55 68 Laying flock made up of hens only Laying flock made up of 60 per cent or more of pullets Started chicks by April 1 Started chicks by May 1 80 28 23 76 Fed no laying mash Fed laying mash part of the year Fed laying mash all year Confined flock when ground was wet or muddy Kept records of some type NUMBER OF FAMILIES 73 17 10 1 1 82 65 14 21 8 7 125 88 87 25 8 15 48 14 14 72 86 36 22 59 19 22 8 9 277 EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 9 Fifty-nine per cent of the sellers fed no mash to their laying flocks. Sixteen per cent fed mash only for periods of from 1 to 6 months. Three per cent fed mash from 7 to 10 months, and 22 per cent fed mash all year. All flocks of 200 or more layers were fed mash all year. Of the flocks of 100 to 199 layers, 23 per cent were fed no mash, 23 per cent were fed mash only part of the year, and 54 per cent were fed mash all year. Only flocks of 200 or more layers were managed as commercial enterprises. USE OF HOUSES AND EQUIPMENT A total of 64 per cent of the seller families did not have laying houses. However, most of these families used part of some shed or a roosting house as a place for poultry to get out of bad weather. In a few cases, the only roosting place available for poultry was a nearby tree. The percentage of families with laying houses increased as flocks increased in size, Table 3. Only 3 per cent of the sellers did not provide nests for their laying flocks. These families were about equally divided between flocks of less than 25 and those of 25 to 49 layers. A few families provided only one nest for every 10 to 25 layers. Ten per cent of the families used TABLE 3. PROPORTION OF FAMILIES AND EQUIPMENT, BY SIZE OF FLOCK, 277 RURAL SELLING EGGS THAT USED LAYING HOUSES HOUSEHOLDS IN ALABAMA, 1947 Practice used C1H rCss L~ ~~C than-1~~ ~~~L Le Range in size of laying flock I Provided a laying house °ss than 3S: -49 25 25 C PE cent Per cent er 34 26 18 2 1 6 82 12 6 25 6 5 7 50-99 Per cent 38 21 4 4 17 or more 100 Average of all Per cent 82 27 86 32 50 Per cent 36 22 7 6 12 Laying house had no facilities Used dropping pits or boards Enclosed pits or boards with screen wire Used litter in laying house Provided one nest for 4 layers or less Provided one nest for 5 layers or more No nests provided Used electric lights in laying house 73 24 8 2 87 125 44 56 0 4 96 48 27 73 0 32 77 22 67 80 8 4 87 277 0 85 82 Used straw, hay or grass as nesting material NUMBER OF FAMILIES 10 ALABAMA AGRICULTURAL EXPERIMENT STATION such miscellaneous nesting materials as shavings, excelsior, leaves, ground corn cobs, paper, cloth sacks, sawdust, and corn shucks. Two out of the 4 families with 400 or more layers used lights in the laying house. PREPARATION OF EGGS FOR MARKET The most common practice was to gather eggs once daily during the entire year. This practice was followed by 82 per cent of the families, Table 4. A few families gathered eggs two or more times TABLE 4. PROPORTION OF FAMILIES SELLING EGGS THAT USED SPECIFIED PRACTICES IN PREPARATION OF EGGS FOR MARKET AND IN MARKETING EGGS, 277 RURAL HOUSEHOLDS IN ALABAMA, 1947 Range in size of laying flock Practice used Less than 25 Pct. 11 82 7 1 56 43 25-49 Pct. 7 89 4 4 69 27 2 84 18 14 8 2 21 46 3388 90 17 3388 50 18 19 125 50-99 Pct. 10 83 7 2 69 29 0 42 19 17 17 0 17 56 27 94 23 23 54 27 15 48 or more Pct. 50 45 5 23 68 9 5 64 5 45 64 9 41 45 14 95 86 19 45 27 23 22 100 Average of all Pct. 11 82 7 4 65 81 1 87 16 17 18 8 18 48 34 89 19 81 50 23 18 Gathered eggs two or more times daily Gathered eggs once daily Gathered eggs less than once daily Used a wire basket in gathering eggs Used a metal pail in gathering eggs Used other miscellaneous containers in gathering eggs Cleaned stained or dirty eggs by buffing 0 82 Cooled eggs before packing 13 Stored eggs in a cool moist place 16 Sorted eggs for sale on a color basis Packed eggs in cases or cartons for market Sold eggs on a quality (graded) basis Marketed eggs at least twice per week Marketed eggs once per week Marketed eggs at irregular intervals Received market information at various times Always knew local price of eggs before selling Never knew local price of eggs before selling Sometimes knew local price of eggs before selling Sold cracked and/or small eggs Had difficulty in selling eggs at some season of the year NUMBER OF FAMILIES 4 4 10 46 44 84 17 84 49 24 18 82 277 EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 11 daily, while another small group gathered them less than once per day. Numerous objects such as aprons, bowls, boxes, hats, and paper sacks, were used as containers for gathering eggs. Four-fifths of the families gathered eggs once a day, and nearly two-thirds stored their eggs in some type of storage container immediately after gathering rather than waiting for them to cool before storage. Any dirty eggs that were cleaned were usually washed in water or with a damp cloth. The usual place of storing eggs until sold or used was the family kitchen. Eggs were packed for market in many different types of containers. Only 11 per cent of the families used egg cases and 2 per cent used cartons. Twenty-seven per cent used boxes; 23 per cent used paper sacks; 22 per cent used buckets or pails; and the remaining 15 per cent used other types of containers. MARKETING OF EGGS Ninety-seven per cent of the families sold their eggs as "current receipts" throughout the year. The remaining 8 per cent sold eggs on some type of a graded basis, either for part or all of the year, Table 4. Size of flock had no effect on whether eggs were sold as "current receipts" or graded. Fourteen per cent of the families sold eggs biweekly or less frequently. Eighty-nine per cent of the families received egg market news through the following sources: radio and/or newspaper, 39 per cent; local stores, 35 per cent; word of mouth, 14 per cent; and other sources, 1 per cent. Eleven per cent stated that they never received any market news. Receiving egg market news at one time or another did not mean that a family always knew the local price of eggs before making a sale. Actually, only a fifth of the families indicated that they always knew the price of eggs before making a sale. Eighty-two per cent of all seller families reported that they had no trouble selling eggs at some price. Nine per cent reported having difficulty in finding a market during spring months, while 6 per cent reported having difficulty during the summer. An additional 3 per cent reported difficulty in finding a market during both the spring and summer months. Ninety-two per cent of all seller households had less than 100 layers per flock. This group of layers, and these averaged only 3388 seller families with "home flocks" seems to have adopted relatively few recommended production and marketing practices. Only those 12 ALABAMA AGRICULTURAL EXPERIMENT STATION flocks of 200 or more layers were treated by their owners as commercial enterprises. Families with flocks that were essentially commercial followed more of the approved practices in the production and marketing of eggs. However, on a state basis, this group apparently sold less than a fourth of the eggs produced and sold in 1947. Considering sellers and non-sellers as one group, slightly more than half of the total eggs sold by Alabama producers were from flocks of less than 50 layers, while more than 75 per cent of all Alabama eggs sold were produced by "home flocks" of all sizes. PRODUCTION and DISPOSITION of EGGS, 1947-48 For 1948, seller families submitted monthly reports on production and disposition of eggs. Of the 277 families, 207 submitted reports for the entire year. Thus, there was an over-all reduction of 25 per cent in the number of families reporting. Since the percentage of families dropping out was almost identical in each flock-size group, this smaller number of 1948 records was used in the same manner as the 1947 records. Of the total annual egg production, 68 per cent was sold, 80 per cent was used in the home, and the remainder was used as hatching eggs or was wasted during the period 1947-48. The percentage of total production that was sold varied by size of flock, Table 5. Most seller households were able to obtain some egg production in every month of the year regardless of flock size. However, smaller flocks tended to produce a higher percentage of eggs in the spring and summer months than did flocks of 100 or more layers. Percentage of eggs produced, percentage sold, and percentage of families reportTABLE 5. DISPoSITIoN OF EGGS BY SIZE OF FLOCK, ALABAMA, 1947 AND 19481 RURAL HOUSEHOLDS IN Disposition by use Range in size of laying flock Sales Per cent 42 52 65 Home Per cent 55 46 88 Hatching Per cent 8 2 1 Wasted Per cent 2 2 production Per cent 100 100 100 Less than 25 layers 25-49 layers 50-99 layers 1 100 or more layers TOTAL OR AVERAGE 92 68 8 80 2 2 2 2 100 100 1 Based on 277 flocks in 1947 and 207 in 1948. 2 Less than 1 per cent. EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 13 ing sales by months and by size of flock are shown in Appendix Tables 8, 9, and 10. All flocks produced slightly more than a fourth of all eggs laid in 1948 in the months of March and April, Table 6. TABLE 6. PERCENTAGE OF ALL EGGS PRODUCED AND SOLD, AND PERCENTAGE OF FAMILIES REPORTING SALES BY MONTHS, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Average of all flocks Month Families Eggs produced Per cent Eggs sold Per cent 8 11 15 reporting sales Per cent 63 81 93 January February March 8 10 14 April May June 14 11 9 14 11 9 88 83 71 July August September October November December TOTAL 7 6 5 5 5 6 100 6 5 5 5 5 6 57 51 43 37 40 39 -- 100 While seasonality of production indicated something of the surplus problem, the real problem was best shown by sales. As an average of all flocks, about half of all eggs sold were marketed in the 4 months, February through May. Families with less than 100 layers made approximately 60 per cent of all their egg sales in these 4 months, with March and April being the high months. Of all eggs produced and sold in the State by both sellers and nonsellers, approximately 57 per cent were sold in this 4-month period. Regardless of flock size, a higher percentage of eggs were sold in the months of March and April than in any other 2 months of the year. Basically, the problem of uneven distribution of sales was created by a higher percentage of eggs being produced in this period. In addition, a higher percentage of all families were making sales in these months. For instance, 93 per cent of all families sold eggs in March, while only 87 per cent reported sales in October. In addition, a higher percentage of all eggs produced were sold in the spring months than at any other season of the year, Table 7. Some families sell eggs for "cash;" others "trade" all or part of their eggs to a store for other merchandise. Some 82 per cent of the sellers reported that they did not or would not receive a premium on their 14 TABLE 7. ALABAMA AGRICULTURAL EXPERIMENT STATION DISPOSITION OF EGGS BY MONTHS, ALABAMA, 1948 207 RURAL HOUSEHOLDS IN Percentage disposition of eggs by use Month Sales Per cent 68 70 72 68 Home Per cent 31 29 24 26 Hatching Per cent 1 1 4 5 Wasted production Per cent Per cent 1 100 1 1 1 1 1 100 100 100 January February March April May June 68 65 30 33 2 2 100 100 July August September October November December TOTAL OR AVERAGE 59 59 61 62 64 66 66 39 39 38 38 85 34 31 1 1 1 1 1 1 100 100 1 100 100 100 100 100 1 1 1 2 1 1 1 1 Less than 1 per cent. eggs when taken in trade. Of the remaining 18 per cent, 15 per cent reported receiving a premium when they "traded" their eggs. Three per cent did not answer the question. Premiums were reported as varying from 1 to 10 cents per dozen. Five cents per dozen was most commonly reported. Some seller families sold eggs to only one buyer, while others sold to two or more buyers. Buyers were classed as main, secondary, and third types of buyers depending on their importance to each seller. Country stores were the main buyer for 22 per cent of the families, secondary buyer for 9 per cent, and third type buyer for 1 per cent. In all, 32 per cent of the families made sales to country stores. Ninety-four per cent of the seller families made sales to main-type buyers, while 6 per cent made no sales in 1947. Thirty-four per cent of the families made sales to a secondary buyer in addition to a maintype buyer, and 4 per cent made sales to a third-type buyer in addition to making sales to main- and secondary-type buyers. Of all eggs sold by seller families, 89 per cent were sold to main-type buyers, 10 per cent to secondary buyers, and 1 per cent to third-type buyers. Half of the seller families sold eggs to main-type buyers who picked the eggs up at the sellers' homes; a third delivered them a distance of less than 6 miles; and a sixth delivered eggs 6 or more miles to a buyer. The distance that eggs were delivered to buyers varied from less than 1 to more than 18 miles. In the case of sales to secondary buyers, the location of place of sale was about the same as that of main EGG. 'PRODUCTION, MARKETING PRACTICES in ALABAMA 15 buyers except that only 45 per cent of the families were able to sell to a buyer who picked up the eggs at the sellers' homes. Families with less than 100 layers made most of their egg sales in 1947 and 1948 to country stores, rolling stores, and consumers. ConTABLE 8. PERCENTAGE OF ALL EGGS SOLD BY SIZE OF FLOCK TO DIFFERENT KINDS OF BUYERS, RURAL HOUSEHOLDS IN ALABAMA, 1947 AND 1948 1 Range in size of laying flock Kind of buyer Less than 25 Per cent 20 4 32 37 3 2 1 1 2 100 25-49 Per cent 83 3 27 22 6 4 3 1 1 100 50-99 Per cent 17 6 24 34 3 8 1 6 1 100 100 or more Per cent 19 34 6 1 15 9 11 4 1 100 Average of all Per cent 22 20 16 15 10 7 6 3 1 100 Consumer Feed and seed store Country store Rolling store City store Local produce dealer Huckster Cooperative Miscellaneous TOTAL 1 Based on 277 flocks in 1947 and 207 in 1948. 2 Less than 1 per cent. TABLE 9. PERCENTAGE OF ALL EGGS SOLD BY MONTHS TO DIFFERENT KINDS OF BUYERS, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Kind of buyer Month Feed Con- and Coun- CityR Cityd try sumer seed store store store store store Pct. 6 9 13 14 12 11 7 5 5 6 6 6 100 25 Pct. 11 14 15 12 11 7 7 5 3 3 5 7 100 19 Pct. 6 10 17 16 12 10 6 6 6 3 4 4 100 15 Pct. 8 9 18 16 13 8 4 8 4 5 5 7 100 14 store Pct. 9 11 17 15 12 8 7 6 4 8 4 4 100 12 Local AverCooper- pro- Huck- cainMisage Coopeage ative 1 duce ster of neous all dealer neous Pct. 5 18 25 34 12 5 0 0 1 0 0 0 100 1 January February March April May June July August September October November December TOTAL Pct. 6 6 7 3 6 5 11 13 18 11 9 10 100 6 Pct. 22 25 15 15 12 8 1 0 0 2 0 0 100 4 Pct. 9 9 16 15 14 11 6 6 4 2 4 4 100 4 Pct. 8 11 15 14 11 9 6 5 5 5 5 6 100 100 Percentage of all sales 1 Cooperatives included not only egg cooperatives but other purchasing cooperatives which handled eggs. 16 ALABAMA AGRICULTURAL EXPERIMENT STATION sumers and feed and seed stores bought most of the eggs sold by families with 100 or more layers. Consumers bought almost a fourth of all eggs sold by seller families, Table 8. Buying practices were affected by seasonality of sales. Country stores bought nearly six times as many eggs in the month of March as in October, 1948. Consumers bought only twice as many eggs in March as in October. As an average of all sales, three times as many eggs were sold by seller families in March as in October, Table 9. Some differences in prices received for eggs sold by seller households existed between various size-of-flock groups and by kind of buyers. Families with less than 100 layers received a lower average price for eggs during the year than did families with 100 layers or more, Table 10. Families with larger laying flocks tended to sell more of their eggs in the months of higher prices. Volume of sales, kind of buyer, time of year when eggs were sold, and quality of eggs all played a part in determining the over-all yearly price received for eggs. TABLE 10. WEIGHTED AVERAGE PRICES RECEIVED PER DOZEN FOR EGGS SOLD BY SIZE OF FLOCK BY MONTH AND AVERAGE OF ALL, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Range in size of laying flock Month Less than 25 Cents 61.3 53.4 40.5 39.8 39.4 40.7 42.8 46.6 53.3 25-49 Cents 57.4 50.2 40.6 40.4 41.0 42.2 43.3 44.3 50.0 50-99 Cents 60.0 51.8 41.9 44.1 41.5 42.9 43.7 47.5 52.8 100 or more Cents 65.5 53.0 41.9 45.4 45.0 48.1 54.1 55.4 55.8 Average of all Cents 62.8 52.2 41.4 43.4 42.9 44.9 49.1 51.5 54.1 January February March April May June July August September October November December 57.1 60.2 66.6 47.7 59 54.0 59.3 61.6 45.4 94 56.4 61.5 62.0 47.9 37 60.0 64.1 65.0 53.5 17 58.5 63.1 64.4 50.3 207 AVERAGE NUMBER OF FAMILIES Prices that sellers received for eggs sold each month in 1948 varied by kind of buyers. Some of these variations were probably due to volume of sales, time of year in which sales were made, and quality of eggs sold. For the year as a whole, sellers received less from country stores and rolling stores than from cooperatives and consumers, Table 11. Consumers usually paid producers the local retail price for eggs. EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 17 TABLE 11. WEIGHTED AVERAGE PRICES RECEIVED BY SELLERS PER DOZEN FOR EGGS FROM SELECTED KINDS OF BUYERS, BY MONTHS AND AVERAGE OF ALL, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Kind of buyer Month Cooperative Cents Consumer Cents Feed sestore store store Cents City Huck- CountryRollAverage of all ing store store ster Cents Cents Cents Cents Cents January February March 59.4 51.2 41.8 66.4 57.3 47.4 60.2 49.3 41.7 70.4 54.0 41.2 55.5 50.7 42.6 57.3 48.9 38.3 58.5 49.5 36.3 62.8 52.2 41.4 April May June July August September October November December WEIGHTED 49.8 49.7 53.7 62.6 59.2 59.5 61.3 61.5 60.0 57.0 55.8 50.9 45.7 48.2 53.9 56.3 60.6 62.7 69.9 70.3 56.0 57.5 41.8 45.8 47.0 51.8 54.5 56.5 58.4 59.1 62.0 50.7 52.3 41.5 43.9 48.1 49.3 49.8 44.2 55.4 61.0 64.9 49.5 52.0 42.9 43.8 45.4 47.7 51.0 52.0 53.7 55.4 55.5 47.4 49.7 88.2 37.8 38.6 39.7 43.1 48.5 50.8 59.4 61.6 44.2 46.8 36.8 36.4 38.1 37.9 41.1 46.7 53.4 58.3 62.4 43.0 46.3 43.4 42.9 44.9 49.1 51.5 54.1 58.5 63.1 64.4 50.3 52.4 AVERAGE SIMPLE Av. 1 This column includes local produce dealers and miscellaneous buyers in addition to the ones shown. Reports of the Federal-State Crop Reporting Service show that Alabama egg prices decrease as production increases. Conversely, egg prices increase as production decreases. Even though a somewhat rapid decline in egg production occurs in the summer months, prices tend to rise slowly. This slow rise in prices may be partly accounted for by eggs moving out of storage and by the poor quality of eggs sold during this season of the year. Even though most buyers do not grade the eggs they buy, they seem to expect a low quality product during the summer. This low quality is apparently brought about by production and marketing practices of rural families rather than by initial quality of new-laid eggs. A comparison of prices received for eggs by farmers in the United States in 1948 with those received by seller families in Alabama shows that prices in the State were above the United States average in every month except March. During April, May, and June, Alabama prices were only slightly above the United States average. For all remaining months, Alabama prices were much higher than the United States average, with the greatest spread occurring in December, January, and February. Price differences between Alabama and the United States as a whole point to the State's surplus egg problem during the spring months and its deficit of egg production during the remaining 18 ALABAMA AGRICULTURAL EXPERIMENT STATION months of the year. While most families can find a market for the eggs they produce during the spring months, they can do so only at a greatly reduced price. SUMMARY For purposes of this study, families from which information was obtained were divided into two groups. One group, classified as egg sellers, consisted of those families who expected to sell as many as 2 dozen eggs during any one of the months of January through June, 1948. A second group, classified as non-sellers, consisted of those families who did not expect to sell eggs as specified for sellers. Families that were classed as non-sellers comprised 70 per cent of all households surveyed; a fourth of these had no laying flocks. The average flock size owned by non-sellers with layers was 17. While non-sellers did not sell enough eggs to be classified as sellers, they accounted for about 40 per cent of the production and about 30 per cent of the sales of eggs produced in Alabama. Seller families made up only 30 per cent of all households. Flocks of these families average 51 layers. The most common flock sizes ranged from 25 to 49 layers. The seller group accounted for about 60 per cent of the production and 70 per cent of the sales of eggs produced in Alabama. Seller households with less than 50 layers carried out few approved management practices. As size of flock increased, however, the percentage of households carrying out such practices increased. Only a fourth of all seller households obtained baby chicks by April 1. About a fourth of all seller flocks were made up of hens only. Less than a fourth of all seller flocks were fed mash throughout the year. Two-thirds of the seller families did not have laying houses. A fourth had laying houses but no facilities, while 14 per cent had laying houses with some type of facilities. Two-thirds of the sellers provided one or more nests for every four layers. Eighty-two per cent of all sellers gathered eggs once daily during the entire year. Two-thirds used a metal pail or bucket for gathering eggs. A third of the families sold dirty eggs without cleaning them. The usual place of storing eggs until sold or used was the family kitchen. Eighty-three per cent of all families reported selling eggs without sorting by color. Most eggs were sold as "current receipts." EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 19 Eggs were packaged for market in all types of containers; however, few used cases or cartons. Half of all sellers sold eggs only once a week, while a fifth sold twice per week. Only a fifth of the sellers always knew the local price of eggs before making a sale. Only 15 per cent of the families reported receiving a premium when they "traded" their eggs. A fifth of the sellers reported having difficulty finding a market for their eggs. Of the total production in 1947 and 1948, 68 per cent was sold, 80 per cent went to home use, and the remainder was used for hatching or was wasted. Families with small flocks made most of their egg sales to country stores, rolling stores, and consumers. Families with 100 or more layers made most of their sales to feed and seed stores and to consumers. Small flocks tended to produce a higher percentage of eggs in the spring than did flocks of 100 or more layers. All flocks produced about a fourth of all eggs laid in 1948 in the months of March and April. Regardless of flock size, a higher percentage of eggs were sold in March and April than in any other 2 months of the year. Ninetythree per cent of all seller households sold eggs in March, while only 37 per cent reported sales in October. Seller families sold 72 per cent of all eggs produced in the month of March but only 59 per cent of those produced in July and August. Country stores bought approximately six times as many eggs in March as in October. Consumers, however, bought only twice as many eggs in March as in October. Families with less than 100 layers received a lower price during the year for eggs than did families with 100 layers or more. Volume of sales, kind of buyer, time of year that eggs were sold, and quality of eggs played a part in determining the over-all yearly price received for eggs. For the year as a whole, country stores and rolling stores paid less for eggs than did cooperatives and consumers. CONCLUSIONS This study indicates that some of the major factors causing Alabama's spring surplus egg problem are: 1. Half of the eggs produced in the State are produced in the 4 months, February through May. 2. Not only is egg production disproportionately high in the spring but a higher percentage of total production is sold during that season than in any other of the year. For the year as a whole, approximately 60 per cent of all eggs produced in the State are sold. 20 ALABAMA AGRICULTURAL EXPERIMENT STATION 3. Three-fifths of the sales of Alabama-produced eggs occur in the 4 spring months, February through May. 4. Practically all families having poultry sell some eggs during the spring months, while only a third sell eggs in the fall months. 5. Most rural families keep flocks of chickens that are too large for home use and too small for commercial enterprises. Producers who sell eggs regularly throughout the year are widely scattered over the State. Individual sales by most producers account for a small fraction of the total market supply. This creates a difficult problem of assembling a sufficient volume of eggs for more uniform and economical marketing. Since most eggs are sold in the spring, low egg prices prevail for all producers during this season and it is difficult for some producers to find a market. On a state basis, more than three-fourths of the eggs produced and sold come from flocks of less than 200 layers. Only a small percentage of the families with flocks of this size carry out enough approved egg production and marketing practices to assure profitable poultry enterprises. Families with less and to rolling stores. enter the market for the seasonal surplus than 100 layers sell most of their eggs to retail These buyers and special buyers, many of whom only short periods in the spring, handle much of of eggs. Most producers sell eggs as "current receipts." Since the current volume of the State's egg production per flock is small and scattered, it is often difficult to justify expanding present marketing facilities. Unless such facilities are expanded, there is little chance of developing a year-round market for Alabama eggs. Over the year as a whole, too few eggs are produced to satisfy the demand for eggs within the State. There appears to be an opportunity for an expansion of egg production provided it can be accomplished within the limits of available resources and will yield an economic advantage to producers. There is considerable need for an expanded educational program designed especially to reemphasize a better distribution of egg production and marketing throughout the year, improvement of the quality of eggs marketed, and a shift toward either home-sized flocks with no sales or large flocks as commercial enterprises. There is a need for economic studies dealing with efficiency, effectiveness, and profitableness of egg marketing practices of buyers. EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 21 ACKNOWLEDGMENT The author acknowledges the assistance and cooperation of the 914 rural families surveyed, the Regional Committee, and project leader of the regional study, and the Extension Service of the Alabama Polytechnic Institute. Appreciation is also due staff members of the departments of Agricultural Economics and Poultry Husbandry for numerous constructive comments and criticisms. 22 22 ALABAMA AGRICULTURAL EXPERIMENT STATION ALABAMA AGRICULTURAL EXPERIMENT STATION APPENDIX APPENDIX TABLE 1. NUMBER AND PERCENTAGE DISTRIBUTION OF SELLER AND NON-SELLER HOUSEHOLDS BY TENURE OF OPERATOR, HOUSEHOLDS IN ALABAMA, 1947 914 RURAL Seller households Tenure Non-seller households of total Per cent 45 4 34 16 1 100 All households of total Number 468 36 268 130 12 914 Per cent 51 4 29 14 2 100 Number Percentage Number of total Owner Part-owner Renter Sharecropper Other TOTAL Number 182 12 54 28 1 277 Per cent 66 4 20 10 1 100 Number 286 24 214 102 11 637 1 Less than 1 per cent. NUMBER AND PERCENTAGE DISTRIBUTION OF SELLER AND APPENDIX TABLE 2. NON-SELLER HOUSEHOLDS BY COLOR OF OPERATOR, 914 RURAL HOUSEHOLDS IN ALABAMA, 1947 Seller households Non-seller households All households Color Number Percentage Number Percentage Number Percentage of total of total of total Number 245 82 277 Per cent 88 12 100 Number 427 210 687 Per cent 67 3388 100 Number 672 242 914 Per cent 74 26 100 White Colored TOTAL EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 23 APPENDIX TABLE 3. NUMBER AND PERCENTAGE DISTRIBUTION OF SELLER AND NON-SELLER HOUSEHOLDS BY SIZE OF FAMILY, 914 RURAL HOUSEHOLDS IN ALABAMA, 1947 Number of people in family Seller households of total Non-seller households of total Number 25 120 122 128 81 112 49 637 All households Percentage Number Percentage Number Percentage of total Number 31 185 183 172 184 148 61 914 One Two Three Four Five Six to nine Nine or more TOTAL Number 6 65 61 44 53 86 12 277 Per cent 2 24 22 16 19 13 4 100 Per cent 4 19 19 20 13 17 8 100 Per cent 3 20 20 19 15 16 7 100 NUMBER AND PERCENTAGE DISTRIBUTION OF SELLER AND APPENDIX TABLE 4. NoN-SELLER HOUSEHOLDS BY ACRES OF CROPLAND OPERATED, 914 RURAL HOUSEHOLDS IN ALABAMA, 1947 Seller households Acres of cropland Non-seller households All households Number Percentage Number Percentage Number Percentage of total of total of total Number 43 6 80 73 32 22 10 10 1 277 100 None Under 3 3-29 30-49 50-69. 70-99 100-139 140 or more Not ascertained TOTAL Per cent 15 2 29 26 12 8 4 4 1 Number 234 38 188 96 40 16 4 9 12 637 Per cent 37 6 30 15 6 2 1 1 2 100 Number 277 44 268 169 72 38 14 19 13 914 Per cent 30 5 29 19 8 4 2 2 1 100 1 Less than 1 per cent. 24 APPENDIX TABLE ALABAMA AGRICULTURAL EXPERIMENT STATION 5. NUMBER AND PERCENTAGE DISTnmRIoN OF SELLER AND NON-SELLER HOUSEHOLDS BY PRIMARY SOURCE OF INCOME, 914 RURAL HOUSEHOLDS IN ALABAMA, 1947 Primary source of income Seller Non-seller All households households households Number Percentage Number Percentage Number Percentage of total of total of total Number 69 8 115 29 29 10 4 6 4 0 8 0 277 Per cent 25 3 41 11 11 4 1 2 1 0 1 0 100 Number 303 54 141 72 24 22 10 6 0 2 0 8 687 Per cent 48 8 22 11 4 3 2 1 0 1 0 1 100 Number 872 62 256 101 53 Per cent 41 7 28 11 6 4 2 1 1 1 1 1 100 Non-farm Farm-off-farm Cotton Peanuts General farm Fruit, vegetable, or truck Grain Beef cattle, hogs, or sheep Poultry Dairy Other Not ascertained TOTAL 32 14 12 4 2 3 3 914 1 Less than 1 per cent. APPENDIX TABLE 6. NUMBER AND PERCENTAGE DISTRIBUTION OF SELLER AND NON-SELLER HOUSEHOLDS BY SIZE OF LAYING FLOCK, 914 RURAL HOUSEHOLDS IN ALABAMA, JANUARY, 1948 Seller Non-seller All households households households Range in size of laying flock Number Percentage Number Percentage Number totalNumber of of total Number Percentage of total No layers Number 0 Per cent 0 30 45 17 8 0 100 Number 163 386 69 15 8 1 637 100 Per cent 26 61 ' 11 2 1 1 Number 163 468 194 63 25 1 914 100 Per cent 18 51 21 7 3 Less than 25 layers 82 25-49 layers 125 50-99 layers 48 100 or more layers 22 Not ascertained TOTAL 0 277 1 1 Less than 1 per cent. EGG PRODUCTION, MARKETING PRACTICES in ALABAMA 25 APPENDIX TABLE 7. NUMBER AND PERCENTAGE DISTRIBUTION OF SELLER AND NON-SELLER HOUSEHOLDS BY PROPORTION OF PULLETS IN LAYING FLOCKS, 914 RURAL HOUSEHOLDS IN ALABAMA, 1947 Kind of flock management Seller Non-seller households households Number Percentage Number Percentage of total of total Number 27 15 88 64 50 10 78 0 0 277 Per cent 10 5 14 23 18 4 26 0 0 100 Number 42 12 37 66 60 16 240 163 1 687 100 Per cent 7 2 6 10 9 2 88 26 1 All households Percentage of total Number 69 27 75 180 110 26 818 163 1 914 100 Per cent 8 3 8 14 12 8 84 18 All pullets 80-99% pullets 60-79% pullets 40-59% pullets 20-39% pulles 1-19% pullets All hens No layers Not ascertained TOTAL 1 Less than 1 per cent. APPENDIX TABLE 8. PERCENTAGE OF EGGS PRODUCED BY MONTHS BY SIZE OF FLOCK, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Range in size of laying flock Month Less than 25 Per cent 8 10 14 13 10 9 8 7 6 5 4 6 100 25-49 Per cent 7 10 15 15 12 10 7 6 5 5 4 4 100 50-99 Per cent 8 11 16 14 11 10 7 6 4 3 5 5 100 100 or more Per cent 9 10 12 12 11 8 6 6 6 6 7 7 100 Average of all Per cent 8 10 14 14 11 9 7 6 5 5 5 6 100 January February March April May June July August September October November December TOTAL 26 ALABAMA AGRICULTURAL EXPERIMENT STATION APPENDIX TABLE 9. PERCENTAGE OF ALL EGGS SOLD BY MONTHS BY SIZE OF FLOCK, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Month Less than 25 Per cent 10 12 18 15 12 8 6 4 4 2 3 6 100 Range in size of laying flock 25-49 50-99 100 or more Per cent 7 11 18 16 12 10 6 6 5 4 3 2 100 Average of all Per cent 8 11 15 14 11 9 6 5 5 5 5 6 100 January February March April May June July August September October November December TOTAL Per cent 9 12 18 15 12 9 6 5 3 2 4 5 100 Per cent 9 10 12 12 11 8 6 6 6 6 7 7 100 PERCENTAGE OF FAMILIES REPORTING SALES BY MONTHS APPENDIX TABLE 10. BY SIZE OF FLOCK, AND AVERAGE OF ALL, 207 RURAL HOUSEHOLDS IN ALABAMA, 1948 Month Less than 25 Per cent 59 Range in size of laying flock 100 50-99 25-49 or more Per cent 61 Average of all Per cent 63 Per cent 68 Per cent 82 January February March April May June July August September October November December 73 92 81 75 66 44 86 32 20 25 24 82 91 89 83 69 55 52 43 40 40 38 81 97 95 92 78 65 54 43 35 46 49 100 94 94 94 88 88 88 82 82 71 76 81 93 88 83 71 57 51 43 37 40 39