SALE OF BACON

Dominion, Volume 30, Issue 157, 31 March 1937, Page 5

SALE OF BACON

Wholesale Prices Stabilised GOVERNMENT SCHEME A plau for stabilising the wholesale prices for bacon has been formulated by the Internal Marketing Department and will come into operation to-morrow night. The Acting-Minister of Marketing, Hou. W. Lee Martin, said yesterday,’that the scheme would put an end to the chaotic state into which the market had drifted, and at the same time result in a reduction of the wholesale selling price. ‘'For many years past the distribution of bacon on the local market has been in a chaotic state,” said the Minister. “This position has arisen mainly from the fact that the official price list from curer to retailer has been effective in its breach rather than its observance. Ju fact, the price list has varied to retailers from the actual quoted price to a figure perhaps lid. per pound lower than the list price, due to the practice that has developed whereby certain retailers have obtained rebates and concessions of varying amounts. Durihg the past few weeks steps have been taken to discontinue this practice, and a standard net price list will be introduced and rigidly adhered to.” The Minister stated that negotiations had taken place between the New Zealand Bacon Curers’ Association and the Director of Internal Marketing in an endeavour to stabilise bacon prices and the conditions under which bacon was distributed in New Zealand. An alteration in the method of wholesale bacon selling was to take effect from Thursday, April 1, which would result in a reduction of the /n-ociations present wholesale selling price list of an amount varying from Id. to lid. P® r pound. More Uniform Quality.

“In the past,” said Mr. Martin, “bacon has been sold at most Irregular prices and little or no attempt at standardisation has been made on account of the lack of co-ordination in the curing industry. The official list price has become a more or less nominal figure only. Under-cutting by certain curers has resulted in a general uneconomic state among curers and in order to retain their trade certain units hare been forced to accept prices which do not allow for a margin of profit on their undertakings.

“The Internal Marketing Branch is confident that, as a result of the stabilisation plau which has now been agreed upon, a more uniform quality of bacon will be available and curers will not be under the necessity of jeopardising grade to enable them to meet the price. Prices ruling for /raw material, namely pigs, have been on a higher basis this year than for some time past, duo mainly to the increased demand on overseas markets. This factor, combined with added costs of manufacture, lias been causing the curers some concern, and prior to the Internal Marketing Branch becoming interested in the matter, arrangements were practically complete for a general increase in the official list price throughout the Dominion. “The fact that an agreement has now been reached whereby bacon will be sold at a net list price rather than with variable discounts has enabled curers confidently to reduce the level of the list price rather than raise it.”