Originally posted by: DrPizza
Originally posted by: techs
Cereal. How the heck can a box of cornflakes cost 4-5 dollars? The corn and ingredients don't cost 10 cents. The production, packaging and shipping can't cost more than a 25 cents.
It's insane that they charge 4-5 dollars for a box of cornflakes.
Tony the Tiger gets a really high salary. A box of store brand cornflakes is usually under $2. Production, packaging, shipping (and advertising) cost a lot more than you think.
Originally posted by: oddyager
Food in general. They attributed the soaring prices to the rise in fuel costs yet with fuel now at half at what it was, food prices stayed the same.
You think that during the last 6 weeks, they planted a crop of wheat, fertilized the crop of wheat, applied insecticides to the crop of wheat, harvested the wheat, produced flour from the wheat, produced cereal from the flour... all in 6 weeks? Transporting the product to the grocery store is just one part of the fuel required. Food takes a while to grow.
Grain prices have only recently begun to fall. It's going to take a while before that "works its way through the system." The beef you're eating today has been eating that expensive grain for 2 years. Just because grain prices are down 25% in the last 2 months, doesn't mean that it cost the rancher 25% less to produce his cattle over the last 2 years.