Why Bread Costs So Much

Discussion in 'Current Affairs, News and Analysis' started by bakerlite, Jan 13, 2011.

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  1. Everyone who remembers the story of Joseph and the Pharoah will know that there are good years and bad years for growing crops. In good years crops (foodstuffs/commodities) are abundant, there are surpluses, prices come down. In bad years they are scarce, prices go up.
    Historically, Commodity Traders bet on the outcomes. Then there was financial deregulation and commodity futures began to look attractive to the big players, the managers of hedge and pension funds. When property and other financial markets fell out of orbit, foodstuffs began to look really attractive.

    See link for full article and charts: BBC News - Q&A: Why food prices and fuel costs are going up

    Then listen to this article: BBC - BBC Radio 4 Programmes - Face the Facts, Feeding Frenzy
  2. I think the fuel price thing, which certainly is key ingredient to the price of foods like bread, won't go through the roof, certainly as far as we in the West are concerned anyway.

    But we've already seen the damage that can be wrought by rabid financial trading so I believe that
    letting the World's traders treat the food market as just another source of gambling chips will inevitably lead to proper trouble.

    With the fuel, the main suppliers, particularly the Arab countries, are not stupid and they see the correlation between the price of oil
    and the amount of cash that flows into the search for alternative energy sources and the increasing fuel efficiency of existing technologies.

    There is, I believe, a saying in the oil industry that 'The Stoneage didn't end because the World ran out of stone'. So they will
    be very careful not to trash their own market by diminishing it or encouraging the equivalent of a new Bronze Age.

    I think oil is still cheap, it's just the greedy ******* who keep piling tax onto it that make it expensive.
  3. Reminds me of the old Cold War when the most vital snippet of intel was what would be the Soviet grain harvest that year. Good harvest, sleep tight, indifferent, keep an eye on things, bad harvest, things could get spicy and if the harvest failed - here come the Fantasians
  4. I havnt really noticed that bread is particularly expensive.
    In fact, Morrisons have been selling wholemeal loaves for 50p almost constantly for the last few months. I dont recall the brand (Not own brand) but it tastes fine for my sandwiches.

    And anyway, are we not supposed to be in the middle of an "obesity crisis" in the "west". A bit less food might be good for the fat and idle workshy class.
  5. Saw a big ad trying to attract people to invest in foodstuffs on the tube this morning.
  6. It's far cheaper to eat unhealthly, any processed food is cheap for a reason. Think on.
  7. The agricultural futures market is the oldest market in the world (for a fuller explanation watch Trading Places). Agricultual produce, as a commodity, is in the hands of exactly the same people that buggered up the banks. Short memories have already blotted out the expotential rise in the these commodities in early 2008 (at the same time oil was $140 a barrel, $92 today). That was the warning shot in what will become the next bubble but unlike expensive houses (that were regarded as an unending provider of cheap equity based credit), people need food and with an ever expanding global population food and all other types of commodities will become the plaything of the markets. You only need to look to Africa to see how China, Saudi Arabia, etc. are buying up agricultural land and commodities at a frightening pace.
  8. So what is the single Mother with her four kids going to feed them?
  9. "It's far cheaper to eat unhealthly, any processed food is cheap for a reason. Think on."

    A myth invented to excuse the fat, idle and unemployed.

    I am as tight fisted as a Scots/yorkshire cross and deliberately minimise my food budget yet manage to eat a healthy, low fat and nutricious diet.
    Unhealthy food is not cheaper. For example, tube of pringles - almost £2, average loaf of good quality wholemeal multigrain bread - less than £2. In fact, sticking to bread, there is generally no significant price difference between white bread and wholemeal. Despite which, Chav mong single muvver of 6 is almost guaranteed to feed her illegitimate brood white bread.

    It is easier to eat crap (and easier for a bad parent to get her kids to eat it) though which explains why the long term unemployed are also likely to be fat. If you are too idle to get a job you are almost certain to be too idle to prepare fresh healthy food or spend the time and effort to convince your kids to eat it.
  10. $92 ???? no its not, it's about $98.50 and its going to keep going up
  11. ICE Brent Crude: $98.40
    NYMEX WTI Crude: $92.16
    ICE WTI Crude: $92.14

    But totally agree, this and all other commodities will continue to rise in price as we see economic recovery, reported today that the world is "short" 435,000 tonnes of copper, good buy?
  12. That's why Mum's go to Iceland! Cost of a plate of chips pence, cost of a plate of salad £'s for all the free range organic shite.
  13. Henry Kissinger once said "Control oil and you control nations; control food and you control the people."

    Are we still making "bio-fuel" from cereal crops?
  14. Llech,

    You dont have to go to the free-range, organic, extreme to eat well. You just need to make sensible choices. Contrary to popular belief, food at iceland is not particularly cost effective.

    I recon I can feed an adult human being healthy food sourced from a high street supermarket for £10 a week or less. It gets easier if there is more than one.

    My personal average spend on food per week is somewhere in the order of £40 (or less) for two adults and the most expensive items are usually the ones that are least healthy and least neccesary!