H.—44 A.

A fairly large proportion of bakers sell what is called " Vienna " bread, in addition to bread of standard weight. Vienna bread is sold in loaves varying in weight from 1 lb. 8 oz. to 1 lb. 12 oz., and where this class of bread forms an appreciable portion of the baker's trade it becomes difficult to apportion costs in relation to cost per standard loaf. Account must be taken of the fact that in all the accounts under review the sale of Vienna and other " short-weight " bread forms a varying proportion in the total-sales figures of the several bakers, and therefore the allocation of costs under various headings per standard loaf is not, on that account, strictly correct. The average selling-price of bread is affected by the fact that the baker receives standard prices for all bread, both full weight and what is termed " short-weight " bread. The total cost of flour and other ingredients is also spread over the total bread produced, both standard weight and Vienna and other short-weight bread which contain a greater percentage of " improvers." In previous investigations of the Department into bread-prices the percentage of short-weight bread was comparatively small, and consequently it was not difficult to arrive at the exact cost of a standard loaf. With the increase of many cereal foods on the market and the extensive advertising of manufacturers of these products, the baker has been forced through this increasing source of competition to offer a loaf which contains more palatable ingredients than those generally considered sufficient in the standard loaf. This competition has led to the introduction of Vienna, malt, and other varieties of bread containing " improvers " of various kinds. Wages and Conditions. (a) Bakehouse Employees—The wages and conditions of bakers have been determined by the Court of Arbitration under a Dominion award, which has been operating for the past three years. The award provides for wages at the following minimum rates : Foreman baker or pastrycook, £5 10s. per week : journeyman baker or pastrycook, £5 per week ; baker's labourers, £4 os. 6d. per week. (b) Motor and Horse Drivers.—The wages of drivers of motor and horse-drawn vehicles have also been the subject of a Dominion award under the Industrial Conciliation and Arbitration Act, the present award operating from the 10th January, 1927. The minimum rates of wages provided are (per week) : Drivers of one-horse vehicles, £4 Bs. ; drivers of two-horse vehicles, £4 lis. ; drivers of motor-vehicles not exceeding 2 tons, £4 lis. ; drivers of motor-vehicles exceeding 2 tons but not exceeding 4 tons, £4 13s. 6d. Flour-prices. (a) New Zealand. —The net prices of flour delivered to bakehouse in each main centre for the past three years is given as under : —

In some cases bakers doing a large business have been able to secure special discounts bringing the net cost below the figures shown in the above table. (b) Australian.—The sliding scale of Customs duty on flour regulates the price at which Australian flour can be landed in New Zealand. The price paid by bakers for the past eighteen months Las been from £18 to £18 15s. per ton. (c) Canadian.—The sliding scale of Customs duty also applies to flour imported from Canada. The price paid for Canadian flour has fluctuated between £19 and £19 18s. per ton. A number of bakers use Australian and Canadian in varying proportions. In the production of Vienna bread some bakers use as much as 50 per cent, of imported flour. In the standard loaf the percentage of imported flour used varies from 16 to 20. In many instances bakers use only the New Zealand product. Cost of Production and Delivery, and Margins op Profits. Attached to this report is Schedule A, which gives under various headings the cost of production and distribution of bread, obtained from representative bakers in each main centre of the Dominion. The total quantity of bread, expressed in standard 4 lb. loaves distributed by the bakers selected, represents 8,250,000 loaves per annum. In regard to figures of the Wellington bakers, due regard must be taken of the fact that the latest balance period available had to embrace the period of sth June, 1929, to 25th April, 1930. During this period price-cutting on the part of the larger-sized bakeries was in evidence, the price to stores being as low as lOd. net delivered, and cash over counter to consumers, Is.

2

Date. Dunedin. Christchurch. Wellington. Auckland. 1928. £ S. d. £ s. d. £ s. d. £ s. d. March . ■ • • • • 17 11 0 July .. .. .. 16 6 8 15 16 5 17 3 5 17 11 0 1929. July .. .. .. 16 6 8 15 16 5 17 3 5 17 11 0 1930. July .. .. .. 16 16 5 16 6 8 17 13 2 18 0 9