U.S. Grocery Price War

[errolanderson]

Huge deflationary pressures in U.S. groceries right now.

80 cents for a dozen eggs . . . .
40% decline in some beef cuts . . .

http://www.bloomberg.com/news/articles/2016-09-27/eight-cent-eggs-consumers-gobble-cheap-food-as-grocers-squirm

[tweety]

Very soon its Ag's turn to hurt, isn't it Errol?

[errolanderson]

Tweety . . . all sectors are slowing down, not just ag.

Believe this is the result of the U.S. economy heading into recession and an ongoing meat glut.

[bucket]

The market is always right.....

[sumdumguy]

Trump is going to change all that - by not paying any taxes. They will have to drive on cow trails to get the 80 cent eggs and $1/gal milk.

[bucket]

We are already on cow trails and goat paths and food is still expensive.

[biglentil]

War with Russia will light a fire under the economy literally.

[bucket]

Clinton wants to go to war with Russia...probably to find her emails ...not sure it's on Trumps agenda.

[monte]

How is that possible?
Can the grocers buy eggs that cheaply?
Are they using as a lost leader to get people in the stores?

What is the farmer's cost of production on a dozen eggs?

I doubt the consumer demand is that price sensitive, I can only eat so many eggs and I already thought they were cheap and a good deal.

[Guest]

How is that possible?
Can the grocers buy eggs that cheaply?b
Are they using as a lost leader to get people in the stores?

What is the farmer's cost of production on a dozen eggs?

I doubt the consumer demand is that price sensitive, I can only eat so many eggs and I already thought they were cheap and a good deal.

I dunno , what's the cost of production of feed barley , 15 bpa canola , wheat ??? don't think it matters

[WiltonRanch]

Grocery stores squeeze the supplier and it ripples back to the primary producer. My uncle has been in the grocery business since he was a kid. He tells me that in Canada anyway there are only a handful of grocery suppliers. They can dictate to the packers and wholesalers what they'll pay. The independent grocers get short stick because the big chains can use their lost leaders more frequent than what the little guy can. The big profits are made on the dry goods on your way back to the perishables on the back wall.

[ajl]

Deflation=friend to the poor. The rich need inflation that is why it is sooo important that the government manufacture inflation. Deflation bring it on. Canadian real estate will not be such a good investment but the Chinese own all that anyways.