Might be stupid question, but why are food prices going up?

I don’t get it. Gas is like $1.97 in most places here in the Bay, and my grocery bill is going up every week? Huh?

Didn’t this industry get the memo that greed doesn’t work?:rolleyes: I’m tired of being taken advantage everywhere I turn, and I could understand when the gas prices were nearing $5…what’s the excuse now? :confused:

I have been seeing some items going down in price. Of course, I only buy things on sale

I agree, we are at $1.85 a gallon in Detroit and I was in the store yesterday and oh boy.

I think maybe the market might have a gap. Possibly they want to keep them up for a bit to see if the gas prices shoot out of control again.

Or maybe they think, oh boy gas is down they have extra to pay us?

Or they are trying to recover from losses from the gas prices.

I can’t figure it out…except to call it greed. It makes no sense. I buy some things on sale, but I buy some brand names at Publix here, because they have a 2 for 1 type deal…and nothing like that over this past weekend. I’m like…there are NO SALES? Gas prices have dropped over 50% and there are no sales on FOOD?

I’m tired of greed. It doesn’t work. It’s immoral for a reason! Someone needs to send Publix the memo. :smiley:

There are sales on EVERYTHING lately…at the mall, you can buy electronics, clothing, jewelry…you name it…for record low prices. Steals! It’s even a good time to buy a car, if you can get a loan. Why is FOOD UP!!!

Sorry, I don’t mean to yell. :blush:

I am working on an idea for blog entry kind of related to this type of Greed. I will be posting up in Social Justice probably tonight or tomorrow sometime.

Oh really? I’d like to read that. Thanks for telling me.:slight_smile:

The price we pay for gas vs. diesel fuel is still a big difference. I was out and about today (and since I prefer not to drive the highway when side streets will do) I passed a lot of gas stations and noticed how the price of diesel was still $1.00 more per gallon than “regular”. Much of what we have is transported by trucks that run on diesel as well as what someone else said, the market (not the grocery store per se) is playing catch-up now.

All I can say is I am happy that the cost to fill up both of our vehicles is now what it cost to fill up one! I try to drive as little as possible and to do as many errands at the same time as possible so I use less gas to get things done but this is not a new habit for me, it comes from way back in the 1970’s when I first learned to drive and we had a gas shortage - with long lines at gas stations and only being able to buy gas M-W-F if your license plate ended in an even number and T-Th-S if it ended in an odd number! DST was enacted as a year round thing Nationally etc.

Yeah, right? It cost me yesterday to fill up my car…$25!!! I almost fell over…I thought the pump was broken! :stuck_out_tongue:

I hadn’t thought of diesel. Ok, I forgot trucks use diesel. Ok. LOL
So this was a stupid question, afterall.:stuck_out_tongue:

But, many trucks deliver electronics, clothing, etc…and the prices are not as high as food.

The high cost of fuel and fertilizer over the last months are built into the prices, and it takes a good while for any favorable change to make a difference. I know that a lot of ranchers around here didn’t fertilize their fields, didn’t improve land, sold animals and reduced production because the price of producing grass and hay spiked due to fuel costs. Feed lots are “upstreaming” costs back to the farmers who have to produce larger animals, requiring greater resources. Some segments of the food industry are losing their backsides. If you want to see an example, go to CNN Business and look up “Pilgrim’s Pride”, the biggest poultry procesor in the U.S. It’s about to go under because of feed and fuel prices, and the recent downturn in those prices is probably too late to save the company, because they’re still selling their product at a loss.

But if Pilgrim’s Pride goes down, and its production gets permanently shuttered in, the poultry market will be totally dominated by Tyson Foods and Sanderson Farms, and then you’ll THINK price increases. Sanderson has already reduced production, and sometime in 2009, so will Tyson’s.

As with the cattle producers in my area, it takes a long time to get production back up once it has been reduced, particularly when some producers quit entirely.

Wait until 2009. Increased food prices will be a lot worse.

I put it in Moral Theology Instead:

Is Global Capitalism Promoted Greed?

A news article agrees with many of Ridgerunner’s points:

With key commodities down 50 percent or more from their midyear highs, economists project food inflation will continue to slow – but only so much.

“It’s certainly not going to go negative,” said Michael Swanson, the lead agricultural economist at Wells Fargo & Co. in Minneapolis.

Retail food pricing is complex, and it’s often impossible to predict how a change in commodity prices will show up on store shelves, said Bob Reynolds, an industry consultant based in Moraga.

But a few trends are clear.

High fuel and grain prices drove up costs for big food processors, and those companies convinced retailers – even Wal-Mart – to accept the biggest price increases for their products in years. Retailers are pushing back now that commodity prices are down.

“It’s a dance,” Reynolds said.

Spikes in food commodities also influence the crops farmers plant. Potato prices are up 40 percent this year, for instance, in part because many spud growers opted to plant wheat instead.


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