Lethbridge Herald, The (Newspaper) - March 20, 1973, Lethbridge, Alberta
THE UTHBRIDGE HERALD Tuesday, March 1973 Still waters ERV1N pHlto This irrigation canal near the Lelhbrictge Research Station has accumulated some water from the sparse snowfall in the lethbridge district this winter crlmost os a primer far the thousands of gallons which will be passing through the ditch when the flood gates al the St. Mary dam are opened this spring. This dilch serves the needs of the irrigation projects at the research station. PROGRAM DIRECTOR Junior Achievement seeks the servrcps of o com m unity- minded individual lo super- vise the Junior Achievement program on a part lime basis. For further information write: The President, Junior Achievement, Lethbridga P.O. Box 880 Ulhbridge, Alberta Council committee formed to study city hall space A three-member city council committee will study city halt expansion alternatives. The committee of Aid. Bill Kergan, Aid. Steve Kotch and Aid. Vera Ferguson was estab- lished by councii Monday to look at short or long-term rental ar- rangements, extension of the existing city hall or building a new city halt to meet the re- quirements of a city adminis- tration that has outgrown the present building, erected in 1947. In a brief discussion before the committee was set up, Dep- uty Mayor Cam Barnes said city hall should be under one roof because it should be a fo- cal point for the entire city. Aid. Vaughan Kembroff on the other hand said the city had no right or need to build a big city hall if it could fulfill the same needs in another way at less cost to tiie laxpayer. ATTENTION FARMERS AND RANCHERS We Now Have In Stock! mm UTILITY GRADE FIR Dressed dimension-random lengths lin. ft, lin. ft. lin. ft. NO. 1 ROUGH SPRUCE All 16 ft. lengJh, 2x6 Lin. Ft............. LUMBER CO. LTD. ''Your Pioneer Lumber Dealer Since 1925" Cor. 2nd Ave. and 13 St. S. Lcthbrldge Phone 328-3301 Egg prices have been up and down from to week like a yo-yo. About the only constant thing in the whole c duplicated egg industry is that Alberta p reducers receive more for their produc t than their counterparts in other proviiic es. BY IUC SWIH ART Herald Staff Writer Alberta egg producers, U reg- istered the provincial egg and fowl marketing board, re- ceive more for their product than any other producer in Can- ada. And the price paid to produc- ers as set by the provincial marketing board, last week increased three cents a dozen for grade A large to claim the record price, is about the only thing which is certain in the constantly changing picture of the egg industry. Fluctuations in the supply and demand for eggs within the grade classification are reflect- ed in the price retailers charge the consumer. The only justifi- cation for a price increase the producer can use is an increase in produclion costs, said Dick Clemis of Purple Springs, a member of the marketing board. Profit margin In today's egg industry, there are six individual segments the straight producer who also grades his own product (produ- an egg grader and wholesaler combination (grad- a wholesaler, a retailer and the consumer. Various officials in the dif- ferent segments of the indus- try claim they work on a profit margin necessary for the viable operation of that segment. This means the price the consumer pays should reflect back enough for all the segments to operate efficiently. In the case of the producer, that profit margin is looked al- ter by the marketing board. To look after the consumer's interest, a member of the pro- (vincial consumers' association sits on the board. Since the inception of the marketing board, the battle to maintain the supply in the prov- ince at a level near the demand has been a high priority. In this situation, preventing an excess supply helps to maintain the price the producer receives. Next step The next step was to intro- duce a surplus purchase pro- gram. Through the program, the marketing board buys the surplus production from the producer and then tries to move the extra eggs into a sale posi- tion. A total of was spent on this program in 1972. The next step will be the offi- cial implementation of the na- tional egg marketing legislation Thursday. Through this program, each province try to produce only enough eggs for its own needs. Through the efforts of the marketing board, the producer By RICHARD BURKE Herald Staff Writer Wherever you bought your eggs last week, you can be sure the price was not the same at every other store in the city. The Herald conducted a sur- vey of 17 egg outlets in (he city and found a price variation for one dozen eggs of 5H cents the range was between 24 cents a dozen for poulets to 80 cents a dozen for grade A largo. The highest price found for eggs was at the 7-Eleven store at 541 13th St. N. on Wednesday. You would have paid 80 cents a dozen for large and 77 cents a dozen for medium there. Small were not offered. The same day, Safeways in the Westminster Plaza sold or poulets for 59 cents per package about 24 cents a dozen. The other three egg sizes of- fered at that store, at the three other city Safeway stores and at the three L-Mart stores sold for 53, 66 and 70 cents a dozen. The two other 7-Eleven Stores at 2006 Mayor Magrath Drive and 491 Mayor Magrath 'Drive, Thursday had prices ol 75 cents and 77 cents a dozen for medium and large eggs. IGA, in the Centre Village Mall, was selling eggs for 49, 55 and 63 cents a dozen, small medium and large. Mihalik's Mayfair Foods, at !Hth St. N., also sold small and medium eggs for 49 and 55 cents a dozen hut had a 69 cenls price stamped on the large egg cartons. Curries Foods Ltd. 1516 9th Ave. S. had small eggs for 47 cents a dozen and large eggs at two dozen for J and L Grocery in the Col- lege Mall offered only medium sized eggs for 60 cents a dozen wliile EHa's Grocery, 1016 9th Ave. S., sold small eggs for 3D cents and large for 73 cents a dozen. Krol's Grocery at 732 23rd St. N. sold small eggs at 53 cents, medium for 75 cents and large at 79 cenls a dozen. Each week, Hutterites bring 45 dozen eggs to The Herald building and sell them at 46 cents per dozen in cartons. now knows what he will get for his eggs. The scale includes, [or Lcthbridge deliveries of un- graded eggs, grade A extra large 54 cents a dozen; grade A large, 53; grade A medium, 50; grade A small 33. Grade A pee wee eggs bring the pro- ducer 10 cents a dozen un- graded. In the event a producer grades his own eggs, he can work with two prices the producers' and the wholesalers'. Once the eggs are graded they can be sold to institutions and restaurants directly from the producer. Eggs sold directly from a producer to a consumer don't have to be graded. Sells to himself The price charged for the eggs can be determined by the producer grader, mostly de- pending on his cost of produc- tion and the profit margin he wants to maintain. He, in effect, sells his eggs to himself. In the case of the egg grader- wholesaler, Hie price paid to the producer is the minimum price set by the marketing board. This means the producer-grader can undersell the grader-whole- saler. The straight grader whole- saler .can't sell the eggs cheap- er to compete with the pro- ducer-grader. Since it costs the straight grader-wholesaler up to 10 cents a dozen to grade, clean and package, the minimum he sells grade A large eggs for is about 63 cents 53 to the producer and 10 cenls for the operation of his plant. Because of the price advant- age realized by the producer- grader, some retailers have been paying only 48 cents a dozen for eggs. This is less than Ihe straight grader-wholesaler has to pay the producer by law. Sales decreased lieg Chisholm ol Southalta Produce Co. Ltd., the only egg grading station in Lethbridge, said sales by his plant have de- creased sines the price increase last Monday. He said he has worked on the same profit margin for 20 years while all the time his produc- tion costs have increased. He has decreased his staff to three from 31 in that period because he can't work his profit margin on a percentage of the price fluctuations as the other seg- ments if the industry do. Mr, Chisholm said he faces a more difficult time in South- ern Alberta because of the great number of producer-grad- ers. With the access of cheaper eggs from the producer-grader, many clients have stopped us- inp: the straight grader-whole- saler. In addition, while the grader has to purchase a city licence to sell eggs in the city, pro- ducer-graders can sell produce off their own farm with no H- Lilydale Poultry Sales In Lethbridge, formerly the larg- est handler of eggs in the prov- ince prior to Canada Safeway setting up a grading-wholesal- ing station in Edmonton, still ships eggs. The company buys eggs from 'Southalta Produce and keeps only a three-cent per dozen handling charge. In this Instance, Liiydale acts as the wholesaler. With access to eggs al var- ious prices, the different retail sales outlets are able to fluctu- ate Ihe 5 price of eggs. Some stores buy -directly from the producer and can effect greater sayings than the retail outlet using the services of a .grader- wholesaler. Background Tlie consumer fits into the picture because of habits'. If he buys only grade A large eggs, there is soon, a surplus of other grades on the market. To get rid of that sur- plus, the wholesaler has to offer other grades to the retailer at a lower price. Also, the continual demand for one grade v-il! tend to drive Ihe price for that grade up. The consumer could start to complain about Ihe rising price he is paying for eggs but a look at the background could calm some of the critics. From Dec. 1, 1972, to March 1, 1973, the ccst of producing a dozen eggs increased 9.7 cents, according to Mr. Clemis. In that same time, the pro- ducers received an Increase of only five cents a dozen. Tliis negative balance Is caused by skyrocketing feed costs and increasing handling and equipment costs, said Mr. Clemis. Mr. Clemis, a producer-grad- er, himself, says increased costs in relation to the grading of eggs also adds to over all in- crease of produclion costs to the producer-grader. Hampered The egg grader is hampered due to Ihe narrow price scope he lias lo work with and the in- creasing competition from pro- ducer graders. Mr. Chisholm claims the pressure is so great he would like to get out of the business. The straight wholesaler like Liiydale rides the crest of price fluctuations attributed to the grader-wholesaler. As the price ot eggs change for Soulhalta, due lo supply or to processing costs, the price charged by Lily- dale increases or decreases ac- cordingly. The retailer appears to be in the safest position since he can simply shift the change in price directly to the consumer. Soon there be thousands ol students looking for summer work. Sludenl workers can be an asset lo any sized business. Student workers are willing and eager. They learn quickly and have useful training tc olfer. In addition to nearly 400 Canada Manpower Centres across the country, we've set up 200 special Centres for Studenls. We can match Ihe right sludeni to the job you have to gel done. Call your Canada Manpower Centre. Many businesses have already discovered that student workers can be a valuable asset. Maybe you've been missing out on a good thing. Hire a student this summer- it's good business.