The Hutchinson News from Hutchinson, Kansas • Page 8

Hutchinson News Tuesday. Aug. 21, 1973 Page 8 Some straight answers explaining our approach to the current meat crisis Q.ls there really a beef shortage? A Yes and no. The shortage exists at the plant, who supply us our beef. There is no serious shortage of live cattle, however.

These cattle are being held on the grazing land and feed lots. It is actually a "stoppage" rather than a shortage. Q.Why A 0 aren't the cattle moving to market? Because of the disparity of current government price freeze regulations. The beef growers are not held to a ceiling price, but the packer is. Therefore, the packer is not buying.

In effect, he would be paying more for the beef than he could, in turn, sell it for. How. then, are Dillons buying beef? A We are presently buying live cattle direct from the grower. Before, we purchased dressed sides from the packer. Since we own the beef, we pay a fee to the packer for dressing and processing it.

The beef is then shipped on to our stores for further processing into retail cuts. Q. Does this cost Dillons more? A Yes. We are paying current market prices for the cattle we buy. As we've pointed out, there is no government ceiling price 6n what the grower may ask for his beef.

A this effect your retail prices? No. Remember, as a retailer, we are under a government freeze on beef. No matter what we pay for the beef, we cannot raise the retail price above our ceiling (or base) price established as of March 28, 1973. This Federal regulation is in effect until September 12, 1973. Q.

Will it be the same graded quality? A Yes, for the most part. We will continue to select USDA Choice Beef. But, due to the current beef situation and our temporary method of supply, there will be some U.S. "Good" Beef in our stores. All "Choice" Beef will carry the proper identifying label on the package.

Q. Why are Dillons doing this? A Because, as food retailers, we feel we have an obligation to our customers. That obligation is to assure product supply whenever possible. We have found a means of supplying beef to you. Q.Will there still be limits? A.

Most likely there will be. There is still tremendous consumer demand for beef. It may be necessary to limit purchases on certain popular cuts. Also during this period, we will not be able to fill home freezer beef orders. A How long can you assure beef supply? Our supply of beef between now and September 12th depends largely on the price we must pay to get it.

We are selling beef at a loss right now. If the live cattle price increases significantly, we may be forced to stop the sale of beef. discount food stores 4.