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This is One of Many Things Wrong with Our Country...


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Good lord, people.

Prices are going up. It's a fact of life

Since you chose the Fox route with me, let me respond in kind: Please take your socialist loving Obama crap to another thread.

And I didn't know you followed me down the aisle as I PURCHASED MILK FROM KROGER 3 YEARS AGO FOR THE CONSISTENT PRICE OF 89 TO 99 CENTS A GALLON!!

I agree.. this is a really dumb argument.... I really doubt your 99 cent price.... but I did work in a grocery store while in college and I know that we did sometimes sell milk, bread, coffee, sugar and few other items at a loss since people really look at those items when deciding where to shop... the theory was it brought people into the store and we made the profit on other things.

Two... We are in a serious drought now... I can water my yard two hours a week.... dairies depend on buying a lot of hay and other types of feed that takes water to grow.. .... and the cost of hay is insane now. That drives the price of beef and dairy products up. THINK...... and you might understand... no doubt milk is higher now but there are logical non-political reasons as you are implying is the cause since you bring up three years......[ why three years if not political? ]

Good grief... you went to college... THINK...

[ my family also raises cattle, I have a clue about what I am talking about ]

Edited by SCREAMING EAGLE-66
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It's called a loss leader - Stores, especially grocery stores, sell something so cheaply they make no money or even lose a little money. The purpose of the loss leader is to get you in the store with the hope being you'll buy other items with high margins while there.

But to say milk has risen from .90 to $3+ in three years would be incorrect. If anything that .90 milk was a loss leader and not the true price of the milk.

Dairy products are heavily subsidized by the feds and prices paid to producers are regulated to the point that a producer in Texas makes about the same as a producer in Wisconsin etc regardless of the cost to produce. That, according to the government, is one way to keep prices and supply reasonably steady and similar across the country.

Loss leader is the correct way of looking at this. I work in the food business, in sales, and I am heavily involved in daily market flucuations and these have dramatic effects on y life and my business. I would say that $.99 milk 3 years ago isn't far off from actual market price at that point in time. we saw similar prices a few times over the past few years while milk prices were skyrocketing. These were set by grocers underpricing their milk and placing it at the back of the store so that consumers would have to walk through the entire store before grabbing their milk. These prices were heavily advertised most of the time as well.

Retail sales of milk is heavily subsidized by the government to help ensure that dairy nutrition is available for all, this has helped limit the astronomical rise of milk costs for everyone else. There are several reasons for this increase in prices, some of these are;

drought - less water for the cows yields less milk

corn - corn is a major food for dairy cows and the price of corn has grown more that the price of milk over the past few years. This is mainly due to the government mandating ethanol be used in gasoline. Corn growers have been forced to sell parts of their crops to ethanol production, the resulting reduction in the corn crop has grown the price of the grain. This has dramatically increased the price of raising not only cattle but a huge percentage of our food producing animals, chickens, eggs, pork etc. all of which use corn as a major food source.

The easiest thing that we can do to help reduce the cost of food in this country is to immediately cease the mandated use of food (corn) as a way to artificially "extend" the functionality of petrochemical based fuels. When you track the recent spike in food costs it almost identically mirrors the cost of corn. Both spikes occur at the same time as the government's decision to put Thanksgiving in our gas tanks.

Do your own math

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.[ why three years if not political? ]

[ my family also raises cattle, I have a clue about what I am talking about ]

Well, 3 years because 3 years ago I PAID 89 TO 99 CENTS A GALLON FOR MILK CONSISTENLY, AND NOW I PAY ALMOST $3 EVERY TIME.

You went to college. What is so hard about that.

Also, your drought argument is CRAP. 2010 was one of the wettest years on record in Texas. Helll, even Lake Travis was full. Milk was already well over $1.50 by then.

Bur you are bound and determined to make this political. Why so sensitive?

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corn - corn is a major food for dairy cows and the price of corn has grown more that the price of milk over the past few years. This is mainly due to the government mandating ethanol be used in gasoline. Corn growers have been forced to sell parts of their crops to ethanol production, the resulting reduction in the corn crop has grown the price of the grain. This has dramatically increased the price of raising not only cattle but a huge percentage of our food producing animals, chickens, eggs, pork etc. all of which use corn as a major food source.

The easiest thing that we can do to help reduce the cost of food in this country is to immediately cease the mandated use of food (corn) as a way to artificially "extend" the functionality of petrochemical based fuels. When you track the recent spike in food costs it almost identically mirrors the cost of corn. Both spikes occur at the same time as the government's decision to put Thanksgiving in our gas tanks.

Do your own math

You FOX loving, neo-conservative!! I don't care if you make sense, you said a bad thing happened in the last 3 years, so you are a neo-con FOX lover!! Simple as that! ;)

Also, Don't let this crappy ethanol infused gas sit in your carborator for more than 2 months without running the engine. If you do, be prepared to have your carbs rebuilt. Trust me on this.

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Well, 3 years because 3 years ago I PAID 89 TO 99 CENTS A GALLON FOR MILK CONSISTENLY, AND NOW I PAY ALMOST $3 EVERY TIME.

You went to college. What is so hard about that.

Also, your drought argument is CRAP. 2010 was one of the wettest years on record in Texas. Helll, even Lake Travis was full. Milk was already well over $1.50 by then.

Bur you are bound and determined to make this political. Why so sensitive?

---What did you pay 4 years ago...??? .. 2 years ago.??? the posting above is right on.... part of the increased food prices are due to weather problems but a lot has to do with corn prices especially meat which is often fed corn prior to slaughter and of course corn inself plus many other agriculture products. Using corn as fuel has changed prices quite a bit..... and even beer.... huh.... ?? Farmers now raise more corn instead of other crops including grain etc. which goes into beer and other things including cereal.

So what was your point about the milk and the time.?? Maybe the cows are like OPEC in the 70's. Just raised the price because they thought they were selling it too cheap. .. hahaha..

Where I am in West Texas we had 1/4" rain total in 11 months in 2010- 2011.. ie. not one of the wetest... no way. My ranch-land (that I now lease out) is not that far north of Austin and near Colo. River that feeds Lake Travis ... stock tanks were nearly dry in 2010 and went dry in 2011.

..

Edited by SCREAMING EAGLE-66
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It's amazing how all of our food prices have increased by 200% or more yet inflation is at 2-3%. It's incredible how they can ignore everyday item in calculating that. Kinda like saying the unemployment rate went down because people quit looking for work.

Food prices are not included in the inflation index, I believe.

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