COST OF BACON.

Hawke's Bay Tribune, Volume XII, Issue 242, 26 September 1922, Page 2

COST OF BACON.

PRODUCING COMPANIES TRADING AT A LOSS. STATES BOARD OF TRADE. “Inquiries have been made from time to time during th© war relative to bacon prices and prices paid for pigs. It is apparently not generally realised that, apart from the difference between liv© and dressed weights, there is a very considerable shrinkage in weight tho_curing process* It has been snown that a carcase weighing 1501 b (dressed dead weight) will produce approximately only 10011* of bacon and ham. The cost of curing has been found to represent approximately per pound of the finished product. When sold retail in the form of rashers there is a further loss of saleable weight to the extent of the bone contained in sides. These factors, together with such items as railage from point of purchase of livestock to factory, and losses through condemnation of~ diseased animals, are sufficient to account for what has appeared to be an unreasonable margin between live-stock prices and the retail selling-prices of bacon and ham. “The financial results of operations by bacon-factories during the past two years are such that no objection can possibly be raised against the prices which have ruled. The producing companies have, in fact, been trading st considerable loss. The margin secured by distributors has been nothing more than adequate, in fact, during recent months this margin has been considerably lower than is normadv considered ' necessary in businass of this nature.”—Board of Traded arnual report.