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Honored Advisor

Where is the outrage?

Prices at the farm level are near the low point in what, 5 or 6 years for many commodities?  And yet food prices continue to rise.  Where is the outrage from the media and the general public?   I for one, am really sick of the farmers getting bad mouthed every time a box cereal or a loaf of bread goes up in price..... Especially with everyone that wants to bash the ethanol industry.

It's painfully obvious how disconnected from the real world the general consuming public is.

 

LOW PRICES FOR FARM COMMODITIES DOES NOT TRANSLATE INTO LOWER FOOD PRICES AT THE GROCERY STORE.

 

 

11 Replies
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Senior Contributor

Re: Where is the outrage?

The consuming public has problems of their own. Their paychecks are not rising proportionally to the cost of feeding their families.

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Advisor

We could solve our problem

Just like the groceery stores....by reducing package sizes....next time you deliver to ADM or Consolidated tell them that there are now 45 lbs. in a bushel of corn and 45 in a bushel of soybeans and to calculate your check accordingly.

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Senior Advisor

Re: Where is the outrage?

Yep, when grain prices went up, major food companies stated that as a reason for increases in prices of their products.  They did not mention how small a percentage the actual grain cost represented in their actual product, they did not mention that advertising, transportation, packaging, labor, etc., all represented larger percentages of their actual product cost.  And, they did not mention their record profits.

 

Bottom line -- major food companies pay big bucks for advertising space to get their 'spinned' message out to the consuming public, farmers typically do not, and farm groups do not adequately provide educational messages (primarily due to cost).  The media knows who butters their bread, where the bread and butter originate is of little concern.

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Senior Advisor

Re: Where is the outrage?

Should we push for a law that the percentage of rawmaterial cost be published along with the food price?  Smiley Happy

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Senior Advisor

Re: Where is the outrage?

Saw a funny thing on the News yesterday - They were saying - Don't worry about a shortage of turkeys for this Thanksgiving ! As this years birds were processed in March and flash frozen to zero - BUT expect to pay more for them because of the bird flu . I may be wrong here - But thought I heard there up on some birds 20 % So now my question here - Did they raise the price to give back to the bird farmers to help cover there earlier losses ? Boy isn't that nice of the grocerys to think about them farmers ?

 

As to what Jim posted up - back a few years ago - while shopping with my lovely bride at Krogers - I heard a lady haveing a great rant on the price of corn flakes - How it was the farmers fault and on and on - she would not give it up - As I pushed the cart by her - I stopped and agreeded with her on the price - But also told her there was only around a nickels worh of corn in it - no more than a dime , She looked at me as I was crazy - well thats another subject - but I told its easy to figure - theres 56 pounds in a bu. of corn - do the math , I added that we were also farmers - don't blame us ,she then asked then why is it so high ? Blame everybody but us , precessing , trucking , the stores have to make money to pay for labor and the cost of building the stores - you name it - she then smiled and said thanks . btw way - this was back when corn was high and she was listening to her only source - the TV

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Honored Advisor

Re: Where is the outrage?

I would like to see some advertising on TV by our large corporate farm suppliers setting the record straight on this subject.  You know....like ADM, the supermarket of the world.   And not just them I might add.    It would be in these corporations best interest to actually support the farms at the grassroots for a change.

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Senior Advisor

Re: Where is the outrage?

 

Here's an older report on cereal -- probably not much different today.

 

http://agecon2.tamu.edu/people/faculty/park-john/agec314/cereal1.pdf

 

"55% of the price of a box of cereal pays for marketing and profits. That is twice the

average of other foods."

 

 "The cereal industry does not behave like a competitive market and is not providing the best

value to consumers. Profits, which average twice the rate of all manufacturing industries,

and investments in massive advertising campaigns have increased prices to levels which

have little relationship to the costs of producing the product."

 

AND, from this later info -- http://blog.alextiller.com/BlogRetrieve.aspx?BlogID=2729&PostID=54385 --

 

"For every $1 spent on retail food grocery products in the US, the farm input value is only around $0.19.  In a $5 box of corn flakes, there is less than $0.10 worth of corn."

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Veteran Contributor

Re: Where is the outrage?

Monsanto MON.N expects to see corn seed prices increase by low single digits in local currencies for its corn seeds sold for the 2016 planting season, company president Brett Begemman said Tuesday. The pricing increase will be similar to the increase the company rolled out for the 2015 planting season, Begemman told reporters at the company's headquarters.  Monsanto has not yet issued pricing guidance for its soybean seeds for next year, Begemman said.

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Senior Contributor

Re: Where is the outrage?

With the price of steel, machinery should be cheaper, and the fuel price should make shipping alot cheaper but I don't look for them to happen either.

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