Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Raymond Duray who wrote (37593)	8/31/2003 3:50:22 AM
From: Maurice Winn	Read Replies (1) of 74559

<The same thing applies in wheat markets, where we find in the U.S. that a one pound loaf of bread, costing $2.89 in the supermarket contains $0.07 paid to the farmer for the wheat. This is a wacky and distorted market that no longer rewards those who make it all possible. > I think what that mainly shows is that the value of the modern downstream stuff far exceeds the eons-old value of territory. It also shows how efficient wheat production is these days. How unimportant land is. You won't find subsistence farmers with a sickle or scythe these days, threshing it by hand and delivering it to market in bushels, by horse and dray. I think those words would draw blank looks in most young people. Dray? Bushel? Sickle? Scythe? Threshing? Huh? I doubt that bread is a protected market. Surely anyone can buy wheat and go into the bread business. Judging by how many bread brands there are, I think so. I have been tempted to go into the bread business myself in the USA because the bread is so disgusting and expensive. It's loaded with sugar and is fluffy and revolting. But I suppose it's each to his own and Americans like it like that. I am amazed at how expensive it is. Same with 'cereals' which are not so much cereals as chocolate flavoured sugar bombs. There is a lot of money not going to the wheat grower. US$2.89 is just on NZ$5, which seems absurd for a loaf of bread. I can buy a cheap loaf for NZ$1 and supermarket brand for $1.50 and major brands for $2 and special luxuries such as Vogels for $3 [which we now don't buy as they are too expensive - they are super popular; a Kiwi tradition]http://www.woolworths.co.nz/homeshopping/shop.asp?sid=4GSXFJ83C27D9G3WAXDFH58WJSE5D951 Vogels and supermarket prices there The US$ looks from here as though it should be cut in half to get to about the "right" price, though it has been high for 3 decades, so I'm not holding my breath. Surely you don't think there should be a government loaf? They loaf around all day as it is, without putting them in charge of bread, which would be stale and even more expensive and disgusting, available at few places and in short supply Mqurice

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