Thursday, October 12. 1972
University Daily Kansan
7
Grocers Cut Beef Prices
By DON JEFFERSON Kansan Staff Writer
Meat retailers in the Lawrence area are lowering their prices on beef, despite the appearance last Thursday of a USDA "market basket" report which indicated
The report indicated that retailers nationally widened the beef-price gap between farmers and consumers to a record margin in August, thus failing to pass along to shoppers recent declines in cattle prices.
Area retailers, however, agree that the report shows instead a lag between the fall of cattle prices and the reduction of retail prices.
Louis Lehr, owner of Lehr's Wholesale Meats, 546 Mississippi, said Tuesday that the company recently excels a pound since high summer cattle markets. He said the only items which had not fallen in price were ground products and beef, which is steady because of high bull meat costs.
"You've got to move it to what we arePrice according to what we pay and the rate we charge."
"FOR EXAMPLE," he said, "top siron steakus have fallen from this summer's price of $2.89 a pound to a present $2.29 a pound."
Lehr said the most marked decreases this fall were in he prices of the more expensive cuts such as steaks. Lower prices also led to less pronounced price decrease he said.
Jack Harris, RFD 2 meat cutter for Lehr's meats and farmer, said there was a natural lag between the change in the cattle market and retail prices. It is complicated to assess the effect of this lag because it is connected to constantly change the prices. he said.
Leroy Crumet, meat department manager for Rusty's Hillcrest, said that when the prices on beef started to go down, the restaurant "overboard" with price reductions.
"OUR PROFITS are down because we ticed so hard to keep the prices down," he laughed.
According to local retailers, the wholesale price of choice carcass beef—a major indicator of the price of retail cuts—declined from around 63 cents a pound during the last days of August to a low of $1.49 per pound in a pound the second week of September.
This decrease, they agreed, was the
result of the decreasing prices in the cattle market.
The decline of prices in the slaughter cattle market, according to Kansas City USDA market reporter Jim Upton, is due to a multitude of factors.
"Basically," he said, "the whole thing operates on the law of supply and demand."
THE WINTER and summer months are generally periods of high cattle markets and late spring and early fall are usually declining because of a large supply attributed to a large supply of slaughter cattle in the spring and fall, a disappearing trend because of improved production methods. Also a factor is a decrease in the amount of snow during the winter months, he said.
Upton said slaughter cattle prices were generally higher this year than last. During the last week of September, the average price paid for choice slaughter animals was $34.16; $34.36 a hundredweight as compared to $31.72 during the same period of 1971.
EVEN So, Upton said, the price is down considerably from this year's summer season.
The decline cut into cattle producers' profits because of the producers' relatively fixed costs of feed, yardage, death deprivation, and so forth, be said.
According to E.L. Van Meter, Douglas County agricultural extension agent, cattle producers have made more money during the past two years than they had during the last year, making during the preceding 20 years, so, no, he termed cattle production "risky."
He said the approximate cost of raising a calf to a choice slaughter animal was about $20 to $30 a weight-hunting. At the other end, it would cost producers receive $30 to $50 a head profit.
HOWEVER, THE average animal goes through the hands of three owners, he said. Thus, the profits are divided between them. Of course, he said, any of the owners might take a loss or disproportionate share of the profit depending on his luck.
When it attains the proper "finish" and weighs from 1000 to 1200 pounds, the animal is sold to a packing house for slaughter, he said.
Vic Stensrud, general manager of Kansas City parker, Wilson & Co., confirmed Friday that the price of carcass been declined in response to the cattle market.
"We lowered the price to remain competitive," he said. "We don't make any money on carcass beef anyway, so the lowering of the price was to assure that we
STENSRUD SAID that the sale of carcass beef by Wilson's usually loses money. The profits and cost of slaughter come from the sale of by-products, notably the hide, and the sale of processed meats as weiners, lunch meat, and dried beef.
The mark-up of the price between life and carcass costs merely compensates for the loss.
According to the Agricultural Research Division of Swift & Co., a 1000-pound steer yields only 550 pounds of carcass beef, 62 pounds of hide, 85 pounds of other by-products, and 303 pounds of shrinkage and valueless material.
Only the most modern and efficient plants are able to make the sale of carcass beef worthwhile, he said. He especially noted plants which have moved away from the cities to the source of the cattle supply, such as Iowa Beef in Emporia, Farmand in Garden City, Swift & Co. in Guyton, Oka, and Wilson in Hereford, Tex.
LARRY VERHING, general manager of Dugdaite Packing Co. at st. Joseph, Mo., confirmed Stensrud's remarks. He con-
tended to ensure the sale of carcass beef to be "married."
Dugdale, he said, made most of its profits from the sale of包装 primal cuts, such as short loins, top butts, tender deliows. KC strips, and inside rounds.
"One thing that you have to understand," he said, "is that the longer we keep the meat, the longer we can work with it, the more we process it, the more money we'll make on it. The money is in the processing."
The more processing done by a single company, he added, the lower the cost of the finished product. Vering said this eliminated 'middlemen' between the packers and retailers who must make a profit on the resale of the product.
Processing manager Ness Smith of Iowa Beet in Emporia said that his company made money on carcass beef, but that he had used parts of the meat of their carcass beef, he said, is loaded on refrigerator cars and shipped east for retail cutting and sales or for export. He said, however, that Iowa Beet made much money on their line of pre-packaged cuts.
Survey Shows Consumers Paying Higher Prices at Smaller Stores
Bv MIKE BICK
Kansan Staff Writer
How do the major grocery stores in Lawrence stack up against each other? A survey of nine stores conducted for the Kansas State. 26 may reveal some differ-
The results were compiled by comparing food prices of brand names picked at random. The products were compared in two ways: first, on the basis of price in each store; second, on a basis of comparison of prices between the larger stores and the smaller ones.
Meat products were surveyed October 1, all other grocery prices are those that were reported.
In comparing the prices of nonmeat products, nosubstitutions of brands was made. An "K" under a certain item does not necessarily mean that the store does not carry that food, but carries another brand.
The survey was taken in the following stores: A&P Supermarket, 1040 Massachusetts St.; Failey's, 2525 Iowa St.; Dillon's, 1740 Massachusetts St.; Rusty's Food Center, 23rd and Louisiana streets; Kroger Family Center, 23rd Street and Naismith Drive; Safety, 711 W. 23rd St. Kwik Shop, 114W. 23rd St. Seven Eleven.
822 Iowa St.; and the Jayhawk Food Market.
844 Illinois St.
In most cases, the prices were much higher at the smaller stores than at the larger ones. These stores operate on a fixed price basis and do not merchandise than the major stores so they must raise prices sometimes to stay in business, said Bob Floyd, manager of the Jayhawk Market. Since many of the small stores pay less, the consumer also pays for convenience.
Generally, the least expensive food items have the most constant prices from store to store. Variations will be only a few cents. Only slight variations were found in the price of 41 grams priced at $1.14 a gallon, 2 per cent at $1.14 a gallon. Bread was usually 34 cents or 46 cents, depending upon the size of the loaf. Eggs were 39 to 49 cents for grade A. Wheat was 39 to 49 cents for grade A large, except for Safety, which charged 65 cents for grade A large.
Prices for vegetables were slightly more variable. Canned green beans had a smaller price range than frozen or fresh. Potatoes ran from 58 to 79 cents for a five-pound bag. Tomatoes were priced from 29 to 49 cents a pound.
FRUIT JUICES varied widely between
the small and large stores. Hawaiian punch was priced at 13 to 35 cents at the larger stores. Small stores sold the same product for $0.60. Frozen orange juice, 8 oz., had a variance between large and small stores; a large store had the highest price.
Meats varied from store to store. Bone-in round steak sold for $1.49 at Safeway and broiled in the oven at Sainsbury's stores except Dillon's sold different qualities of round steak cuts at a single price, but the best cuts for boneless steaks and poorer cuts were of the bone-in variety.
Cut-up try chickens varied in price from 35 to 49 cents a pound. The cheaper chickens were not cut up as completely as the more expensive ones. Sometimes legs and thighs were joined or breasts were not split.
The prices of ground beef were varied no more than 11 cents a pound. The lowest quality of meat that was not sold under a label was used to determine the price.
Stores have meat specials periodically, which provide a good opportunity to stock on meat if freezer space is available. The quality of the meat must be considered.
Shoppers Try to Determine the Best Values They should remember that some foods simply cost more than others . . .
Kansas Staff Photo by JOE COLEMAN
Expiration Dates Valuable to Careful Shoppers
... Coded dates may stump buyers ..
Kansas Staff Photo by PRIS BRANDSTRY
ITEM A&P FALLEY'S DILLOW'S KROGER RUSTY'S SAFEWAY KWICK SHOP JAYHawk MR. SEVEN-ELEVEN
White Bread
16 oz. Manor ... 34c 34c x 34c 34c 34c 36c x x
24 oz. Wonder ... 46c 46c 49c 46c 46c 46c x x 49c
Eggs-Grade A
Large ... 53c 49c 49c 52c 50c 65c x 59c 62c
Medium ... 43c 39c 45c 38c 40c 39c x x x
Butter, 1 lb. Land O'Lakes ... 89c x x 92c 97c 89c x x x
Imperial Margarine ... 47c 49c 47c 45c 53c 47c x x x
Milk, 1 gal.
2% ... 111c 111c 111c 99c 114c 111c 111c x x
Whole ... 115c 115c 115c 115c 115c 118c 115c x 115c
JIF Peanut Butter 12 oz.. 49c 49c 49c 49c 55c 49c 57c 59c x
Miracle Whip, qt.. 49c 49c 49c 49c 49c 49c 89c x 49c
Libby's Peaches, 29 oz.. 35c 39c x 35c 29c 35c x 43c x
Lettuce, head ... 33c 39c 45c 39c 39c 33c x x x
Tomatoes, lb.. 49c 29c 49c 49c 39c 39c x x x
Fresh Green Beans ... 39c x 35c 39c 29c 39c x x x
White Grapes ... 69c 55c 59c 49c 59c x x x x
Frenches Mustard ... 20c 15c 15c 15c 23c 23c 19c x x
Folger's Coffee, 60 oz.. 129c 125c 129c 119c 129c 129c x 139c 149c
Heinz ketchup ... 27c 29c 28c 27c 29c 27c 35c x x
Hawaiian Punch ... 31c 33c 33c 33c 35c 33c x x x 50c
Libby's Green Beans ... 29c 31c 31c 29c 35c 29c x x x
Campbell's Soup, tomato ... 11c 12c 11c 11c 12c 11c 17c 21c 17c
Pillsbury Flour ... 59c 59c 59c 59c 59c 59c x x x
C&H Sugar ... 69c 65c x 69c 69c 69c 77c x 80c
American Beauty Spaghetti ... 29c 31c 31c 27c x 31c 26c x x
Quaker Oatmeal ... 36c 37c 37c 37c 37c 37c 45c x x 45c
Frozen Green Beans
Store Brand ... 25c 23c 25c 25c 28c 20c x x x
Orange Juice, 1 1/2 pt. Minute Maid ... x 29c 30c 26c 38c 25c 29c x x x
Potatoes, 5 lb.
Brown ... 69c 59c 59c 79c 79c 58c 69c x x x
Red ... 59c 55c 59c 39c 69c 48c x x x
Bananas, 1 lb ... 14c 17c 19c 25c 11c 15c x x x 25c
Coca Cola, 6 pack ... 98c 94c 91c 97c 91c x 109c 95c 109c
MEATS, 1 lb.
Round Steak, bone in ... 128c 129c 99c 149c 139c 149c x x x x
Ground Beef ... 68c 68c 69c 77c 73c 79c x x x x
Chuck Roast, T-bone ... 59c 79c 69c 89c 58c 79c x x x x
Chicken, cut-up ... 45c 49c 39c 45c 45c 35c x x x x
Ham, Butt portion ... 69c 89c 89c 75c 79c 79c x x x x