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A lot of commodity inputs into food production are up way more than 8.5% (e.g., corn, wheat). And a lot of the farmers inputs (e.g., energy, fertilizer) are up
by HFguy 4y ago
A lot of commodity inputs into food production are up way more than 8.5% (e.g., corn, wheat). And a lot of the farmers inputs (e.g., energy, fertilizer) are up more than 8.5%.
The 8.5% is a weighted, blended average of a lot of things.
So it could be reasonable that if you were selling bread, that the price would need to go up more than 8.5%.
The question is whether their profit margins are up? I don't know.
- QuarterReptile 4y ago>The question is whether their profit margins are up? I don't know. I would naturally expect companies to hold larger profit margins when there is instability. Setting up a business with low profit margin in a volatile business environment would be like building a house on a concrete slab right next to a river that often overflows its banks.
- Ekaros 4y agoActually considering the price of wheat from price of bread even 10% increase probably isn't too much. But that doesn't mean there hasn't be similar cost increases in other parts of the chain from commercial bakeries to store and transport.