THE DEMAND FOR QUALITY EGGS IN THE CHICAGO RETAIL TRADE

259 Pages·09.206 MB·English

by  BROADBENT, EMER ELWOOD

COPYRIGHTED
by
mm ELWOOD BROADBENT
1951
THE DEMAND FOR QUALITY EGGS IN THE
CHICAGO RETAIL TRADE
BY
EMER ELWOOD BROADBENT
B.S., Utah State Agricultural College, 1942
M.S., Utah State Agricultural College, 1947
THESIS
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN AGRICULTURAL ECONOMICS
IN THE GRADUATE COLLEGE OF THE
UNIVERSITY OF ILLINOIS, I960
URBANA, ILLINOIS
UNIVERSITY OF ILLINOIS
THE GRADUATE COLLEGE
AUGUST. .8., _ 1950
I HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER MY
SUPERVISION BY. -_EMER_ELWQOD BROADBENT
ENTITLED THE DEMAND FOR QUALITY EGGS
IN THE CHICAGO RETAIL TRADE
BE ACCEPTED* AS FULFILLING THIS TART OF THE REQUIREMENTS FOR
THE DEGREE OF. DOCTOR OF PHILOSOPHY
/vt?l(^v
Head of Department
Recommendation concurred inf
JyQju/
Committee
f ^zr
jlMt^
on
ITM^LJMO -A- J&€4<e*zM- Final Examinationt
* Subject to successful final examination in the case of the doctorate.
t Required for doctor's degree but not for master's.
6M—12-48—401WK
ACKNOWLEDGMENT
The writer expresses appreciation to Dr. H. C. M. Case,
Head of the Department of Agricultural Economics, University of
Illinois, who through his administration made possible the
research which forms the basis of this thesis; to Dr. L. J.
Norton, thesis advisor, who inaugurated this egg marketing re
search, for counseling in the organization of the study and
preparation of the manuscript and for critically reading the manu
script and offering many helpful suggestions for its improvement;
to Dr. J. Fred Bell for critically reading and suggesting changes
in certain chapters; to the major chain store companies and
dairies in Chicago who made confidential records available for
this study; and to his wife, who was a constant source of encourage
ment and help during the entire period of his graduate study.
ii
TABLE OF CONTENTS
Page
LIST OF TABLES v
LIST OF FIGURES xi
Chapter
I. INTRODUCTION 1
The Market 4
Objectives 7
Source of Data 8
Definition of Terms 13
II. ORIGIN, MARKET CHANNELS, AND INTEGRATION
OF FUNCTIONS 18
Origin 18
Market Channels 32
Integration of Marketing Functions 36
III. CONDITIONS OF MARKET, SEASONAL PATTERN
OF SALES AND PRICE DIFFERENTIATION 42
Conditions of Market 42
Seasonal Pattern of Sales 55
Price Differentiation by Grade at Retail . .. 62
Price Differentiation by Weight 68
IV. NET COST, RETAIL VALUE AND MARGINS FOR
EGGS SHIPPED TO OUTLETS 78
Percent of Value and Volume Comparisons
by Grade 78
Net Cost by Grade 89
Margins by Grade 93
Percent Gross Margin by Grade 100
iii
TABLE OF CONTENTS
Chapter Page
V. EGG SHIPMENTS TO OUTLETS BY FIRMS, THEIR
NET COST, RETAIL PRICE AND MARGINS 105
Net Cost Comparisons by Firms 105
Margin Comparisons by Firms 107
Comparative Net Cost, Retail Price
and Margins 114
Egg Shipments to Outlets 123
VI. SUMMARY AND CONCLUSIONS 156
BIBLIOGRAPHY 170
APPENDIX A. U. S. Standards for Quality of
Individual Shell Eggs, U.S.D.A 173
APPENDIX B. Supplemental Tables and Figures 187
VITA 241
Iv
LIST OF TABLES
Page
Ratio of Eggs Received by Firms In This Study,
to U.S.D.A. Report of Receipts by Chain Stores
and Milk Distributors, 1947 10
Ratio of Eggs Received by Firms in This Study,
to U.S.D.A. Report of Receipts by Chain Stores
and Milk Distributors, 1948 11
Ratio of Eggs Received by P'irms in This Study
to U.S.D.A. Report of Receipts by Chain Stores
and Milk Distributors, 1949 12
Adjusted Origin of Eggs Sold at Retail on a
Graded Basis by Firms In This Study,
Percentage by States, Chicago Market, 1947 . . .. 21
Adjusted Origin of Eggs Sold at Retail on a
Graded Basis by Firms In This Study,
Percentage by States, Chicago Market, 1948 . . .. 22
Adjusted Origin of Eggs Sold at Retail on a
Graded basis by Firms in This Study,
Percentage by States, Chicago Market, 1949
and Summary 23
Adjusted Origin of Eggs Sold at Retail on a
Graded Basis by Firms in This Study,
Chicago Market, 1947 24
Adjusted Origin of Eggs Sold at Retail on a
Graded Basis, by Firms in This Study,
Chicago Market, 1948 25
Adjusted Origin of Eggs Sold at Retail on a
Graded Basis, by Firms in This Study, Chicago
Market, 1949 and Summary 26
Comparative Retail Prices for Various Grades
of Eggs 63
v
LIST OF TABLES
Table Page
11. Index of Sales of A. Extra Large and A.
Large Eggs and Ratio of Dairy to Chain Sales . . .. 67
12. Price of A. Extra Large Eggs Compared to
Weight Value of Other Grades Sold by Firms in
This Study of the Chicago Market, 1947 71
13. Price of A. Extra Large Eggs Compared to
Weight Value of Other Grades Sold by Firms in
This Study of the Chicago Market, 1948 72
14. Price of A. Large Eggs Compared to Weight
Value of Other Grades Sold by Firms In This
Study of the Chicago Market, 1947 73
15. Price of A. Large Eg^s Compared to the Weight
Value of Other Grades of Eg?s Sold by Firms in
This Study of the Chicago Retail Market, 1948 . .. 74
16. Net Cost, Retail Valtie, Gross Margin, and
Percent of Gross Margin, by tirade, for All
Eggs Sold 79
17. Percent of Eggs Sold by Grade for Sample
Firms on Chicago Retail Market 84
18. Percent of Total Value by Grade of Eggs Sold
by Sample Firms on Chicago Retail Market 85
19. Percent of Total Value, Total Volume, and
Margins, by Grade of Eggs Sold on This Market . .. 86
20. Comparative Net Cost to Retailers by Grade of
Eggs Purchased in This Study 90
21. Comparative Periods of Highest, Lowest and
Average Margins 99
22. Percent Gross Margin by Grade Received by
Representative Firms on the Chicago Market 101
23. Percent of Gross Margin Taken by Firms on
Chicago Market, 1947-1949 115
24. Comparative Net Cost by Firms 118
25. Comparative Retail Prices by Firms 119
vi
LIST OF TABLES
Table Page
26. Comparative Margins by Firms 120
27. Index of Egg Shipments to Retail Outlets,
by firms, Chicago Market, 1947 124
28. Index of Egg Shipments to Retail Outlets,
by Firms, Chicago Market, 1948 125
29. Summary Data for Grades of All Eggs Sold
by Firms from January 1, 1947 through
April 23, 1949 166
30. Summary of Average Net Cost, Retail Value
and Margins by Grade 167
31. Summary Data by Firms for Eggs Sold 168
Appendix Tables
32. Comparative Egg and Poultry Statistics
Illinois - North Central States and United
States 1900-1949 188
33. Origin of Eggs Sold at Retail on a Graded
Basis by Representative Firms, Chicago Market,
1947 189
34. Origin of Eggs Sold at Retail on a Graded
Basis by Representative Firms, Chicago Market,
194a 190
35. Origin of Eggs Sold at Retail on a Graded
Basis by Representative Firms, Chicago Market,
1949 and Summary 191
36. Origin of Eggs Sold at Retail on a Graded
Basis by Representative Firms, Chicago Market,
1947 192
37. Origin of Eggs Sold at Retail on a Graded Basis
by Representative Firms, Percent by States,
Chicago Market, 1948 193
vil
LIST OF TABLES
Page
Origin of Eggs Sold at Retail on a Graded
Basis by Representative Firms, Percent by
States, Chicago Market, 1949 and Summary 194
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms for A Extra Large Eggs, Chicago
Retail Market, 1947 195
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms for A Large Eggs, Chicago
Retail Market, 1947 196
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms for A Medium, A Small, and
Current Receipt Eggs on Chicago Retail
Market, 1947 . . 197
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms for b Large Eggs, Chicago Retail
Market, 1947 198
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms for A Extra Large Eggs on
Chicago Retail Market, 1948 199
Retail Price, Net Cost, and Margin i-er Dozen
for A Large Eggs on Chicago Retail Market, 1948 . 200
Retail Price, Net Cost, and Margin Per Dozen
Eggs by firms for B Large Egcs on Chicago
Retail Market, 1948 201
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms for A Medium, A Small, and
Current Receipt Eggs on Chicago Retail
Market, 1948 202
Retail Price, Net Cost and Margin Per
Dozen Eggs by Firms on Chicago Market, 1949 . . . 203
Retail Price, Net Cost, and Margin Per Dozen
Eggs by Firms on Chicago Market, 1949 204
Retail frice, Net Cost, and Margin Per Dozen
Eggs by Firms on Chicago Market, 1949 205
viii