BREAD PRICES

Southland Times, Issue 21949, 25 February 1933, Page 6

BREAD PRICES

INCREASE FROM MARCH 1. STATEMENT BY MASTER BAKERS. In our advertising columns it will be seen that the master bakers of Southland have agreed that from March 1 the price of the 41b loaf will be advanced by Id. This arrangement has been reached following many meetings of the trade to deal with the price war which has existed for some time with disastrous results to the bakers. It is stated that it will be readily seen that the people of Southland are still fortunately situated when it is realized that this brings the standard to the level of Sydney, although flour there is £5 12/6 per ton cheaper than in Invercargill. About two years ago the Department of Industries and Commerce, after an exhaustive investigation, reported to the House of Representatives _ that bakers were by no means receiving a high margin of profit on first quality bread which at that time was being sold locally over the counter at 1/Jd. per 41b. loaf. Allowing for the drop in the price of flour since that time, it warranted a reduction of Id. only according to the report laid on the table of the House. It is considered that it would have been entirely reasonable to have retailed the loaf in Invercargill at the present time at 11-Jd., as against the new standard price of lOd. on March 1.

“The fact of the matter is,” said one baker to a Times reporter yesterday, “recent drastic increases in costs, particularly with the cost of distribution, have compelled bakers throughout New Zealand to review their small and entirely unremunerative delivery charges, which is only one factor in a complicated situation.”