Economic Aspects of Motor Transportation in Marketing Livestock

Abstract

AN IMPORTANT function of marketing livestock is the physical movement of the live animals from the farm to the market and/or to the packing plant. As livestock, in the present time, has to be transported either by railroad or by motor truck, shippers have to choose between these two alternative methods of transportation. Also, as there is no general rule to be relied upon for determining which method could be used to the greater advantage, shippers have to make a decision as to the mode of transport suitable to each set of circumstances the individual shipper is likely to encounter, i.e., the species of animal, the number of animals shipped, the particular destinations, the type of market (terminal vs. auction), etc. In order to reach profitable decisions, shippers have to make their comparison between railroads and trucks on the same basis. In comparing costs, for example, it is important to begin at the farm and to consider all items of expense until the shipment is delivered at the point at which the shipper ceases to be financially concerned with the process of getting the livestock to the receiver. Such costs include the actual money outlay for the transportation and expenses en route, together with losses from death, crippling, bruising, and tissue shrinkage of animals. In addition, service factors, which are not directly measurable in terms of money, such as convenience, should be taken into account. Such factors are largely a matter of individual judgment, and there cannot be any rule for how much they mean to different individuals. Livestock producers, especially the small producers, may find difficulty in reaching good decisions as to which method of transportation is better. They often need guidance in evaluating the various factors involved. Such guidance could be provided by farmers' organizations and experiment stations. In addition, farmers and shippers can benefit from the experience of their neighbors in the livestock industry by knowing the reasons behind the diversion of livestock traffic from rail to truck or vice versa and the advantages that have attracted shippers to use motor trucks instead of railroads.