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you know the prices won't stay up
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martin
Posted 3/3/2007 09:38 (#114066 - in reply to #110916)
Subject: RE: How much is food going up and why?


"What % of the cost of a can of corn is due to the corn? How about fresh sweet corn? When you are selling something 4 or 5 times the market price the market going up does not affect it much. How about a loaf of bread, how much will it go up?"

Working closely with dairy farmers, I think I can give you 3 principles that I see at work, with regards to milk prices. I suspect the same 3 principles work with bread, sweet corn, ........

1) when milk is in short supply and the price paid to the farmer goes up, the retail price in the store goes up.
2) when milk becomes abundant and the price paid to the farmer drops, the retail price in the store does not drop.
3) when the retail price drops, the price paid to the farmer really drops.

Not trying to be a pissamist, but it seems like these principles hold true.


Edited by martin 3/3/2007 09:40
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