Interesting article, Alex, thanks.
A comment on the drought causing food prices to go up, though. The wholesale cost of farm production has little to do with consumer prices in the grocery store. I've read, for example, that the wheat in a loaf of bread amounts to less than one half of a cent of the cost of that loaf. Similarly, the grain in a box of breakfast cereal comprises less than 1/10 of 1% (0.1%) of the cost. In my area (West), pork costs lots more than beef, yet hog farmers are being driven out of business because of low prices. The point is, it is the intermediaries who are making the bucks, so if the drought is used as an excuse for price increases to the consumer, that's exactly what it will be, an excuse, not a reason.
Again, thanks for posting the article.
jim |
