BAKERS’ PROFITS.

Star (Christchurch), Volume XLIV, Issue 145, 20 June 1931, Page 9

BAKERS’ PROFITS.

SYDNEY AND CHRISTCHURCH COMPARED. A great deal of misunderstanding has been removed by the report of the Department of Industries and Commerce presented to Parliament in April of this year. The following extract is particularly illuminating:—“lt is interesting to note the relation of the cost of bread in Sydney to the cost of flour, and to compare this with the position in a representative centre such as Christchurch. The selling price of flour to bakers in Sydney fixed recently by the New South Wales Government is £lO per ton. The baker from one ton of flour will obtain 660 41b loaves, the present selling price of which is lOd per loaf, cash over counter.

The gross margin in each case is the amount available to provide cost of manufacturing, delivery to shops, overhead expenses and profit, and retailers’ margin.” The Sydney baker obtains 660 41b loaves as against the Christchurch baker’s 650, because Australian flour has greater water absorption. The pdint to fiote is that the Christchutch baker works upon a considerably smaller margin than does the Sydney baker. In conclusion, the report specifically stated that New Zealand bakers were not in general securing a very high margin of profit. 10

AUctL) U \ Cl LUU11LC1 £ s. d. The gross return will fore be there10 0 Deduct cost of flour 0 0 Gross Margin 10 0 The position of the Christchurch baker is as follows:— £ s. d. 650 41b loaves at Is .. 10 0 Cost of 1 ton flour .. 16 c 8 Gross Margin ... 3 4