Cost of Bacon

Te Aroha News, Volume XXXIX, Issue 6279, 28 September 1922, Page 3

Cost of Bacon

Producing [Companies Trading at a Loss STATES BOARD OF TRADE ‘"lnquiries have been made from time to time during the year as to bacon prioes'and prices paid for pigs. It is apparently not generally realised that, apart from the difference between live and dressed weights, there is a * very considerable shrinkage in weight daring the cnring prjcess. If has been shown that a carcase weighing 1501 b (dressed dead weight) will produce approximately only 1001 bof bacon and bam. The cost of cnring has been found to represent approximately 2£d per pound of the finished product. When sold retail in the form of rashers there is a further lore of saleable Iweight to the extent of the bone contained in sides. These factors, together with such items as railage from point of purchase of live, stock to factory, and losses through condemnation of diseased animals, are sufficient to account for what has appeared to In an nmeasonab’e margin between live-stock prices and the retail selling-prices of bacon and bam. “ The financial results of operations by bacon-factories during the past two years are such that no objection can possibly bo raised against the prfees whiob have jnted. The producing companies have, io fact, been trading at considerable loss. The margin seemed by distributors has been nothing more than adequate, and in faot, daring recent months this margin has been considerably lower than is normally considered necessary in bu’iness of th's nature.’’—Board" of Trade’s annual

report. 1 m i '