Packing Outlook

After much toil and tribulation, the packing industry has at length arrived at the haven of prosperity. In 1924 demand for packing products held up well, while the short corn crop made the supply of hogs coming to market small. This enabled the packers to get good prices and at the same time reduce inventories.

At present, according to Armour & Co., the packing outlook is excellent. With nation-wide prosperity, there is an active demand for packing products, especially those derived from hogs. The very large corn crop of this year also gives assurance of an ample hog supply.

The South American business conducted by Armour & Co. continues in unusually large volume. About 25% of the South American output of packing products is shipped by the local subsidiaries of the big Chicago firm, and consists almost entirely of beef destined for England and the continent. Armour & Co. consequently is now an international business, and its prosperity depends upon foreign as well as purely U. S. economic conditions.

Nevertheless, the company's business turnover is exceptionally rapid. Armour & Co. pays cash to farmers for their livestock and produce, and gets its money back from its 500,000 customers in about two weeks. On its huge gross business, estimated at $800,000,000 for the present year, credit losses are remarkably small.