—Lancaster Farrminig, Salfcurdiay, Jaimit
20
Food Cost Increases
May Total Another
2-3 Percent in 1968
According to the 1988 outlook
issue of USDA’s The Marketing
and Transportation Situation,
“An increase of two to three
percent in the retail cost of the
market basket of farm-originat
ed foods is in prospect for 1968
Much of the increase, will come
from higher prices for meats,
chickens, eggs, and fruits. Re
turns to farmers from the prod
ucts in the market basket are
expected to be slightly higher
in 1968 than in 1967.
“The spread between the re
tail cos ard farm value of the
market ba.ket foods probably
will average two to three per
cent wider in 1968 than in 1967.
Spreads are likely to increase
fo • most products in the mar
ket basket
“Costs of performing market
ing services probably will go up
again next year due to rising
prices of major inputs. Houriy
earnings of market firm em
ployees are likely to rise more
than output per man-hour,
causing an increase in labor
costs per unit of product. Other
operating costs are expected to
rise.
“Farmers probably will re
ceive 38 cents of the dollar that
consumers spend for the foods
in the market basket in 1968 —
the same share as in 1967.”
In 1967, the report points out,
“the bill for marketing domes
tic farm-originated foods bought
by U.S. civilian consumers in
creased five percent from the
previous year, according to pre
liminary estimates. For the sec
ond consecutive year, the in
crease was significantly larger
than the average yearly gain in
the past 10 years. The market
ing bill this year is estimated
at $5B billion—up $2.7 billion
from 1966. Rising unit market
ing charges and expansion in
\olume of products marketed
accounted for the rise Receipts
by farmers for these food prod
ucts probably will total about
$37 5 billion this year—two per
cent less than in 1966 Consum
er expenditures for these prod
ucts are expected to total $85.5
billion —three percent higher
than 1966.”
In discussing the various fac
tors involved in marketing
•osts, the report makes these
points about labor costs:
“Employees in food marfcet-
Agricuiturat College
Enrollment Increases
This year’s enrollment in the
■aition’s agricultural colleges is
•even percent greater than in
1006, according 'to Dr. William
E. McDaniel, dean of the Col
lege of Agricultural! Sciences at
the University of Delaware
At the national level, McDan
iel said that 1967 fall tern ei
rollment for baccalaurea 1 ' a de
gree programs in agncuujare is
47,723, an increase of 3,127 over
the 44,596 students enrolled in
1966 Greatest increases in en
rollment came in junior and
senior classes, indicating that a
large number of students trans
ierred to agricultural colleges
irom other colleges and univer
sities
Graduate students enrolled in
agricultural courses increased
about 10 percent nationally Mc-
Daniel said that the total agri
cultural enrollment in graduate
school was 16,154 compared to
14,687 in 1966 Fields of gradu
ate study showing the largest
increases were animal science,
agricultural economics and ag
ricultural education
Enrollment figures are for the
68 member institutions of the
National Association of State
Universities and Land Grant
13,1968
ing establishments earned an
average of $2.50 per hour in Au
gust this year five percent
more than a year earlier. This
rise exceeds the average annu
al increase of four percent dur
ing 1957-66.
“Increases in average hourly
earnings of food marketing em
ployees were comparable to
those in other lines of manu
facturing and trade. Hourly
earnings in food manufacturing
establishments averaged $2 61
in August this year, about five
percent higher than a year ear
lier. In all manufacturing es
tablishments, the average was
$2.82 up four percent from
August 1966. In the wholesale
food trade, employees averaged
$2.67 per hour in August—six
percent more than a year earli
er. This compares with an hour
ly average of $2 88 in all whole
sale trades—five percent higher
than in August last year. Earn
ings of employees dn retail food
stores averaged $2 22 —four per
cent more than in August 1966.
Employees in all retail estab
lishments earned an hourly av
erage of $2 01 in August—six
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percent higher than a year ear
lier.”
“Hourly costs of the labor en
gaged in marketing food prod
ucts (includes fringe benefits
as well as payrolls) averaged
39% higher in 1966 than in
1957-59. But a substantial im
provement in output of prod
ucts marketed per man-hour
held the increase m labor cost
per unit of product marketed
to 14%.”
Profits: “Profits after taxes
for corporations manufacturing
food and kindred products (not.
including alcoholic beverages)
averaged 2.2% of sales in the
first half of 1967, compared
with 2.5% a year earlier, ac
cording to a joint report of the
Federal Trade Commission and
the Securities and Exchange
Commission. After tax profits
average about 99% of stock
holders’ equity in the first half
of 1967—compared with 11.0%
a year earlier.
“Profits, as a percentage of
sales, of 16 leading food chains
averaged 1.0% jn the first half
of 1967, compared with 13% a
year earlier. In 1966, profits for
these food chains had averaged
12% of sales—the same as in
1965 They had averaged 1.2 to
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