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The reason why the foreign producer gets his produce to market cheaper, relatively, is this-that foreign produce is collected and brought in such large quantities and is sent in great masses to the market. That is the secret of cheap carriage...We must try to make our pounds of produce into tons-or must bring together a number of producers. If you small agriculturists can collectively offer a great bulk of merchandise to the railway companies, they will give you good terms.

William Ewart Gladstone#23

AgricultureCollaborationCooperationEconomicsLogisticsProductionTrade

About this quote

What does it mean?
Gladstone argues that economies of scale reduce transport costs, urging small producers to unite and sell in bulk to negotiate better railway rates.
In plain terms
Small farmers should band together to sell large quantities so they can get cheaper shipping rates.
What can you take from it?
Cooperate to achieve bulk shipping discounts.

Where it applies

  • small farmer cooperatives
  • supply chain management
  • railway freight negotiations

Putting it to work

  • form producer cooperatives
  • aggregate merchandise for shipping
  • negotiate bulk transport terms

Questions to consider

  • How can small producers organize effectively?
  • What barriers exist to collective bargaining?

Another view

Collective action can be difficult to organize among independent producers.

More from William Ewart Gladstone

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