Document Type
Book
Publication Date
1920
Abstract
For test purposes some packers figure the cost of the hog carcass or lot of hog carcasses in a manner somewhat similar to that by which dressed cost of beef is figured. This dressed cost is then compared with the market value of the various parts into which the carcasses are cut in order to determine the profit or loss at which the hogs are cutting out. Other packers prefer to compare the market value of all the various parts into which the hog is cut, including all killing and miscellaneous by-products, with the actual live cost of hogs in order to arrive at the profit or loss at which the hogs are cutting out. These tests are most important as they are the packers' guide in current transactions and aid him in formulating current buying and operating policies. The live hog market and the markets for the various pork products, while related, have no direct connections; nor have the markets for the various cuts or products any direct connection with each other. Loins may be in demand and selling well, while lard may be relatively low priced. Bacon may be selling at relatively high prices while there is small demand for shoulders, dry salt cuts, etc., and consequently these may be selling at relatively low prices. All of these various products have relatively independent markets which are subject to conditions of supply and demand and fluctuate accordingly. These markets as a whole over long periods must of course be in harmony with the live hog markets. The packer must attempt to so handle his transactions and operations between these fluctuating markets as to net him a reasonable profit.
Relational Format
book
Recommended Citation
Institute of American Meat Packers, "Tentative draft of proposed accounting instructions on the hog business: Part III" (1920). Publications of Accounting Associations, Societies, and Institutes. 25.
https://egrove.olemiss.edu/acct_inst/25