essential to an effective marketing system and may greatly strengthen
community life. If, however, there be two or three elevators in a little
village, each operated for profit by a private owner, where all the
business could be more economically handled by one concern and where the
competition creates friction and suspicion, then like the rivalry
between an excessive number of churches, they tend to divide the
community.
Students of marketing problems seem agreed that better marketing systems
will benefit the farmer through greater efficiency which will reduce the
costs of the process rather than through greater profits from higher
prices, and that in many lines the largest improvement is possible in
the grading, packing, and shipping from the local station. This being
the case, it seems obvious that the solution of the marketing problem
will increasingly depend upon community action.
Better transportation and storage facilities tend to stabilize prices
over large areas and to give the larger markets increasing advantage in
bargaining for the farmer's products. Not that there is any concerted
action upon the part of the buyers to take an undue advantage of the
farmer, for there is usually keen competition between them, but
inevitably the "centralization" of the buying power of the larger
markets makes it possible for them to very largely determine the price,
just as the large employers of labor can to a considerable extent
determine the wages they will pay if labor is unorganized; for whenever
there is a surplus the individual farmer must sell, while the buyer can,
within limits, purchase where or from whom he chooses. Thus for the same
reason that labor is forced to organize trade unions to maintain its
wages and working conditions, farmers are forced to organize to market
their products together and to bargain collectively for their price.
This is the outstanding agricultural movement of the past decade and at
the present time is so successfully challenging the established system
of marketing as to command national attention. The success of such a
movement depends primarily upon the solidarity and efficiency of the
local units, so that collective bargaining requires the organization of
the agricultural community into selling associations for its various
products. The whole process encourages the economic organization of the
rural community and heightens community consciousness through the effort
of its members to defend their common economic interests.
The method of collective selling may vary, but in practice the
cooperative selling association has proven the most satisfactory and
will be discussed in the following chapter.
Public-domain text, read in full here on John Shaqi.
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