Comment Farmer getting smaller slice of the shelf price (Score 2) 96
I get the impression that the price of bread on the shelf is loosely coupled to the price of wheat at the grain elevator. A lot of work needs to be done along with wages paid and fuel purchased to mill the grain, bake the bread, stock the shelf and sell it to the customer.
It appears that the price of food rises and falls (yes, some food prices have come down from their peaks) with the price of #2 diesel fuel.
It used to be that staples such as bread, rice, pasta and potatoes were cheap in relation to meat, butter, eggs and milk. Meat, especially beef has gotten really expensive, but it is not too hard these days to pay 4 dollars (US) or more for a loaf of bread, especially if you want a whole-wheat or multi-grain product.
Before we blame corporate greed, the entire supply chain has faced increased costs in all of the inputs to put food on a store shelf. Labor and energy costs of food distribution and retailing have to be recovered from consumer spending some way, some how, and there is a lot of "overhead" expenses that need to be apportioned between the items stores sell. "Poverty food" items such as rice, dry beans and peas, lentils and so on are not that cheap, in relative terms as they once were, suggesting more assignment of general store overhead in their price.
To use a car analogy, when you take out a loan to pay $50,000 for a new automobile, a large fraction of that is going towards the health care benefit car companies provide their workers.