World hog and pork prospects

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Title:
World hog and pork prospects
Physical Description:
v. : ; 27 cm.
Language:
English
Creator:
United States -- Bureau of Agricultural Economics. -- Division of Statistical and Historical Research
Publisher:
Bureau of Agricultural Economics, Division of Statistical and Historical Research
Place of Publication:
Washington
Frequency:
monthly
regular

Subjects

Subjects / Keywords:
Swine -- Statistics -- Periodicals   ( lcsh )
Pork industry and trade -- Statistics -- Periodicals   ( lcsh )
Genre:
federal government publication   ( marcgt )
periodical   ( marcgt )

Notes

Dates or Sequential Designation:
- HP-83 (Oct. 1936).
General Note:
Reproduced from typewritten copy.
General Note:
Description based on: HP-8 (July 9, 1930).

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 026660448
oclc - 30588199
Classification:
lcc - HD9435.U5 A25
System ID:
AA00013004:00026

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Succeeded by:
Hog situation


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Full Text
3,45 46

UNITED STATES DEPARTMENT OF AGRICULTURE
Bureau of Agricultural Economics
Washington


UYV OF=LLtB
DOCUMENTS 8EPT


* PSITRY
'IC flc FPOSITfPY


HP-46 Scptcmbcr 2., !933

WORLD HOG AND FORK PROSPECTS

Summary


Large slaughter supplies of hogs and otner livestock and relatively

,large storage Loldings of pork and lard were the principal factors resulting

t .An the decline in hog prices in the United States during August. .Prizes of

pWrk on domestic markets during the month were steady to hig-ner, but in

foreignn markets pork prices advanced sharply. Lard prices declined during

August in both the United States and Europe.

Ho6, numbers in Denmark on July 15, as officially estimated, were

10 percent smaller than a year earlier. A further reduction in the British

import quota on bacon and hams has been proposed by the Britis.3 Gov1ri'mint.

rBritish bacon imports from October 1932 to July 1933 were about 12 :ercPnt

smaller than in that period in 1931-32, but lard imports and har imoorts

Into the United Kingdom during these ..:onths were larger.

...: In late August of this year the emercgncy pig and sow buyin;: pro _ra.n

&esipned to reduce hog marketing during the comia y,,ear was p-it into effect

in the United States. As a result of tnis program domestic slaughter si.rlies

1 during the first 7 months of the 1933-34 mark:Etin; year are expected to be

analler than in the corresponding months in 1932-33. Details conc 'nming

this program appear on pages 2 4.

A sunmmry of a report on tne operations to date of the Relief Art for

hog producers in the Netherlands appears on pages 9 11 of this issuc.


.1




HP-46 -2-

-Tnited States

Large slaughter supplies of hogs.and other livestock and relatively
lar-e storage iool.ineis of :orXk and lard were the principal factors resulting
in tae decline in hog prices during August. Tnc level of hog prices in
early S.-.,tcuber was about $1.25 oper 100 pounds lower than in late May when
pric:-s v,'rc at the highest level in over a year. The avcra;-e price of hogs
in Ciic.'o for August was $3.97 p-r 100 pounds compared with $4.41 in July
and ,4.Zl in the corres-ondin; month. of last year.

."st o:f tnc. decline during tLie .nontr w's in thu prices of heavy vei.,ht
,iogs an i paciing sows. I-i early Septomb.ar til pri.cc of packing sows was about
70 cinta por 100 pounds below that of a year earlier ai.d it was lower than at
an; Li%., sir.ce lart January. Fri.ces of medi'un w-ilgit and li-ht weight ho's
declined onl;,- slightly in Au;-ust. Durin, trn su-'r.er months and during. most
of t.io ;Tar prices of heav, "'i At .-o ,s are usually somewhat lower thin prices
of m:di -*.:i7 -.;At an;d li. It wcig.-t hoa.s, but from Mla' to J-ily of t.-is year heavy
wei;it ..o'.s sold at abo.it tt.c same prices as i.-edluhn weig'nt and li'gt weightt
0ogs. T-r e strong storage demr)nd for lard was probably a i.major factor
respo.sibl'c for t.e relatively; nigh prices of heavy eight hogs daring this
period.

S"c.t:hter su2jlies of .i'.s i:. August, althoughh seasonal m smaller
than in July, continued relative'.y large.- Federally inspected slau_-htcr
totaling 3,,7?,000 ncad x:ciusivc of p',s an" sows purc.-sed on govcranLmnt
account wcs the second largest Au-a.:ust slaauhter on record, and it was 17.1
percent lcrr.r than in August 1932. Inspected slau.thtcr for the 4 i.oa.ths,
May to A:'Last, amounted to 16,304,C,.0 head, ten largest total for that
period or. record. Inspected slaughter for the mar-:keting year endian
Septea,,brr 30, 193K, apparently will total about 47,300,000 herd, tan: largC-st
markti:-,L- car slau'ght r since 1928-29.

0:' A".,ast 23 the Denr.rt.ncnt o01 Ariculturu, under the tens of the
Agriculturu.1 Adju.tm.-nt Act, .-.t into -ffect an ..mcrecncy procrrrm dcsi: -ed
to rmacuC -"c.rk..t supplies of 'ogs during the _!.33-34 marketting year. Under
this progr .m it is planned to -purchase approximate, ly 4,000,00' -)i-s, w.uihing .
less th:in 100 -pounds, at fixed prices considerably hi gher than the oprseont
level of ..-oc. prices. Prices which are beinr 'Paid at Chicago vary from
$6.00 for pics weighing from 96 to 1i0 nomnds to $9.50 per 100 pounds for
pies :..ci jin: from 25 to 30 pounds. Prices at other markets are fixed at
specified differentials above ?r below Chicago prices as conditions justify..
In addition to the buying of 'nijs th- plan also.provides for the purchase cf
about 1,000,000 sows due to farro',,? t..is fall and '.'eighing in excess of 240
pounds. Suci sows are being purchased at a premium of 94.00 per head above
the .r'va lin& market price c.id are not subject to dockage. These )ias and
sows are beir.L slaugnterced at nnacking plants operating under Federal
inspection, 'uut the products from the slaughter of suci pigs and sows -.i11
not e-t.:-r the-, re ular domestic cons Liption channels. Government purchases
throi.-:- r-c wcak ended September 9 totaled about 2,500,000 pigs and
49,0'jJ sows.



*






HP-45


Corn prices declined unevenly during August, but tne relations.-Ai between
hog prices and corn prices continued unfavorable fnr hog production. 3Ised
on Chicago prices the hog-corn price ratio in August was 7.8, about the sane
as in July but considerably lower than the ratio of 13.2 in August last year,
and it was the lowest for that market in at last 35 years.

Whiolestle prices of fresi- pork advanced sharply during August, b-t
prices of most cuts of cured pork were steady to lower durit; the mo.th.
Lard prices averaged lower in August than in July. The composite wholeslae
price of ho; products at New York averaged $11.39 per 1'.'0 pounds in A.'lust
compared with $11.18 in July and $12.09 in the corresponding; g :..:oth of 1932.

U.,ited States exports of lard in July wsre slightly smaller t.-an in
June, but they were slightly larger than in J-ilyz 1932. E:coorts of pork
during J-1ly increased and the total for the moatn was 4 percent lar er than
in June cnd 10 percent greater than in July last year. Shipments oi bath
pork and lard from the principal por.ts, during. the 4 weeks ended Au ust 26,
were lnr-er than in the corresponding weeks of 1932.

Shipr.e..ts of hams and shoulders during July., amlo _'tini- to 9,359,uJ0
pounds, were slightly- smaller than in June but t-.c' "*.er. 13 percent lar er
than in July last year. About 90 percent of tiae exports of t-iese oro-iicts
in July were consio&ed to the United Kingdom, t.-e pri.-,cipal foreign nutlet
for .haans and shoulders from this co'u.tr-y. Exports of bacon in July of
1,626,000 pounds were considerably larcr tn)an in Jjne but they '.verA smaller
than in July 1932.

Lard exports in July totaling 36,628,000 pounds were about 1,600,JJ00
pounds less tha., in, June, but they were 1,0',,0('; pounds greater t.ar i.. t.e
corresponding : month of last year. Sninpnents of lard to the United Ki. do .1
in July amomted to 23,4-06.000 pou-.ds, auout t.ec sane as in June, 0it 70
percent larger than in July a --ear e-.rlier.. Exnorts of lard to J-r: n.i'y during
the month amountia. to 2,'A24,0)0 pounds were :nly about one-half as lar -.e
as in June, LLnd were less then one-fifth as large as in July 1932.

The Tm.rketin., scausa. for t:;e spring -i; cro- is largely from October
to April, inclusive. 3a',-td on the results of June 1933 pig survey., ins-ccted
slau'itcr from October 1 33 to A.nril 1934 nor.-.all wnuld have been expected
to sno;w a slight increa-,j over that of t..e s-:;.: p.rind a ;,car carli:-r. !Fo:-
ever, bcc.usL o0 the prusont omcrgency nrorf.n. 0o bu ir-, sprin-., )is, a
reduction in h.o0. sl. u,,.t.cr duri... those ru.ont..s E.- b-.r:t 1' pL.rc,.t s.::.s
prooaole. All of t1i s ('joroase will projab i occLur 'at.r January 1, 13-_e.
The larctst increase i", the 1933 spring pir cror: w's in tch Eastern C r..
Belt States, e- r.c-v-,ll, a large proportio-" of t .e total nog mar::cti. .s
duri:i t:'e fall cad oai ly printer are spring riA s fro this section. S)ri:i.
pigs from the Western Cor,: Belt arL uzualiy ra.'lactcd in 'ar.C-st .umn .'r-, i.:
the Inte wintLr and ear].,y sprinL. It is prokiblb t.at a major pr-portion of
tne spring: r.i.cs in the E:.Utern Corn Belt wcr1 ;,-d e too ..Lfl.. to J. sold
under t.e prescat pi. buy'in- proraa.i. T7 .e n'sort cor:. crc.- in pros.-cct i..
many sections probably, will tend to cause marketi.. s to be earlier tar.: ..s:Vl.
Slauh.itcr supplies of .oLs duri rii the period from October to L'eccn'j r 1953,
tho-refore, are expected to be at lest as o as ian the corr. s o.ndi.:m ..ao-.tl.s
of 1932.


-3-





HP-46


Canada

T'.e price of bacon hogs at Toronto continued to advance throughout
August -.d for t-,e week ended August 31 reached $6.60 per 100 pounds, .American
currency, a:. advance 6f about 75 ce-nts over the week ended August 3. For the
5 we?.ks ended Auust 31 the average price was $6.20 compared with $4.55 for
t-ie sane p:-'riod last year and $7.17 for the corresponding period of 1931.
Bacon ."-o, rices at Toronto have advanced steadily since January, except for
a sli :nt recession in June. The greatestt increase occurred early in the
year .Vc.'. prices rose front' $3.18 in February to $4.27 in March.

Ho radin.,s continue heavy, the number reaching 232,000 for the
5-wek -criod ended A';-ust 31, compared wita 238,000 last year for the same
period. For the 8-;mo.ths period fro-m tL-e first of the yevr to AumIust 31,
gradi:is mounted to 2,087,000 -.ead, a reduction of 2 percent from the
unusual .,eav, merk'-tings of last year. At ti'e end of July the feed
situation iir Canada was re )orted as generally y unsatisfactory according to
the Ce-.alir;. Government report on the livestock and meat situation. It
was .-io:-d, ..c-ever, that the forced liquidation of -logs w..uld not be
suffici.i t to affect tne market to any extent.

Ex-orts of ..og products from Canada continued relatively large, but
the quantity' of bacon exported is limited by the numb ,r of hiih quality
bacon :-o.,s marketed. T.c number of ;.o..s .graded as selects, from whichh the
Wiltshirc .ides suitable for marketing : in the United Kindom are cut was
330,03'.- :.ead for the 35 -we:eks ended Au ust 31, recprescnting about 15.8
perc..it of t.-c total numbers graded, compared with 310,1 '7 -ead last vcar
for t.c s.-c e riod, which was 14.5 percent of the total.

Alt..j-ou the oxoorts of bacon to the United Kingdom are far below the
quota estcblished at tLi Otta.v. Conference in 1932, a marked increase has
occurred d.rin^ recent imontl-s co:nmared ".it.- the aine period last year.
For t.ia first 7 months of 1933 exports of bacon rnd hai& to the United Xin-ndom
amountitd to 38,788,000 pounds, a-id were over twice as lnrre as for the same
period i. 1932. Pork exports amounted to only 1,309,000 pounds compared
with 3,071,(CG pounds last year. Exports of bota- bacon and pork to tio
United Strtc-s were about half the amn nt exported to that country last. year,
whereas live ho& exports to the United States have become negligible..s

United Kinvdoin end Irish Free State

T.-c proposal to reduce total non-Empire cured port imports into the
United di-. dcrTi by about 12 percent as of September 15 was not supported by
ta bul-: of the countries 7,ffected, according, to cabled advice of September
11 fra .o'ricultural Attache E. A. Foley at London. The ratc of import -
prcovillia_ up to September 15 was about 82,000,000 p->unds monthly from all
quot.-c-wvred countries, wnica include all imports exceptin_,g a rclativuly
small a.;o-nt from Empire sources, principally Canada, The United St:tos
quota has been at a monthlyy rate of about 6,900,000 pounds. The reactions
ordered for Scptcmbcr 12 would have reduced the total quota to about
72,03), 100 pounds, and the Unite.d S.t.tus quota to some 4,500,000 p.,.nds.
At present, definite advices are lacking vit.. respect to the volume admiss-
able 2ftcr SuTtember 15, to cover the period up to March 1, 1934. 0-1 that .


-4-






IIP- 4 -5-

date tae more permanent features of thL. British pla.: to protect don'stic
hog producer-s are scheduled to come into effect. November 1 has been set
as the date for reporting hog delivery contracts ..de with bacon carers at
pre-arran ed prices under the terms of the above plan.

T.he snort supplies of bacon during August pushed the average price
of Dornii. Wilts,.ire sides for the month : at Liverpool up to $17.C;9 per
100 pounds, according to cabled advices fro..: t-.o Lo-.don office of t.:e
Foreii Aricultural Service. That figure was the highest dollar price
since Lecembcr 1930, ond sterling values also were unusually hi'.. L te
August -nd early September prices were aroj.nd 89 and 90 s-.illings p.r c.:'t.,
equivalent to about $18.00 $18.30 per 100 pounds, basis of inrorter to
wholesaler transactions. Americrn Creen bellies sold up to $12.95 late
in Au-i.st, exceeding all prices since Septem'ter 19C1!. C nadia. grec.n
sides t.ovcd upward during Au-cust from $10.91 to $16.05 pjr 1CO pounds.
Part 3f the increase in dollar quotations for pork y-'roducts late in
August wa.s the result of a change in exchange rates.

Hcevy shipments late in July and early Auy st to neet holiday
demands for bacon necessitated li.i-t continental s'.inm.e-nts later in A.i.ust,
to confonr.. to quota figure. Th-e resulting short supplies were lar: ly
responsible for the price advances of recent we-ks. There wcre also
stren th enin,' factors in the holiday- trade, fao.vrrabe w'ct'h- r and
prospects of a further rci'.ction in imports. Price a&dv-.ccs are be: n:ing
to dra:. public protests f-i'..i consumers. American breen bellies .ave been
in li '.it supply, and shared in the advancing prices until supplies ".ere
exhausted. Tctal bacon imports for the 1932-33 season to July 31 were
11.7 percent smaller tnan the corresponding 1931-32 figures. Imports from
the United States and Denmark ver; down 20.7 percent nad 29.4 percent
respectively. Imports fror. the Netherlands -nd C-nada, ..owevcr, were up
72.1 crcrnt and 63.1 percent respectively for the season.

T.ke ,rl:' August decline in Liverpool quotntio,-s c.n American s'-rt
cut ;rcen hcr.s brought the averpje for the '.n th dcan to $14.84 por elC
pounds. As the month advanced, however, ha', prices follo'.ced ti.e ur--"rd
movement of bncon and were up to $15.65 before tnu close. SeasonaLly :'.,-vy
ham shi iments in July brought total imports r'.i imports from the U;nitl
States tj the l-.rgest figures for an:' month r.-nce July 1230. Car.adi"-
arrivalz reached the record volume of 2,4'Y),'. p u..s. p.ost of the
Americ-..i c.red por: import allotment is beinr, 'itilizcd for haC" shi -. its.
Total .an imp-orts into Great Britain for thL c rr..nt seaso.. t; JlY.r OL
were IC."7 fp-rccnt larger than the corr. 'on1,Lin_,; !~I1-32 figure.

T2.. easier tone in the British Lard m .r.-h t djrin,: r..ost of A: -'st
resulted in a Liverpool averse for the -" o.nt:i of $7." K pcr IC'' -. c:is.
That fi-:.re was below the avcr'erz of the 3 pr-celing tur.tl.s b-:t c.m.-
tinued somewhat above that of AaL-ist 1932. A i'ir'.cr tone was noted, .v.':vc r,
as Au_'- nt 1-.7:. drew to a close. Lard prices .tav-" be-i. senaitive to
devcio'-)ncntn in the United States, and uncertainties re--.rlian exch-.. :c
rates i-s resu-lted in cautiousneEs and some !ini-to-s. ut,. b.iyin 1 fi :ite
advic.s -. e not available rcspectirnj rep-rc isnic-.i oil t..t Britis.1 1:'ri
market from the advance in Gurman duties in July, but in all pnrb-ib1 i ty
there wvs a considerable movement of lord from Ger-an to British noats..






HP-46


British. imports of lard were unusually lare in July, and indications are for
heavy arrivals in August. Total lard imports this season to July 31 were
about '3 ncrcent larger than the corresponding 1931-32 figures. Liverpool
lord stocks or. September 1 stood at the unusually ".i. figure of 8,492,D00
pounds. The corresponding 1932 figurc was 3,412,0%j' pounds.

rPonestic fresh pork supplies at London Central IMurkets w';erc seasonally
large in A'-:.-jst, at 2,903,000 pounds, but thiy recrc considerably undcr
supplier of a yerr ago. The possibility .)f -,i her domestic prices for bacon
hogs su ,ets that some hogs will be attracted from pork to bacon c ..:nnels,
and .at t..ore will ot least be no surplus Qf fresh pork as the season
?.dvIcal2cs. June returns show a total of 3,.04,4C00 1ogs in England and Wales
against 3,164,600 i\n 1932 and 2,783,0',," i:. 1931. The snarper decline in
LLnbcrs v.wich normally woi'ld be expcctcd as a result of the unremanerntivc
oricus ,-.f the last 2 ,ycars nas been rct.rdol by expectations of the results
of the Pi: rnd Bacon Marketin Scieme. S.iithfield sunpplics of frozen pork
continued .ell ci edr cf last yeor. I.-iort:; i-: July were over twice as largo
as in J'1I, 1.2. I:.-. t'.c Irish Free State hog purchases for curin- tiring
Au-gust vo'rc s]i -Jt.l; larg_.r thc.n a year earlier, but exports of live ho.;s
have be.cin :ch sr.zaller.

Countries I-mortert in Pritish Jarket Supnlies

Uno'ficial returns covzrin: 3Britis3 :n-rk.t r..-cipnts of bacon in
Aua-ust illustrate, t-'.e reductions below last L.'ar in current supplies,
especially fror. continental Europe. Receipts fro.n Can.:.da arc exc optionall
in s.o"''in az- increase.

'cn n.rL:

Official export fi-c:rev, for Denr.ar.: covcrin,' July place becon exports
for that ::in.th at 54,691,000 pounds, a decli.-:e of 30 percent below the
July 1932 fieares. Danisn ex ,orts for the current season to July 31 were
18 percent unL.cr the cor.'iospo..ding 1931-32 fic.-rres. T.he decline in exports
has bee'. acco,.:panicd. by a drop in ho numbers. EDcs in Dcnmark on July 15,
1933, totaled 4,383,2'.00 hued, a reduction of 10 percent as compared with
the nu:iocr on June 20, 1932, 'nd 20 percent as compared with the record
number -,f 5,455,0 head reported o.- July 13, 1931, accordingt to Vice
ConsLl 2. Gjcssinc: at Copenha,en.

T-.c total number of so"s was 10C percent below.- the number last summer
and 29 n.rcont below t-ej record number in 1.93. The number in farrow was
estim--.'.d at 278,000 head, a decrease of 17 percent cor'pared vith last
swu.mr.r, '.;'eres, those not in farrow showed an increase of 4 percent to
164,.300. Of this number 15,000 were set aside for slaughter. Owing to a
change i.. classification from age to ;woight, it is impossible to lake
an accurate co:.parison of the different classes.-of hogs other tna.n breeding
stock wit'C" those of former years. T'-is year the total number of hog.s,
otner than breeding stock, on July 15 was 3,916,000 head as compared vith
4,364,0,.0 in 1932 and 4,7?8,C.0 in 1931. This year they, were classified
as follows: Suckling pi 's, 1,v28,000; 1,ogs under 77 pounds, 1,064,000;
hogs 77 pounds to 132 pounds, 993,000, rxid hogs 132 pounds and over 826,000.


-6-




HP- _-7-

Denmark: Number of nogs by classes at various dates, 1929 to 1293

:Board : Brood sows : hogs :Pigs :
: 4 : : : 4 : 2 :Pigs :
:months: In : Not : :mont.-s: to :under
Date : and :farrow: in :Total: and : 4 ; 2 : Total
: over : :farrow: :over :months:montnis:
:Thou- : Thou- :Thou- Thou-: Thou- : Thou- :Thou- :T:-ou-
:salnds :sands :sands :sonds:sanris:sand:s'i-ads :s. is

July 15, 1929 .......: 19 310 : 121 : 434 776:1,285 :1,104 :3,618
15, 1930 .......: 24 : 390 : 190 : 580 : 1,011:1,602 :1,653 :4,872
Jan. 15, 1931.......: 27 : 385 : 189 : 574 : 1 .79:1,769 :1,C32 :3,181
July 15, 1031.......: 31 : 430 : 194 : 624 : 1 .L5:1,855 :1,778 :5.453
Jan. 15, 1932 .......: : 355 : 195 : 550 : 1,320:1,932 :1,655 :3,-57
June 20, 1932.........: 29 : 336 : 157 : 493 : ,18:1,688 :1,473 :-1,886
Nov. 19, 1932.......: 28 : 321 : 163 : 484 : 1,260:1,659 :1,395 :4.826
Jan. 23, 1933.......: 28 : 308 : 166 : 474 : 1,140:1,48 :1,421 :4,543
Apr. 18, 1933 .......: 26 : 303 : 158 : 461 : 73:1410 :1,414 :4.534
: : : Otn r .0:o-s
: 132 : 77 : Under : Si-ck-:
: : lbs. : to : 77 :lin.- :Total
: : _: :&- over:132 lbs iLs. :niz- :
July 13, 1933 ...... : 25 : 278 : 164 : a42 : 626 : "8 :1,C64 : ,,,: 4,383

Divisio.. of Stati tical and Historical Research. Co..piled from S atistit.-:e
Efterretniiier published by the Statistical Department of rcnmark, May 2?', 133
and earli-r issues. July 15, 1933 supplied by Vice Consul E. Gjcssinz,Co.:'nhagen.



In t'-e Fetherlaands, indications are that higher prices for no;s have
accomoanicod t administration of the Hog Crisis Act of July 1932. Ex .orts of
bacon, '.l.uiill running. somewhat larger t-rin last year, are considerably below
those of the early months of the present season, as reflected in British.
official fiDiures on imports from Netherlands. In view of the downward t.-'nd in
Dutch .og numbers in the past 18 months, tnc rjpro-.ction control fcatur- if the
Hog Crisis Act has not yet been tested. See fo;llo-ving stter.ment.


The O.rc.tion and Effects of t;e Io,., Crisis Act in the ileth-..rlpnds P/

1. Dcvilopm.cnts 1 edinin.-up, to t.he adotion i .1 the Act

Thc 1icthcrlands Hog Control plan was entablisl.-d in AuGust 19h'7: 's a
result )f requests made to the Government by no producers anid bacon c-'r..-rs.
Relief -a!d co.itrol measures are in kecpir..; wit:. ti-. Agriclta.raL -jolic' of
the Dutch Government and are stro:-gly s-ipported by ti.c Llitioaqal A.Iric :1. .ra.
organiz .-ti U ,. T-rc low prices of :.o,. ind w io prod.icts, result i.,. to .;,..i
ext,.nt ."ro..: t. c grect increa.sc in noe a jb. rs i t..- th.rrlands, t.... i ..' r -
inG co np.-'tition on thL Briti.sh mairk:,.t frcm au..'.:.,: a>-: the Baltic c .it:'.. -:,
and t.Co -blidonm.nt oi the gold st-rndt'.rd by Gr. t .ritai, :,rLci Ait-'t i t L
&r.. iji. L'_..di.i.,. n-ni.w,-_' C oauAlsirb.., ._
/i Abstr-et of r. re -Trt jru jrarod in Eur o L. .Ci 'it '... H.ER. 1, th.
rJ,ir i Aric-ultural S rvcie.





HP-46


2. Objectives of the plan and methods used

The main objectives of the plar; are: (1) The establishment of a price
to producers which is "at least equal to prod.:ction costs", Pnd (3) tne main-
tenance of t e tr:tch export bacon market. Tne essential features of the plan
used to accomplish these objectives are:

(1) The fixing oc prices on bacoi hogs, the-products of
whichiare exported.

(2) The co:i.pl'ete control of exports, including the com-
plete control of tr. marketing of bacon 'ogs and
the imposition of a slaughter tax on hogs for
domestic -cornsumptio.t to offset losses incurred on
exports.

(2) ?-re control of irm-orts, i.cl-uding the 'evy,:ing .of
import duties, to equalize the price of domestic
nmd foreign nor'.:.

(4) The control of hog production.


5 Governmental set-uu for the opcrati-rn of the plan

A iovernmrnnt commissioner was apuointAd to represent tnc. Ministry of
Agric-.lL-urc in the supervision of tne scheme and policinE tne activities
of the organizations s and individuals engaged in carr;'ing out tfh. provisions
of the Act.

The Varkensce.ntrale is t.-b secmi-official agency created to regulate
hog proc.ction, fix prices and control imports, exports, and marketing of
bacon nc,,'s. The activities jf this organization a-re guided by a board of
seven directors representing the government, tioe f.rm. organizations, anid
the bacon c.rers.

Tne Prcvincial Hog Centr.-ls are agencies set up in each of the 11
provinces f:r the control of production anwd the promotion of educational work.
Local committees are also set up under the provincial hog centrals.

*-. CfLcrations of th, plan to date (Marketin. and Price-Fixing)

It srotld be nited, before the plan is considered in retail, that
the pr)iucts .f bacon I.-ogs are largely exported, and that the h)gs produced
for doncstic consumntior. are for thu most part more nearly a meat type hog
or fat n.;., In the following disc '.ssion the term bacon ngs will be used to
refer t, :.,s wrhcn arc slaught-rel f)r export and the term fat hogs, tnose
slaug'nt>r.3d for domestic consumption.

T.h.- Varkenscentrale fixes tbc n-ricc of bacon nogs at a figu-re wnich
has been detcrrnined on the basi. of production costs ond ot.n r considerations.


-8-





HP-46


This fixed. price has been changed several tires since the adoption of t'L.e Act
in the sur.nmer of 1932. When the rice was first fixe.-l it was at a level
considerably higher tnan the trnc prevailinJ ;rico. L,..SLS incurrel 3:1
exnprts .,erc ard are mare up by funi.s secured fro.-. a sla'jte2 tax )-i .*s for
domestic consur.ntion. Prices f ht-rs for dor:.ctic cons'.-:.tion are nit fixec.,
but prices of such hozs h-ve ac.vrncci sci.ilarly to tnc prices if b-ic-n .0:Cs.
The Varkonscentrale atternots to maintain a stable rel-tionsni boetvecn prices
of fat haLs nd.- prices -of bacon os cil s-1.all ;--rc-jas:s Af fat i.;s -:.ve
been male by the Varkenscentral. in order to. streirithe:-- fat .o richess -'.
keeping :- vit:- this policy.

In 'ay 1932, just prior to .-Aotion nf tle ho;: Crisis Act, t -e price
of fat hm :s in the I'Tetherlanc.s was about $5.35 cor 100 OnILs. In :1., 1933
the price of fat ho s averaged about $8.22 r.jX th-. tax was $2.54 per 1 '0
pounds. The price of bacon Lbogs in Msay- 133 was abut $9.00 as c..
with $5.58 ir May 1932. a,/

Tu- following factors have c-oitrituted to .-.e maintoncr.ice f :)
prices in t .e Lethcrlnnds at a .i..i .er level thai: .:-rn the 6 '.o-t::s -)rnor
to the a..c:tion of the Ho Crisis Act in the sanr':-er of 1932:

(1) T. e very low Icvyl -f hn -rices a '-,. t.:e 'r.favorablu
rcl-tionship between ho prices -r.i fe-d prices
Curing; the first 1-if -f 1132 rc -ulted in a. sv.b-
st.ntial reduction in 'o rolucti m. Trhi reduction
w.-s almost entirely iniepcndC"-nt of thJ, .-. .roduction
control measures whicn were enactudl t.o l.te to -ffect
the supply situation in 1932 -z.ni tat first q-arter of 13S-.

(2) T.:c rrice-fixinc cvn. export c-Ar.trol meas-rcs for bacon
.-ocs resulted in an increase in cx irts. This incrctse
was subztxittial altL.o-., ch::ec'ei to s.nr.c extent in ituL
1932 as a result of the aL.] tin i f a,;re. cr.ts li.:.itin -
im;,.rts of cared ,ork int-o t L" ,'it,. in co.C., t
principal '.tlet ..or the ex, 3rtj. of racts -f aco: .1
:.- s slau utteredd i-i the 1U-therl:*:.".

(3) Because of the decrease- .ro .,cti.Dl C. i:erjanesd 2x .,rts,
tve supply of :,o available for C.o:..ctic cons-.. -ti .',a rs
reduced n-nl retail ricos of j-. : .-roC:cts rose.

(4) In ricc.:1t months hi:.her ..rice. of o:.c : 2: t.e 3ritis.:
*-n. Gurrn:i markets "slo ailed i-. t r,-.i..t-. c..c2
D>'tch ho" ; prices at a :evel :.i. ...r t: ma t..- t rcvail i. -i
before the adoption of t:.. Cri;;is Act.

a/ COnversicns to Unite. States .urricy for t. -, ice in t .Is ;ar"- 7c.7
wero !.i.-de r.t th. e::chan.L rate 'rcvail in i : 'i. t:.- v~' e,,ed. S t' t. :.r ",
1933.





-10-


An attempt was made to examine the effects of the slaughter tax on
prices for fr.t hoes mad on retail prices of ho: products. Hog prolAction
in the ITetherlanis had begun to iccline .t tn-" time that the slau-itcr tax
was first imposed. In view of this reduced production, l advance in
N-hod prices probably would have occurred in the absence of the relief act.
There is evidence to indicate that processors and distriL- tors have absorbed
a portion of the slaughter tax. Althou;.. so.ne retail price data and hog price
data ,cere submitted, the available price statistics are inadequate as a basis
for determining : the incidence of the slaughter tax.

3. Production control

The Hc; Crisis Act and subsequent decrees make it illegal tj sell or
own o. o, w;:cirhin in excess of lu 'ilo,:rams (22 lbs.) unless the nhg has
been ea.-.rrarkcd in accordance with the provisions of the Act. The total
number :-f earm--rks f)r any period is determined by the Varkenscentrale
wit.: the approval of the -overruient conr..issio:.er. In detrrminin; the number
)f e.:r.,:-rks to be issued, the Varkensccntr-le is authorized to give con-
silcrcL.tion tc the probable proiucti.n, th-e innediate an,. future su ply of
market -Ij-s, the possibilities in tie export mark-.t and the probable
domestic Cel..cnd for pork. T-,e ear-.arks are issued by the Varkenscentrale
to tihe Provincial Hoc Centrals -3n. thro:'..;u: the 1icrd co;.mittees are allotted
to t.:c inr.ivilual farmers. Producers are ch.-;r' 10 cents) for each e-armark allotted to them, nn.L the proceeds Df tnese
fees .re used to defray part of the expenses of a'c-.inistration.

A prohibitive price for ear ta;s in excess of the number allotted
;y the Varkenscentrale is essentially the control -ovice of the Netherlands
ploa. Ec.r tt;:s in excess of thle allotted nu..bJer m ,' be purc-.ased by
individual farr.ers .u.t the price of "3.50 is desired to be prohibitive c.d
to restrict production to the runbor -)f ear t,--s determined upon by the
Varienscen trial e.

Duc tc the unfavorable relationship of hj;; prices to feed prices
ima.nclir.tcl prior to t?1h enactment of the Ho_; Crisis Act, ho. numbers and
bre3din- operations i -.d beeAi reduced to such a point that to date the
number of ear.x-rks or level of production determined upon by the
Varkcnscer.tri.lc n?.s been in excess if the requests for earilar-ks on the
part of fr.rr'.crs. Production control by le-,isl,.tion has, therefore, been
only niominal c.ad las not booeen put to a test.

6. Principal difficulties encountered tnu.s fa.r in the operations
of t.ae Ho-; Act

(1) It h.s been found difficult to maintain retail pork prices
boc-'.se of the lar e supplies of cheap beef. The unprofitableness >i the
dair,, industry has forced the narketin.; if a l.r.;e number ef cows. An
or a.tiiatio-.. f-r hmanling beef supplies, siril,.r to the Varkenscentrale,-is
unie-r condicrrtion.


HP-46






-II-
KP-46 -11-

(2) Under the present set up there is considerable opportunity for
illegal dealing in unmarked pigs. Counterfeiting of eararks is also a
problem. Both of these may prove serious difficulties when production irr-
creases and when'production control measures-are put to a test.

(3) The:relations between'breeders and feeders of pigs are of some
concern to the Vark:nscentralo. Prices of feedcr pigs have advanced mach
more than bacon hog prices

(4) In the operation of the Hog Act thus far, thc Vark.nsc ntralc
has only attempted to fix the price and control ma'tketings of bacon hogs,
Officials of the organization feel that possibly their greatest mistake to
date was their failure to take. over at the start coroplet control 3lso of
markotings: of hogs for domestic consumption. The inability to control
marketing of hogs for domestic consumption as well as for export has at
times proventcd the smooth operation of the scheme.

GermaVny

The recent firm tendency in lard prices at Hamburg, duty unpaid,
resulted in an average Aucust price of $11.67 per 100 pounds. That figure
was somewhat lower than the July average, but considerably higher than a
year ago in both marks and dollars. Dollar prices at present are about
double those of last March, and prices in marks also have made a material
advance conicident with the strengthened protection of German domestic fat
producers. The import duty on lard remains at 1 mark per kilo (15.40 cents
per pound at exchange of September 12). Lard imports in July wore unusually
small at 7,716,000 pounds, being little more tlhn 1/3 of the July 1932 im-
ports. Indications are for continued reduced imports. Details aro lacking
with respect to recent developments in the German n-imal fat situation. See
"World Hog nid Pork Prospects" of.August 25;1933. Total lard imports into
Gormansy for the current season to July 31 were 6.1 pcrc-nt smaller than the
corresponding 1931-32 figures.

Prices in mar s of heavy hogs at Berlin made a seasonal advance in
August, but were somewhat lower than n year .eo. In dollar equivalents,
however, the August 1933 average of $11.78 p-r 100 pounds was the hi&`est
for any month since January 1931 and about $2.30 above the August 1932
average. Returns from the June pig survey in:dicato some upturn from Janu-
ary figure, but a total smaller than in Junec 1932. Food pric-s in GCerarn
have tended to advance in recent weeks, as has the price of hugs ir marks
from early August to early Septnrmbcr. Market receipts in July and At:-st
were somcvehat larger than last year, according to prolimir.ary figures. FYr
the current season to July 31, however, hog receipts at 14 cities .ore 11.9
percent below the corresponding 1931-32 total. HE; slaughter at 36 nrints
to July 31 w~or 13.4 percent behind those of a year ago. Bacon imports cn.-
tinue considerably below those of a year ago, the cumulation seasons' total
to July 31 being about 36 percent below the corresponding 1321-32 total.






HP-46


Hogs and pork products! Indices of foreign supplies and demand


: : Oct. July_
Country : Unit : 1909-10 : .1924-25 : : :
and item' : Stol913-14:tol928-29:1929-30: 1930-31 : 1931-32 :1932-33


average : average :


INI TED KINGDOM: :
Supplie,,dome stic


*
:*

:


fresh pork, : 1000 :
London........:pounds:
Imnortc : :
Bacon : :


Den uxrr .......
Irisn F.State
United States
Canada .......
Oth rs .......
Total....
Ham, total.....
Lard, total....
DENIMA.C:
Exports -
Baco. .........
CANADA:
Slaurgter -
Hogs, ins pected
GERMAiNY :
Production -
Hog receipts
14 cities.....
Hog slaluglhtLr


* II *
: I
I:
: II
II
II

II


II



:1000's:


: 46,787


2u5,468: 419,006
44, 158
152,042: 89794
34,872: 64,236
36,067: 136,299
128,449: 753,523
79,475: 106,307
183,256: 229,527



: 416,987


1,434: 2,239


: II


36 centers....: :a/
..Imports. :1000 :
Bacon, total.... : pounds:a/
Lard, total.... a
UNITED STATES:


3,708:

2,212:
137,473 :


2,692

3,354

14,278
135,285


52,452:


506,295:
:36,461:
54,836:
13,196:
:183,683:
:794,471: 1
:97,298:
:242,433:


499,670:


: 1,827:
: S
: S
: :
S2,784:

: 3,604:
: S
: 14,486:
:177,500:


Slaughter :
Hogs,inspected :100CJs: 27,789: 39,898 : 40,045:
Exports ::
Bacon : 1000 : :
United KingEodoimr:ounds: OR P,288: 55,371 : 43,556:
Gerany .......: : 1,306: 9,831 : 5,536:
Cuba..........: 6,356: 17,404 : 13,132:
Total .....: 146,666: 117,793 : 97,219:
Hams,shoulders : :
United Kingdom: : 117,993: 121,060 : 67,336:
Total.....: :137,170: 144,32C :107,855:
Lard : : :
JUnited Kingdom: 146,075: 19-1,326 :212,824:
GCrm-n:y ......: 117,373: 159,656 :1 5,023:
Cuba..........: 31,116: G7,741 : 65,507:
Netnerlrnds...: : 30,454: 31,595 : 39,119:
Total.....: 396,734: 613,040 :660,728:
a/ Four-year -verage only;figures for July,August and


: :

59,821: 81,641: 65,482
: :
:
676,482: 746,294:591,261
23,734: 23,413: 16,576
22,113: 7,083: 4,995
2,545: 18,974: 31,243
277,859: 275,121:303,702
.,0'15,983:1,074,195:949,779
78,342: 75,196: 79,215
263,732: 235,079:246, 694

*
: :
674,622: 744,477:607,924
:
9

1,621: 2,422: 2,361
:

: :
3,094: 2,955: 2,601
: :
4,147: 4,084: 3,534
: :
20,266: 38,987: 25,340
1-5,536: 196,114:183,662
:
S

38,104: 40,434: 40,589
:
: :
18,046: 5,857: 2,318
391: 1,292: 1,221
8,526: 5,892: 3,545
35,148: 18,007: 13,911
0
64,016: -14,487: 54,879
77,682: 56, 56: 63,077
:
231,227: 201,921:234,050
C3,754: 131,338:121,092
37,780: 28,315: 9,545
21,085: 29,283: 32,436
431,101: 471,392:401,661
September 1914 not available.


-123-


*






-13-
HP-46

Hogs and Pork Products: Foreign and domestic average prices per 100
pounds for the month indicated, and stocks at the end of each month

J u : ul
Item 1909-1913 1925-1929 193 9 : a
JS 1933 19'31
: average : average : :
: 0, S


Prices -
Hogs, Chicago,
Basis packers
and shi-pers'
quotations .. :
Corn, Chicago,
No. 3 yellow .
Hogs, heavy,
SBerlin, live
weight .
Potatoes, Breslau
feeding .
Barley, Leipzig .
Lard -
Chicago .
Liverpool .:
Hamburg .
Cured pork -
Liverpool -
American short
cut green hams:
American green
bellies .
Danish Wiltshire:
sides ...:
Canadian green
sides .


Stocks -
Inited States -
Processed pork c/
Lard in cold
storage :


JJ. .JW.LC Q


8.00

1.16


11.71

.35
1.71

10.75
11.86
12.67



15.80



16.56


15,43
1,000
pounds


JJU ...L


11.37

1.76


16.03

.67
2.22

15.18
15.80
16.26



2G.01

21,64

25.04

23.09
1,000
pounds


757,402

177,316


. JU J. .L a




4.58

.57


8.25

.46
1.73

6.96
7.22
7.71



13.33


JUUJL I L Lj


4.49

.78


8.26

.45
2.06

7.04
8.26
10.46



15.22


7.83 a/10.78


9.23

b/
1,000
poundss


643,052

121,618


13.39

10.67
1,000
pounds


759,858

196,941


4.41

1.00


10.29

.53
2.22

7.53
8.78
12.73



16.44

12.50

15.63

11.49
1,000
pounds


807,855

218,267


g/ Two weeks. b/ No quotation. c/ Dry salt cured and in
pickled, cared, and in process of cure, and frozen.


process of cure;


Tkl~ n~r ~l~~~rwr nrr~~ ~ nA~~ ~~~


- ----- -- ---


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