This depends Michael. You are right when you talk about highly
processed foods but quite wrong when talking about fresh foods like
meat, fruits and vegetables. The retail margins are considerably higher
on these items but that is because of the high cost of maintaining goods
freshness and their limited shelf life. also, transportation costs may
be higher because of the need for speed, particularly for more remote
locations. Fresh milk and bread prices in Canada's northern communities
can be extremely high, four or more times 'southern' prices due to the
cost of airfreight into these isolated communities. They are really
facing a food price crisis made worse by the failure of so many winter
roads due to global warming.
Paul Phillips
Michael Perelman wrote:
Yes, but production costs are a relatively small part of most food costs
compared to
profits, distribution, marketing ....
On Mon, Feb 18, 2008 at 11:48:38PM -0800, soula avramidis wrote:
isn't the rising cost of energy content of modern agriculture specifically
rising oil prices partly responsible for the rise in food prices?
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
--
Paul Phillips Professor Emertus, Economics University of Manitoba Home
and Office: 3806 - 36A st., Vernon BC, Canada. ViT 6E9 tel: 1 (250)
558-0830 email: [EMAIL PROTECTED]
