University of Virginia Library

Contracts Canceled

The problems encountered by the University are not
unique, either. Since the controls have been announced, the
Commonwealth of Virginia's supplier of poultry, Rockingham
Poultry Co., has canceled all its food supply contracts with
the state because the prices established by the contracts are no
longer applicable. As the state's supplier, and the largest
poultry supplier in the state, other schools and other state

institutions could be affected.

The problems will not end, either on Sept. 12, when the
freeze on beef prices is lifted. Mr. Fontana said that beef prices
could skyrocket after Sept. 12, as much as 60-75 per cent.
Added to the already soaring prices of pork and other meats
and foodstuffs, the food outlook appears very unstable and
confusing.

In an attempt to keep abreast of the rapidly changing and
highly unpredictable food price situation, Mr. Fontana said
that Food Services would soon begin adjusting food prices
weekly in the cafeterias and snack bars. Under the President's
guidelines, Food Services is permitted to pass along to the
consumer the direct increase in cost of the product, except for
the case of beef, which will remain frozen until Sept. 12.

Thus, as food prices, especially meat, fluctuate, Food
Services will every week adjust the prices at the serv ng
counter to reflect the price oscillations. For example, Mr.
fontana explained that if bacon went up another 20 cents per