I did a little more research on the Bakers and their attempt to drive down the price of wheat and grain.
Joe
From: The Federal Reserve Bank of Kansas City.
Report: What is Driving Food Inflation.
Exerpt from the report.
Farm commmmodities still fuel food price gains.
While marketing costs have increased over time, farm commodity prices have remained relatively stable. Thus, the farm commodity share of retail food prices has diminished. Still, farm commodities account for a substantial part of the retail food dollar, and the two continue to move in tandem.
In 2005, farm commodities accounted for 20 percent of retail food costs, down from 41 percent in the 1970s.
In other words, for every retail dollar spent on food, 20 cents goes toward farm commodities. This amount is less than half that of three decades ago.
The farm commodity share of the retail food dollar, however, varies by the type of food group. Commodities represent a larger percentage of retail costs for foods requiring less processing, packaging, or advertising. For example, in 2005, commodities represented about 45 percent of retail beef costs and about 25 percent of retail fruit and vegetable costs.
In contrast, commodities accounted for only 6 percent of retail cereal and bakery costs. Even within the cereal and bakery group, farm costs can vary dramatically with the level of processing. USDA reports that farmers receive 19 cents from every dollar spent on a bag of wheat flour, but only 5 cents from a dollar spent on a loaf of bread and just 4 cents from a dollar spent on a box of corn flakes.
<a href="http://www.kansascityfed.org/RegionalAffairs/MainStreet/MSE_0108.pdf"target="blank"> Click Here to read the whole report "What is Driving Food Inflation.</a>
Joe
From: The Federal Reserve Bank of Kansas City.
Report: What is Driving Food Inflation.
Exerpt from the report.
Farm commmmodities still fuel food price gains.
While marketing costs have increased over time, farm commodity prices have remained relatively stable. Thus, the farm commodity share of retail food prices has diminished. Still, farm commodities account for a substantial part of the retail food dollar, and the two continue to move in tandem.
In 2005, farm commodities accounted for 20 percent of retail food costs, down from 41 percent in the 1970s.
In other words, for every retail dollar spent on food, 20 cents goes toward farm commodities. This amount is less than half that of three decades ago.
The farm commodity share of the retail food dollar, however, varies by the type of food group. Commodities represent a larger percentage of retail costs for foods requiring less processing, packaging, or advertising. For example, in 2005, commodities represented about 45 percent of retail beef costs and about 25 percent of retail fruit and vegetable costs.
In contrast, commodities accounted for only 6 percent of retail cereal and bakery costs. Even within the cereal and bakery group, farm costs can vary dramatically with the level of processing. USDA reports that farmers receive 19 cents from every dollar spent on a bag of wheat flour, but only 5 cents from a dollar spent on a loaf of bread and just 4 cents from a dollar spent on a box of corn flakes.
<a href="http://www.kansascityfed.org/RegionalAffairs/MainStreet/MSE_0108.pdf"target="blank"> Click Here to read the whole report "What is Driving Food Inflation.</a>