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.