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Abstract

Farm-retail spreads for medium turkeys in five major cities in the United States averaged 9 percent wider in the heavy marketing season, October-December, of 1960 than a year earlier. All of the increase was the result of a rise in retail store spreads, which are influenced largely by retail store pricing policies. The spread between prices paid by retailers and received by farmers decreased. Except for one year, the farm-retailer spread has decreased annually since 1956. This downward trend probably was due to: (1) Concentrations of turkey processing in fewer but larger plants, (2) movements toward more complete vertical integration or market coordination in the turkey industry, and (3) innovations in equipment and technology which reduced costs. Year-to-year fluctuations in the retail store spread, however, have resulted in similar fluctuations in the total farm-retail spread.

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