Costs of Procuring, Manufacturing and Distributing Mixed Feeds in the Midwest: Case Study of Four Types of Organization
2021
Phillips, Richard
Excerpts from the report Introduction: This study was designed to provide information concerning the relative efficiency of alternative methods of organization and operation in the feed milling and distribution industry. The industry has shown rapid growth and development in recent years, and many different methods and practices of manufacture and distribution have developed. Information concerning the relative efficiency of these different methods and practices has direct value to those charged with planning and directing the operations of feed companies and those of retail feed outlets. Because the farmer is both an important producer of raw materials for the industry and the direct user of nearly all of its final product, he has a double stake in the overall efficiency of the mixed feed industry and the resulting price margin between the producer and the consumer. The present study attempts to deal with this subject by a case study of a number of firms selling feed in the State of Iowa through alternative procurement and merchandising methods. Many of these firms also merchandise feed in other Midwestern States. Four distinct types of organization and operation were isolated for specific study: 1. Premix companies with retailer-manufacturers. 2. Concentrate companies with retailer-mixers. 3. Complete-feed companies with retailer-distributors. 4. Independent retailer-manufacturers.
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