Why are grocery prices so high?

ThriftoRama · #1 (**permalink**) 04-14-2008, 12:53 PM

Businessweek has an interesting article addressing grocery inflation. I thought I'd post it because that's been a hot topic on the boards.

Squeezed by Rising Food Costs

Spud · #2 (**permalink**) 04-14-2008, 03:23 PM

The other thing that is happening is that because soy, wheat, etc. are traded internationally, and the US dollar is weak, our dollars don't go as far buying those commodities as it used to.

responduser · #3 (**permalink**) 04-15-2008, 05:54 AM

Quote:

Originally Posted by Spud

The other thing that is happening is that because soy, wheat, etc. are traded internationally, and the US dollar is weak, our dollars don't go as far buying those commodities as it used to.

This may be the reason!

But what is the reason behind the hike in other groceries?

mom-from-missouri · #4 (**permalink**) 04-15-2008, 07:43 AM

Fuel prices!!
Farmers use diesel fuel. Truckers use diesel. It is now over $4 a gallon.

For crops, you pay for the fuel to get the seed, plow, disc or till, fertalize, and harvest. Then you pay for the fuel to take it to market-which is either the nearest coop, mill or if produce a buyer warehouse, or if you are a smaller farmer, to each individual store you sell to.

Once it is at the warehouse or coop or mill, then then it is trucked to a refining plant, then to a packager, then to another warehouse and finally to a store.

At the end, you pay for the raise in fuel when you buy the groceries.

And, the fuel is still going up. 2 years ago we were paying $1.87 a gallon for the tractors. This morning, the coop sign was reading $4.11 a gallon.

The stores, mills, coops, warehouses and farmers are not making that money. The truck drivers are not making that extra money.

The fuel companies ARE. I think everyone should write to the fuel companies and complain how milk is now over $5 a gallon and how high everthing is. Maybe if they go several billion letters they would think about it.

I am looking for postal rates to go up next.

Thanks for letting this farm wife vent!!

responduser · #5 (**permalink**) 04-16-2008, 03:10 AM

Quote:

I am looking for postal rates to go up next.

I don't think that it will go up.

FrugalFish · #6 (**permalink**) 04-16-2008, 07:21 AM

Quote:

Originally Posted by responduser

Quote:

Originally Posted by mom-from-missouri

I am looking for postal rates to go up next.

I don't think that it will go up.

First class postage is going up a penny on May 12, I believe. Along with other changes in the postal system.

LuxLiving · #7 (**permalink**) 04-16-2008, 07:50 AM

Time to invest in some of those forever stamps?

And, mom-from-missouri, didn't I read that out of a $45ish basket of groceries the farmer is getting $9 or less these days??

FrugalFish · #8 (**permalink**) 04-19-2008, 07:37 AM

Quote:

Originally Posted by LuxLiving

Time to invest in some of those forever stamps?

Yep, now would be a good time to buy a stack

When I was in at our local postal annex a few weeks back, I asked the clerk if she had people who came in and stocked up on those. She nodded very solemnly and said there are some people who have purchased huge quantities of them. I don't know why it surprised me that there were some people who would try to buy enough to last the rest of their lives, but I don't send all that much through the mail, so it's not an issue for me.