06-26-2008, 01:43 PM
More stuff on food prices.
Farmers have little to no input on the price they receive for their products.
In order to maintain profit margins, retailers and service companies can raise their prices when cost rise.
Farmers take market price, regardless of their cost of production. For example, corn price to farmer has been relatively level since the 60s, at least until last year. Imagine trying to make a profit on same return given the difference in cost of doing business over the last 50 years.
A local example from my banana farming days 1989 - 1999, wholesale price varied from .40 (good) - .30 (cost of production) depending on price of imports. Obviously my cost rose quite a bit over 11 years.
Farmers cause part of the problem as they tend to over produce. Government policies and consumers get the rest of the blame.
When polled most consumers everywhere will check, support local farmers. However, the real poll is at the grocery checkout, where they vote with their pocket books and buy the lower priced items, regardless of the producer.
The point here is to pass on information to why agriculture is not booming here in Hawaii or elsewhere.
It is a tough business, you do it because you love it.
Prices will rise given economic climate today, but we all should be very happy that when we go grocery shopping, food is abundant and we have choices.
Lot of places in the world, that's not the case.
Farmers have little to no input on the price they receive for their products.
In order to maintain profit margins, retailers and service companies can raise their prices when cost rise.
Farmers take market price, regardless of their cost of production. For example, corn price to farmer has been relatively level since the 60s, at least until last year. Imagine trying to make a profit on same return given the difference in cost of doing business over the last 50 years.
A local example from my banana farming days 1989 - 1999, wholesale price varied from .40 (good) - .30 (cost of production) depending on price of imports. Obviously my cost rose quite a bit over 11 years.
Farmers cause part of the problem as they tend to over produce. Government policies and consumers get the rest of the blame.
When polled most consumers everywhere will check, support local farmers. However, the real poll is at the grocery checkout, where they vote with their pocket books and buy the lower priced items, regardless of the producer.
The point here is to pass on information to why agriculture is not booming here in Hawaii or elsewhere.
It is a tough business, you do it because you love it.
Prices will rise given economic climate today, but we all should be very happy that when we go grocery shopping, food is abundant and we have choices.
Lot of places in the world, that's not the case.