BLOW FOR BAKERS

Poverty Bay Herald, Volume LXVI, Issue 19868, 20 February 1939, Page 6

BLOW FOR BAKERS

NEW RISE IN COSTS FLOUR PRICES INCREASE GROCERS’ ADVANTAGE OFFSET TO “NO-RETURNS” “Bakers in the cities may derive a substantial benefit from the new regulation which bars the storekeepers from returning stale bread, but it is extremely doubtful if provisional bakers will be assisted by the regulation. Storekeepers vraturally will limit their supplies to orders only, and the bakers will lose a lot of sales which up to the .present they have made through the storekeepers,” stated a prominent member of the trade in Gisborne to-day.

“The Government appears to be taking much satisfaction from this regulation. which is described as a measure to assist the trade in keeping costs down,” ,he continued. “The city bakers will be relieved of certain costs, of course, simply because the regulation will cut out competition in respect of casual sales through the retailers.

“Up to the present in most cities the storekeepers have been inundated with supplies by bakers who thought it necessary to compete in this field. That waste will be cut out, certainly, but a lot of suburban people who find they cannot buy bread in their local stores, except by way of regular orders, simply will go without at times.

Returns Few in Gisborne

“Here in Gisborne, the return of stale loaves has never assumed seriousness for the bakers. The capacity of the different stores ,is fairly well known, and bakers have not worked up competition to any high level in supplying the stores. Hence we have had a small proportion of returns only. The loss of goodwill with the public may cost us more than we will save under the compulsion of this regulation.

“The desire of the Government to save costs to the bakers in this direction can be well understood. Bakers in this district have just been advised of a further rise in the cost of flour supplies, the new price being 7s 9d per ton above that previous ruling. The extraordinary feature of this rise .'s that it applies to bakers only, and that grocers now can get their supplies for retail sale more cheaply than the bakers can get them. Substantial Cost Increase

“The position at the moment is that a home ‘baker can buy a small supply from the grocer at little more, if any, than we pay for our supplies from the Wheat Committee. .No wonder the Government ,is anxious to find some offset to the increase in flour prices!” The manner in which costs have increased in the baking trade was illustrated by figures supplied by the Gisborne manufacturer. From these figures the following tabulation was prepared, to show prices of leading items of bakers’ requirements, as at January, 19315, and February, 1939: 1936 1939 Per ton Per ton £sd £ s d Wholemeal flour 12 3 9 14 17 9 White flour 13 3 3 14 17 9 Canadian flour 18 7 0 21 17 (5 Salt 7 10 0 7 17 0 Fuel oil 0 9 4 9 16 6 In addition to these rises in costs, the bakers in Gisborne have had to meet increases equivalent to 57£ per cent in journeymen’s wages, with reductions of weekly hours by 4J per cent; and 213 per cent in drivers’ wages, with a reduction in hours equivalent to 84 per cent. The prices quoted above are the actual costs, net, delivered into store. Over-all. the increases in costs amount to approximately 3d .per loaf on Gisborne sales.