Almonds are up $1.50 and buckwheat is up $1.10. I don't notice any food I eat dropping in price though. During times of low oil prices, shouldn't food prices have some drop even if it's minimal?
Food prices
- Thread starter rainforests1
- Start date
beancounter
The Fire That Burns Within
Not necessarily. There are a lot of people involved in the delivery and processing of food. And under normal circumstances, it could take a while for them all to adjust their prices to point where the consumer would notice a decrease.
In addition, a lot of businesses buy oil future contracts..so if they purchased a contract before the decrease, they would still be paying the pre-drop price.
I worked for an airline years ago. The flight operations manger once told me that you should be quick to raise prices when your costs go up, but slow to decrease them when they go down. (Obviously there are different business dynamics between an airline and a farmer, but the general principle still applies).
And finally, once prices go up, they tend to stay that way, simply because the business is benefiting from an increased margin when their costs go down. (because the commodity price has gone down). And generally, they won't decrease their prices unless they are in a price competitive market.
In addition, a lot of businesses buy oil future contracts..so if they purchased a contract before the decrease, they would still be paying the pre-drop price.
I worked for an airline years ago. The flight operations manger once told me that you should be quick to raise prices when your costs go up, but slow to decrease them when they go down. (Obviously there are different business dynamics between an airline and a farmer, but the general principle still applies).
And finally, once prices go up, they tend to stay that way, simply because the business is benefiting from an increased margin when their costs go down. (because the commodity price has gone down). And generally, they won't decrease their prices unless they are in a price competitive market.
Last edited:
ledboots
Peace
It really ticks me off that deisel prices are still way above the regular gasoline. It takes less processing, so why is it 1/3 higher or more in price?
beancounter
The Fire That Burns Within
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