The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-09
(Official City, State and County
Newspaper)
Foreign Representatives
SMALL, SPENCER, BREWER
Uncorporated
CHICAGO NEW YORK BOSTOr
Livestock Prices

Livestock Prices
In comments on the efficiency Of
the modern packing plant. one often
hears the remark that they sell
everything but the squeal, meaning
thereby that the by-products form a
considerable source Of revenue for the
packer.
Based on this theory, the livestock
producer should hope piously that the
market for squeals goes up, for the
packers claim that lack Of market for
livestock by-products has considerable
to do with the prevailing low prices
for animals on the hoof.
The history of the packing industry
shows that in 1885 Cincinnati firm
offered to pay a small sum for the
privilege Of slaughtering hogs. Its
profit came from the by-products
heretofore considered unusable.
In 1850 it was something of Sem
sation when Chicago packers an
nounced they were utilizing every part
of the animal except its blood. Later
uses were found for this and, in ac-
tual fact, there was no part Of the
animal carcass or any product of the
slaughterhouse which was unused.
Only the squeal lacked commercial
value.
AS refrigeration and scientific meth
ods came into the packing industry,
most Of the profits began to come
from the .by-products and finally
packers wholesaled fresh meats at
less than the prices paid for the live
animals because the by-products were
worth more than the cost of slaugh-
tering and dressing.
The current drop in commodity
prices. however, has been particularly
noticeable in the by-products Of the
packing industry and the result has
been a further decrease in the prices
paid for livestock.
Like all other industries. the pack
ing plants have been given thor
ough overhauling as to management
and some economies have been made.
These, however, have not been suffi-
cient to take up the slack and the
cost Of processing now represents
much larger percentage Of the live
stock dollar than ever before, for the
simple reason that livestock dollars
are fewer.
Commenting on the manner in
which this situation affects the con-
sumner, q recent statement by Armour
and Company said:
In the case Of cattle, the by-prod-
uct value, during "a months, has fall
en- from $17.20 per head to $3.50; the
by-product value per head of sheep
has fallen from $3.50 to $1.02; while
the by-product value per head of hogs
has fallen from 66 cents to IS cents.
Even with this steady downward
trend. various by-products, such as
glands for pharmaceutical purposes
and some edible products like liver,
have held their prices fairly we'll,
while others have tumbled downward
to where they have little or no value
before processing: for example, such
products as beef castings, blood, and
tankage.
with all classes of livestock the
edible by-product prices have been
much better sustained than the in
edible by-product prices. OF the many
by-products from cattle, hides and
oleo make up approximately 1oh per
cent Of the live weight, while they
represent about 80 per cent Of the to-
tai value, exclusive of the carcass. In
the case Of sheep tunsheared lamhs)
the pelts weigh approximately 10 per
cent Of the total live weight, and rep
resent about IS per cent Of the total
by-product vadue: Their importance
IN Affecting relations between prices
OF live animxls 4hd dressed carcasses,
when they represent such . large per-
centage Of the original investment
becomes Immediately apparent. The
drop in by-product prices has been
macn areAssr than the drop In meal
prices, With the result that the packer
has been unable to pay his operating
costs from his credits for by-products
and IN many cases has had to recover
his entire purchase price for his live.
stock from the carcass"
Vanishing Sails
Eighteen big sailing ships are nov
driving up from Australia toward Eng.
ID