Zurich Citizens News, 1974-09-05, Page 4PAGE 4
ZURICH CITIZENS NEWS
THURSDAY, SEPTEMBER 5, 1974
There is not likely to be
much if any, relief from fast
rising food prices over the
next six months.
Except for beef prices,
which are expected to decline
by the end of the year, the
consumer can expect to pay
more for most food items dur-
ing the next six months or even
a year.
The Food Prices Review
Boards said in July that it
"sees reason for some optimism
in respect to the overall food
prices picture." The Board
based its conclusions on the
belief that "forces of supply
and demand now appear to be
working their wayinto a better
state of balance which is
decreasing the rate of price
increases."
However, although food
prices are unlikely to keep
moving up at the speed seen
in the last two years (37%
from June 1972 to June 1974)
some further large increases
are clearly on the way.
Rising costs of ingredients,
packaging, transportation and
labour will provide some of the
push in keeping food prices
high.
The area where the biggest
price leaps can be expected
is in canned goods.
The food processing industry
has predicted retail price in-
creases of 30% to 40'/o for can-
ned and frozen vegetables by
this autumn.
These big increases in can-
ned vegetable prices is coming
almost a year later than most
food price increases because
last spring when the 1973 prices
were being negotiated, the
prices were set before it be-
came evident how sharply
other prices in the economy
would rise. The growers settl-
ed last year for increases of
about 5%. This year, the
growers feel that they have to
catch up for underpayment for
their crops in 1973 and to keep
pace with prospective inflat-
ion this year,
In Ontario, the largest veg-
etable producing province, the
price of peas delivered to the
processing plant will be up 65%
to $300 a ton, corn -on -the -
cob will be up 75c o to $55.75,
tomatoes will be up 44% to $74
a ton, and cucumbers will be
up 80% to 140T/o over 1973 prices,
The prices of other vegetable
crops such as beets, carrots,
cabbage, pumpkins, beans and
Jottings
J ck
fro
Queues Park
asparagus will rise proportion-
ately.
For the consumer, this will
probably mean that a 14 -ounce
tin of fancy grade peas will
likely increase to 35¢ this fall
from 29¢. A 14 ounce tin of
choice grade corn, now 27¢
will sell for about 34¢. Prices
on most canned vegetables
will increase by 6¢ to 10¢ a
tin.
Canned fruit prices will also
increase because tin cans,
sugar, fuel and labour cost
more. The cost of cans is up
11% over last year, cardboard
cartons 6%, fuel an estimated
GO% and printed waxed card-
board boxes for frozen veget-
ables are up 32% in addition
to labour cost increases.
The growers also demanded
higher prices for their crops
because they say they can eas-
ily switch into alternative
crops which are more attract-
ively priced. Tomatoes, for
example, are a highly profit-
able crop but they are also
risky and troublesome. So
when corn can be sold for $3
a bushel and soybeans for $5
to $6 (the present prices),
growers will not grow tomat-
oes or any other vegetable
crop unless they are offered a
good price. Most farmers in
the vegetable -growing areas
are not highly specialized, let
alone wedded to a single crop.
They tend to switch'readily
into the crops that offer the
highest return.
Price increases in milk and
milk products are expected to
be large also. Farmers are
seeking price increases both
for industrial (butter, cheese,
milk powder) and fluid milk,
which they must have in order
to increase their ever rising
cost of production.
If the consumer had to pay
directly for the requested in-
crease, butter could go up 18¢
per pound (it is now around 90¢
per pound depending ons;he
type) and a pound of po dered
skim milk by about 8¢ fom 79¢
Sugar -based products *ill
also continue to rise in price
because no letdown of sugar
prices seems in sight. Retail
price in the Toronto area of a
10 pound bag of white sugar was
$1.43 - $1.49 last fall. It rose
to $3.35 - $3.49 by late winter
and has stayed there ever since.
The price increase is a result
of demand exceeding supply
the last three years and of cons
ZURIC Citizens NEWS
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equent specualtion in sugar
futures. Sugar prices will likely
stay high primarily because
Brazil's crop was damaged by
heavy rains and most of Cu 's
crops is expected to go to th
Soviet Union. Fruit canners,
bakers, confectioners and soft
drink manufacturers are all
hard hit by the high price of
sugar.
Canadian egg and turkey
prices --said to be the highest in
the world and about one third
higher than in the U.S,--will
probably remain at this peak.
Bread will move slightly
upward because of rising ancil-
lary costs in flour production
and plastic bread bags. Baking
flour bought in the supermark-
et by the consumer will probabl;
increase about 5% because of
the rising costs of flour millers.
Cake mixes will likely inc-
rease by 10'/o - 12% primarily
due to sugar prices but also
because of increased labour,
packaging and shortening costs.
For the past year, beef has
been the focal point of consum-
er discontent over escalating
food prices. Beef prices now
seem to be on a downward
path, however, this inay not
be very long-lasting. In Tor-
onto, beef prices per hundred
weight have been as low as
$45. as compared with a peak
of $62 last summer. By late
fall, prices could be in the
mid $40's or maybe lower.
This decline in price from
about 07060 to $45 means an
average saving at the retail
level of around 15¢ to 30¢ per
pound, depending on the cut.
Fish prices are expected to
remain fairly stable (except
for lobster and shrimp). The
most substantial decrease bas
been for fresh and frozen ocean
perch.
Indications are that pork
prices may be headed for large
increases. The glut of hogs on
the market appears to be finish-
ed.
The constant spiral in food
prices has prompted some buyer
substitution, especially among
low-income families and those
on fixed incomes but substitut-
ion is not as much help as it
used to be. It used to be poss-
ible to substitute poultry for
beef and hamburger for steak
but now these substitutes have
gone up too.
Although this article tnay not
strike the most optimistic note
from a consumer's standpoint
particularly those on low and
fixed income, it is only on the
basis of an appreciation of the
situation that together we can
begin to work reasonable sol-
utions.
If you have any ideas about
this matter of inflationary
prices and how the situation
might be rectified would you
kindly send me your comments
either to my home or my off-
ice in Toronto.
TED V.' , GEL
AND SO S
BUIL{ ANG
CONTRACT'SR
FRAMING
H; asses & C►t$,Ilges
*fie fov;r;floras
CUSTOM BUILT
Hees
Free Estimates!
DASHW OOD
R,R,1 PH, 238-2742
Traffic safety
Last year in Ontario 194
children were killed and 12, 000
injured in traffic accidents...
95 of the children were ped-
estrians, 36 were riding bicycle:
and others were in motor veh-
icles.
In announcing these figures,
Minister of Transportation and
Communications John R.
Rhodes reminded all motorists
that the opening of a new
school year presentes particular
hazards.
"The first days back at
school are an exciting time for
youngsters, " Mr. Rhodes
warned. "They often become
forgetful about the traffic
safety rules. Thus, all motor-
ists must be constantly alert
when driving in school areas.
They must take extra caution
where they are parked cars,
school crossing zones or play-
ground areas.
"In rural districts, adult
'drivers must be very cautious
when they see a yellow school
bus. If the bus is stopped with
red signal lights flashing it
means children are getting
on or off the bus. The onus is
on all drivers to see that child-
ren cross the road safely."
Parents must help too, Mr.
Rhodes added. "Check the
route your children have to
follow to get to school and
discuss any particular hazards
with them. And find out what
they are learning about traffic
safety at school so you can
reinforce these messages at
home.
Banghart, eily, oig aid
Chartered Accountants
268 Main St., Exeter
ARTHUR W. READ
Resident Partner
Bus. 235-0120, Res. 238-8075
tress an
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Tuesday, T mursday, Friday, Sat-
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10 Issac Street 4e2.7010
Monday and Wednesday
Call either office for
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Norm '_I' r M . rtrn
QPY s;;:,:•;ETRIST
Office Hours:
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Closed all day Saturday
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