OCR Text |
Show Industry Executive Sees Leveling Off of Food Cost The rise in food prices in the first months of 1973, according to Lawrence Law-rence V. Alder, Executive Execut-ive Director of the Utah Retail Grocers Association. Associa-tion. Mr. Alder predicted that the expected 4 increase in-crease in food prices for 1972 (over 1971) will be reduced to about half that rate, based on projections project-ions by the U.S. Department Depart-ment of Agriculture, as increased production rises to meet demand. He pointed out that total food consumption in 1972 is expected to set a new record as it did in 1971. Increased consumer consum-er demand for meat products pro-ducts has contributed to the increase in these prices, but larger supplies sup-plies now reaching the market should help ease this price situation. Increased In-creased use of poultry, fish and dairy products is also helping the meat price situation. The food industry official of-ficial pointed out that while the per capita con- sumption of food declined almost 100 pounts since 1940, the per capita consumption con-sumption of meat has continued to climb, reflecting re-flecting the growing affluence af-fluence of this country. It has increased from 166.4 pounds in 1940 to 221.5 pounds today, while production has not been able to keep pace. Mr. Alder said that the food industry, generally, has done a remarkable job in holding the lid on prices, and cited these figures to substantiate this statement: Since 1961, the price of food has increased 29, while the price of other goods and services has in many instances been two or three times as great. As examples, the cost of home maintenance main-tenance and repair services serv-ices has increased in this period by 73, auto repair services 45, public transportation 63, and hospital room charges 163. But even more important, import-ant, he added, is the fact that food today takes less of the family budget than it has at any time in our history. In the U.S. the figure now is 15.6 of the family budget, down 5 in the last ten years. This compares with 24.8 per cent for England, 37.0 for Japan, and 60.7 per cent for countries such as Ghana. "Let me make one more comparison," Mr. Alder said. "One hour's work in a factory buys 11.7 quarts of milk. In 1950 it bought 7.5 quarts. One hour's work in a factory buys 2.6 pounds of round steak, today. In 1950 it bought 1.5 pounds. The same situation prevails pre-vails with other food products." He remarked that food supply is affected by many things, including weather and strikes which the retailer can do nothing about. But the U. S. food distribution system sys-tem has proved itself to be the best and most economical in the world. |