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ARM A N D Q anch F I ULLETIN May 1968 Vol. 23, No. 5 BREAD — MORE T H A N JUST W H E A T The retail price of bread in the United States has risen every year except one since 1945, according to the U.S. Department of Agricul ture. The retail price paid by a housewife for a 1-pound loaf of white bread in 1967 was typ ically 22.3 cents — almost two-thirds more than the 13.5 cents average price during 194749. The rising costs of marketing services — which account for the major part of the retail price of a loaf of bread — have accounted for virtually all of the gain. Although the retail price of bread mounted sharply, the farm value of the wheat and other ingredients used in bread showed little change. Two decades ago, the farm value of all ingredi ents going into a 1-pound loaf of bread was 3.3 cents; during the first 9 months of 1967, this farm value averaged only 3.5 cents. The value of wheat — which accounted for around fourfifths of the value of all farm-produced ingredi ents— was 2.8 cents per 1-pound loaf. As a result of the differential growth rates of the farm value of ingredients and nonfarm market ing charges, the farm value of the ingredients used in a loaf of bread in 1967 was less than 16 percent of the total retail cost of the bread, compared with a share of a little more than 24 percent in the 1940’s. The USDA points out that the trip which wheat takes when it leaves the farm gate until it becomes bread on the baker’s shelf involves a series of handling and processing steps, each of which increases the cost of the final product. Most of these steps cost more to perform today. The cost of such items as transportation, stor F E D E R A L R E S E R V E DALLAS, age, handling of ingredients, and processing in gredients other than flour, together with the cost of nonfarm-produced ingredients, totaled 1.6 cents in 1967, up from 1.1 cents in 194749. The miller received about 0.6 cent of the retail price of bread for turning the wheat into flour, little different from 20 years ago. The largest proportion of the cost of bread is incurred at the bakery and through subsequent outlays for transporting the product to the re tail outlet. Between the time that the flour and other raw ingredients have been received by the baker and a finished loaf of bread is ready to be sent to the retail outlet, the raw materials have been stored, processed for baking, and baked. The resulting bread has been sliced, wrapped, and delivered. For performing these functions, the baker-wholesalers received 12.0 cents, or almost 54 percent of the retail price of a loaf of bread in 1967, compared with 6.3 cents, or nearly 47 percent, during the 1947-49 period. When the cost of ingredients is excluded, the largest part of the baker’s expenses consists of wages and salaries. These outlays, at 6.2 cents per loaf, accounted for slightly more than onehalf of the baker’s total margin, although mech anization has been used increasingly to offset rising labor costs. Delivery and selling functions continue to be a costly part of providing bread to the ultimate consumer despite recent improvements in the volume of bread delivered per route. Salaries and commissions of the driver-salesmen on the bread routes account for about as much of the B A N K TEXAS OF D A L L A S FARM VALUE AND TOTAL MARKETING COST OF A 1-POUND LOAF OF WHITE BREAD Item 1947-49 Percent of total Cents J anuary-September 1967 Percent of total Cents Farm value for all ingredients of farm origin.......... Charges for transportation, storage, handling of ingredients, processing ingredients other than flour, and for nonfarm ingredients...................... Miller’s spread....................................................... Baker - wholesaler’s spread.................................... Retailer’s spread ................................................... 3.3 24.5 3.5 15.7 1.1 .6 6.3 2.2 8.1 4.4 46.7 16.3 1.6 .6 12.0 4.6 7.2 2.7 53.8 20.6 Retail price .................................................... 13.5 100.0 22.3 100.0 SOURCE: U.S. Department of Agriculture. sales dollar as do wage payments. In-plant wages, together with deliverymen’s salaries and commissions, make moving a loaf of bread from the bakery to a retail outlet on the far side of a major consuming area more costly than transporting the wheat equivalent of the bread from North Dakota to the East Coast. Of the total retail cost of a loaf of bread in 1967 — 22.3 cents — the retailer received 4.6 cents as his share. This amount was more than double that in the late 1940’s. The accompany ing table summarizes the various elements which make up the cost of a 1-pound loaf of white bread. In competition with weeds, however, Bragg and Semmes both outproduced Lee. These two Two soybean varieties, Bragg and Semmes, varieties grow more rapidly than others and perform better than other varieties when John are, therefore, more competitive. The different son grass and cocklebur are present, reports soybean varieties were grown in plots that were the U.S. Department of Agriculture. These weed-free, as well as in plots that were infested weeds cause serious problems that cost south with Johnson grass and cocklebur. ern soybean growers hundreds of thousands of dollars each year. Mow or Spray? Results of studies conducted at the Missis Pasture weeds sap nutrients and moisture sippi Agricultural Experiment Station show which should be available for desirable grasses. that soybean varieties differ in their ability to Neal Pratt, Extension Agronomist at Texas compete with weeds. This fact suggests that A&M University, stated that weeds in pastures certain varieties may be preferable to others for can be controlled more effectively with herbi planting in areas infested with specific weeds. cides than by mowing or shredding. Of six soybean varieties tested, Bragg and Semmes both showed superior competitiveness. Although one mowing operation may be less Semmes performed a little better than Bragg in expensive than a herbicide application, re competition with cockleburs. Lee, another soy growth of mowed weeds usually requires re bean variety tested, did best on weed-free plots. peated mowings. Weeds sprayed properly with Soybeans Resist W eeds the appropriate chemicals are usually con trolled for most or all of the growing season, according to Mr. Pratt. In citing relative costs, the specialist noted that a typical mowing operation costs from 85 cents to $1.00 per acre. Costs of chemicals and their application may range from $1.25 to $2.00 per acre; however, three mowings are usually needed to control weeds satisfactorily, thereby boosting the total cost of control by mowing to $2.40 to $3.00 an acre. An effective program of chemical weed control has an addi tional advantage over mowing in that mowing usually is required during the time when the need for doing other farm chores is also urgent. hension, trembling, lack of coordination, an occasional drowsy syndrome, and eventual col lapse and death. Also associated with the dis ease are microscopic vacuoles and other bi lateral degenerative changes in the brains and spinal cords of affected animals. According to the USDA, the most insidious factor about scrapie in animals and currently incurable neurological diseases in human be ings is the long incubation period. By the time signs or symptoms are detected, the infecting cells have already invaded the brain and caused permanent damage. Bulls Versus Steers The Oklahoma Agricultural Experiment Mr. Pratt cautions herbicide users to ob Station has made growth and carcass studies serve existing laws and regulations and to on a large number of beef bulls, steers, and follow the directions on the manufacturers’ heifers. Results of these studies show that bulls USDA-approved label. A visit to the county produced significantly more lean meat than agricultural agent for latest recommendations did either steers or heifers. Carcass fatness be on chemical use, grazing restrictions, and re tween steers and heifers was little different. lated aspects of establishing an effective chem Bulls rated highest in carcass cutability and ical weed-control program can pay significant yield of round while steers were highest in dividends. dressing percentage. There was little difference between bulls and heifers in these areas. Scrapie Research Helps in Study of Human Disease Steers and heifers had a consistent advan tage over bulls in carcass grade. Steers graded Research on scrapie, a centuries-old scourge of sheep, may provide leads for studying neu average Choice; heifers, low Choice; and bulls, rological diseases in human beings, reports the at the low end of high Good. The lower car U.S. Department of Agriculture. In the many cass grade for bulls apparently was a result of years that livestock scientists have studied their deficiency in marbling. scrapie, one of the most significant findings is The advantage of bulls in weight gain, feed the similarity between certain symptoms of efficiency, and carcass cutability indicates that scrapie in sheep and goats, encephalopathy the feeding of young bulls for slaughter may (brain disease) in minks, and kuru in human hold promise for increasing efficiency of pro duction. At the present time, however, mer beings. chandising of bull meat may pose a problem Scrapie, a fatal disease of the central ner unless established marketing channels become vous system, was first diagnosed in the United available, points out the Oklahoma experiment States in May 1947. The disease was intro station. duced by imported sheep from Canada and Great Britain and is still a major threat to the Warmer spring temperatures and prolonged U.S. sheep industry. damp weather are providing almost ideal con Characterized by its name, scrapie in sheep ditions for increases in screwworm flies. Officials and goats causes compulsive rubbing against of the screwworm eradication program empha fixed objects. This practice results in patchy size the need for livestock growers to be even losses of fleece, as well as other skin damage, more alert for possible screwworm cases and giving the diseased animal a ragged look. to take worm samples for transmission to the Other clinical signs are hypersensitivity, appre laboratory in Mission, Texas. Catfish Farming in Texas The production of catfish for commercial purposes continued to make rapid growth in Texas during 1967, says W. G. Klussman, Extension Specialist in Wildlife Conservation at Texas A&M University. From about 300 acres in production in 1960, catfish farming in the State increased to an estimated 3,000 acres in 1967. Mr. Klussman reports that from 20 million to 25 million pounds of catfish were harvested in 1966, compared with only a few thousand pounds in 1963. tection research. An infrared line scanner, mounted in the fuselage of a twin-engine air craft, is coupled to a display unit which per mits imagery of fires and terrain to be viewed on a screen. A rapid film-processing unit re cords the imagery. Fire detection is made auto matic by a target discrimination module which flashes a red light when a hot target is sensed by the scanner and places marks on the imag ery to show its location. A doppler radar navi gation system permits the precise course of the airplane to be determined continuously during the fire-detection patrols. For many people in Texas, fish farming is a Tastier "Goobers" profitable sideline; but for many more, it is a Tastier peanuts and peanut prod full-time business. At an initial stocking rate ucts, as well as higher nut yields, of 1,500 yearling catfish, a farmer can expect have resulted from irrigation and an average annual yield of 1,600 pounds of soil treatments for control of fish per acre. With prevailing market prices plant disease. This finding ranging between 35 cents and 75 cents per stemmed from studies conducted pound and the cost of raising the fish from 25 by scientists at Texas A&M Uni cents to 30 cents a pound, profits may vary versity under a contract from the U.S. Depart between $80 and $800 a year per acre. The specialist says that this wide variation in ex ment of Agriculture. Results of tests by a taste pected profits is probably the result of the lack panel showed that either irrigation or soil fumi of organization in this new industry in Texas gation improved the flavor of peanuts which and the variations in management and market were fried or roasted or processed into peanut butter. When both irrigation and soil fumiga ing abilities of the individual producers. tion were used, the flavor of the peanuts was better than when either treatment was used Fire Defector Developed alone. The fumigant used was pentachloronitroSecretary of Agriculture Freeman has an benzene, which is often used to control south nounced the development of air-borne elec ern blight. Starr, a variety of Spanish peanuts, tronic eyes for the automatic detection of incip was used in the tests. ient forest fires. A high-flying aircraft, operated Mature peanut kernels are the most flavor by Project Fire Scan, employs an infrared de ful, and irrigation or irrigation combined with vice to pinpoint small fires when visibility is fumigation increased the percentage of mature obscured by darkness, smog, haze, or dense peanuts at harvest by almost 30 percent. The drift smoke from other fires. Texas A&M researchers noted that slow, care During the forest fire emergency in the ful curing is necessary to develop fully the Northwest last year, Forest Service scientists flavor potential of peanuts and to minimize the utilized a specially equipped flying laboratory development of injurious mold. to detect more than 150 fires. All of the experi Someday, homemakers may be serving mental missions were performed at night over cubed eggs to their families, reports Texas forests in Idaho, Montana, Oregon, and Wash A&M University. Researchers have learned ington. Most of the detected fires were caused that they can improve upon nature’s eggshell by lightning. packaging. Food technologists can freeze The USDA says that combinations of heat shelled eggs into cubes, wrap them in plastic, sensing and electro-optical techniques are used and eliminate much of the present lack of ap in the prototype system developed for fire de peal and cost of handling shell eggs. f
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