Carrol Daily Times Herald from Carroll, Iowa on July 3, 1974 · Page 10
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Carrol Daily Times Herald from Carroll, Iowa · Page 10

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Carroll, Iowa
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Wednesday, July 3, 1974
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Page 10
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Middleman Getting More of Food Dollar But Costs Cut His Profit n_. I f\.W TWr^V^ *^S*.f^mv . . _ By LOUISE COOK Associated Press Writer The middleman in the chain that brings beef from the ranch to the shopping cart is getting more of your dollar than ever before. But he says his profit is being gnawed away by everything from higher labor costs to more expensive meat saws. Industry spokesmen say wages and fringe benefits are 10 to 15 per cent higher than last year; the light bill is anywhere from 10 to 60 per cent higher; paper bags and other packaging are up 25 per cent or more; and those meat saws are almost 16 per cent Hwy. 30 East, CARROLL, 792-3515 COMPLETE AUTOMOTIVE SERVICE CENTER •J i 2ND TIRE WHEN YOU BUY 1ST AT REG. PRICE PLUS F.E.T. EACH AND TRADE-IN TIRES! IND TIRE LOW AS PASSING!« CAI Till OUAR ANTII Montgomery Word guoranf««i •ach of iH pem*na*r car tirti for a tptc- ificrf number of mit«i whin u»«d on • xc«pt I anil, tf your tir« doei not give yov thii miltog* btcoui* of: • d«f*cti In material or worfcmanihip, • normal road haiord failure, • premature tread wearout (7/32 inchet or leu remaining); Montgomery Ward will: 1. During the firil 1 0% of gi-orantecd mileage, replace the tire free. 2. During the remaining guaranteed ! mileage, replace it for a prorata charge bated on mileage uied. Nail punclurei repaired free during the entire guaranteed mileage. For guarantee tervice *nd od|uil* menti, return tire to any Montgomery Word branch with the Guarantee Booklet inued at the time of tale. Charge after firtl 10% of guaranteed mileage bated on telling pi ice- in effect at the lime of return at branch to which returned, including federal excite to*. Pattenger tiret uied on toiicabt, and motor vehicl*i other than pcmengrr cart are guaranteed on the tame botii againit defect! in material* and workmanthip only. 2 FIBER GLASS BELTS HELP PROVIDE TIRE WITH LONG MILEAGE. 2 BODY PLIES OF POLYESTER CORD FOR STRENGTH AND SMOOTH RIDE. A78-13 TUBELESS BLACKWALL PLUS 1.80 FEDERAL EXCISE TAX EACH AND TRADE-IN TIRES FAST FREE MOUNTING! IUBIIESS SIACKWAU SIZE A7B 13 C78 1 E78 1 F78 1 G78 1 H78 1 G78 15 H78 15 178 15 178 15 REPLACES SIZE A 00 695 7 35 7 75 8 J5 8 55 8 25 5 8 55 15 WH 8 85 15 1 15 15 REGULAR PRICE EACH 4 J31 J35 $37 $39 $'2 $44 S43 $46 ITEWAUS ONLY $53 $56 SALE PRICE 7NDTIRE' 9.10 10.50 1 1.10 11.60 11.41 19.36 11.91 10.24 13.31 14.64 PIUS F.I.T. EACH 1 80 2 17 2 33 2 50 2 67 292 2 74 297 3 13 3 19 WK. ,,._,, II, voiloblr $2 $3 14,000 MILE GUARANTEE 78-SERIES, 4-PLY NYLON CORD AIR CUSHION TIRE 42,000 MILE GUARANTEE STEEL-TRACK BELTED GRAPPLER RADIAL REG. LOW PRICE A78-13 TUBELESS BLK. PLUS 1.78 F.E.T. EACH AND TRADE- IN TIRE REG. LOW PRICE BR78-13 TUBELESS WHT. PLUS 2.11 F.E.T. EACH AND TRADE-IN TIRE TU1EIESS BLACKWALL SIZE A78-I3 B78-I3 £78-14 f78 14 G78 14 5 40- 15 G78.15 H78.15 REGULAR LOW PRICE* 10.»5 11.95 17.»i 1I.VS I».»J 1S.95 19.9J 11.95 PIUS F.E.T. EACH 1 78 1 83 J 24 241 255 1.78 363 . 382 *Wilh trade in *Wiih trodf .n lite Whitewollt available $3 mote each. TUNE-UP SPECIAL A WELL TUNED ENGINE SAVES GAS! WARDS EXPERT, TRAINED MECHANICS WILL: • Install AC® spark plugs • Install new rotor • Install new points • Check, set dwell • Install new condenser • Check, set carburetor • Time engine to assure like new, peak performance • *Air conditioned cars *2 more—for most US cars and light trucks. Does not include high-performance or special engines *4-CYL. 15 88 *8-CYL. 19 88 World's most popular spark plugs now at Wards popular prices REG. 69< FIRE RING SPARK PLUGS FIRE HOT AND CLEAN WITH AC® Reliable quality and engineering innovations keep AC spark plugs power matched to the require- mentsof millions of vehicles. Get quick starts always. 991 AC® resistor plugs, 79* 3*: AIR FILTER Filtering Media Captures 99% of Dust Regular $2.79 more expensive than they were last year. Elias Paul is president of John Morrell Co., one of the nation's largest packing houses. He buys the steer at the feedlot, slaughters it and sells it to the supermarket which sells it to you. The latest Agriculture Department marketbasket showed the price of farm-produced food increased three-tenths of 1 per cent in May. That meant that on an annual basis, it cost $1,733 to feed a hypothetical family of 3.2 persons — up $5 from April. The government said that if middlemen had passed along the savings resulting from lower prices paid to farmers, the consumer would have saved $34 on an annual basis. Morrell, a part of United Brands, had 1973 sales of $1.25 billion. Profits, said Paul, were "less than 1 per cent ... The company has never made as much as a cent per pound.'' The packer got 7.4 cents of the dollar you spent for beef this April, compared to 6.2 cents a year ago. The industry claims the money is going for increased costs. Paul said he could not provide specific expense figures for the beginning of 1974 corn- Times Herald, Carroll, la. Wednesday, July 3, 1974 10 pared to previous years. He said that 75 cents out of every dollar that Morrell spends to produce the meat for shipment to supermarkets goes for the meat itself. Half of the rest, he said, goes for labor, adding that wages and fringe benefits for some employes have risen $1 an hour in the past year. The average industry wage is $8.29, compared to $7.41 last year. Paul said earnings for the beginning of 1974 are below last year, but he declined to give the figures. The animal that Morrell slaughters is sold to supermarkets like Pantry Pride-Food Fair, the nation's fourth-largest chain in terms of sales. Supermarkets are getting 30.6 cents of your beef dollar, compared to 26.7 cents last year. Clarence Adamy, head of the National Association of Food Chains, recently urged all retail stores to feature beef, to offer more specials, to move the meat to the consumer, creating a greater demand, getting rid of the oversupply and pushing up wholesale prices. The supermarkets say they already have been bringing down the price of meat, even if the consumer doesn't think so. They argue that government figures don't take into account the time lag between a drop at the wholesale level and a decline at the supermarket counter. "We have made sure that consumers do get the benefit of lower wholesale prices by lowering our retail meat prices," said Harold Friedland, vice president of Pantry Pride-Food Fair. Pantry Pride had a net profit of just over $2 million last year, about one-tenth of one per cent. One reason for the below-average figures was the closing of unprofitable stores and the loss of $4 million in assets. This year, the chain expects sales of $2.3 billion and increased profits. John Kovaleski is the manager of a Pantry Pride supermarket in Newark, N.J. He presides over a $6 to $7 million business a year, but says he has virtually no autonomy. Kovaleski does not have the power to set the price on any item — unless it is perishable and will not last the night. The shipments he gets are billed at retail prices. He's told what his gross profit is, but doesn't know the net figures. Those figures all are kept at company headquarters in Israel Tries Growing Crops on Sand Dunes HAIFA, Israel (AP) — Israeli research engineers have developed a sort of underground highway that permits farmers to grow rich crops on sand dunes and useless ground, the Israel Institute of Technology reports. The key to the process is a tractor-drawn scoop that lifts the sand a few inches and sprays a cold asphalt liquid into the ground. The sand falls back into place and the asphalt hardens into a membrane that traps irrigation water, preventing it from seeping away. The tractor lays down the asphalt in strips eight feet wide, like a road, and can quickly put a waterproof floor under acres of sand. Project director Dr. Gedalyahu Manor, announcing the development, called it "a sub-surface asphalt moisture barrier." He said it allowed high profit fruit and vegetables to grow on land where irrigation water would normally flow away as waste. "Without a moisture barrier, farming is possible but is extremely wasteful in terms of water and fertilizer," and a statement from the institute. Water quickly percolates down through the sand and sinks below the reach of a plant's roots, it said. Prof. Haim Finkel, dean of the institute's agricultural engineering faculty, said the method could be used in arid zones such as the west coast of South America, the Persian Gulf and the North African Sahara. Engineers tested the process near the ancient Roman city of Caesarea and other parts of Israel, said the institute, and yields were high. Potatoes grown on sand dunes produced 2.9 tons per dunam — a quarter acre — compared with 1.5 tons on an adjoining patch of sand without the asphalt membrane. Similar results were achieved with tomatoes. Philadelphia and chain spokesmen do not give out dollars and cents estimates. They do say, however, that labor costs went up 18.4 per cent over the past year; light and power 38.6 per cent; paper bags 31.5 per cent; interest rates 55 per cent; and laundry costs 40 per cent. Kovaleski gets a profit quota for each department, telling him how much money he should make overall. It runs about 17 per cent for meat. He says he doesn't know how much money is left after operating costs and other expenses come out of that 17 percent. A.D. Davis, chairman of the board of Winn-Dixie Stores, a chain based in Jacksonville, Fla., reels off figures to show that meat prices have declined sharply since the start of the year. Sirloin steak, $1.49 a pound at a Winn-Dixie in Atlanta, Ga., compared to $1.99 in January; chuck roast, 69 cents compared to 89 cents in January; ground beef, 69 cents compared to $1.09 in January. If costs are down, why aren't people buying? "The consumer got ripped off last year," said Davis, adding that boycotts, freezes, shortages, withholding actions contributed to customer confusion. "Now we have to win them back." Distant Family Visit in Auburn AUBURN - Mr. and Mrs. Larry Bates and sons of Alpha, Minn., were Sunday dinner guests of Mr. and Mrs. Harold Zimmerle and daughter. Mr. and Mrs. Walter Oestreich in company with Mr. and Mrs. Joseph Drees of Cape Girardeau, Mo., visited Walter Oestreich of Huxley at Mary Greeley hospital at Ames Sunday. Mr. and Mrs. Don Friese and Diane of Rippey visited Sunday evening with Mrs. Zielah Spafford. peanuts and eggplant, said the institute, which began work on the process five years ago. Engineers said the membrane would last for seven years and the profit from crops would pay for the investment within three years. r4* of .JULY WBRIC FESTIVAL! /A^-rrji. Just Arrived DOUBLE KNITS Sale Prices Good thru Tuesday, July 9 HOURS: 9 to 5 Man. to Sat. 9 to 9 Friday BUY WHATEVER YOU NEED FOR YOUR CAR WITH WARDS CHARC-ALL Non-Roll Yds. ELASTIC $100 1 Many SUMMER FABRICS Polyester and cotton. 45" wide. Wash-n-wear. \\ Designer Lengths 100% Polyester 60" Wide Machine Wash-N-Dry Values to $4.99 If On Bolts Simplicity 06352 69 Yd. One Table CREPE PRINTS 100% cotton or 100% polyester New F\ PRINTED W FLANNELS Attractive patterns, pastel colors, 45" wide. $139 1 Yd. Special Purchase Plastic Handle SCISSORS $3.99 Value $174 1

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