Why the prices of food items in almost most parts of the world are increasing very rapidly than...
the increase in income of masses. Is it really because of increase in consumption pattern or is it because of increase in hunger for money of traders and business community?
Rabbid capitalism. The rules of supply and demand are being manipulated in this example. Shorten the supply to increase the demand. A tactic to increase profits. Why else do you think Monsanto has worked so hard to patent all of the food we eat via genetic modification?
I can not say why. Strange as it is in any case. Especially in the context that there is more food than needed.
Maybe there's a logical explanation. I do not know it.
Most likely it is due to the demand for crude oil which drives the price of diesel fuel, the primary fuel of the transportation industry, upward. That increase is passed along to the retailer in the form of higher transportation costs which in turn is applied to the food stock inventories on the shelf for recovery from the consumer. WB
For the third world countries, I think it has mainly to do with them selling their crops for cash - to raise hard currencies (specifically the dollar or Euro). This has been a major source of contention in the third world for many decades. Today over 12% of American food is imported.
It's all supply and demand. The world's population is out of control and will increase by another 50% by 2050.
Developing countries develop and want more goods and demand more pay.
The cost of transportation is growing much faster than the cost of other services so getting goods to market gets ever higher.
Unionized employees make 2-5 times more than the majority of workers and ad a huge cost to goods and services. They win, you lose.
Increased costs, especially in transportation. Also, food has been really cheap for years. We are spoiled to think that we can spend 10% or so of our budget on food and have lots left over for entertainment. I think it's coming home now as prices rise and necessities are becoming more expensive we just have to learn to live more frugally like our grandparents did.
Inflation is beginning to raise its ugly head. Despite what the govenment has said, we have almost doubled the money supply in the last three years and with that extra money chasing the same goods, you have inflation. In this case food inflation has been running about 33% per year for the last 3 years running.
This is seemingly a very complex question, with many factors in play.
We could address the cost of seed, planting, fertilizing the crop, watering, weeding, tending, hoeing, raking, harvesting the crop. All of which incur costs and labor.
In short, it really is this simple.
You HAVE to eat. YOU are relying on others to supply you with food.
Either you grow your own, or you pay those who grow, harvest, wash,package and transport. Then you pay those who order, house, refrigerate, and shelve.
Far too many, rely on others to supply their needs. It really is this simple. Do it yourself, and cut costs.
If I can produce for myself, water, electicity, heat, cooling, medicine, fuel, food, clothing, shelter..........I can eliminate the costs of so many others who charge me for the service.
What else are we doing with our time? Working to pay the provider?
Not knowing what country you are in, I can not speak with authority, but in my homeland, the USofA...
supply is NOT the question, there is MUCH food,
transportation and distribution are the problems, and the services that we pay for.
Don't forget about governments requiring a certain percentage of gasoline to contain ethanol made from corn. This requirement has caused corn to increase in price and corn is used for lots of food products.
by Aqeel Saeed 9 years ago
It fluctuate between $ 148 per barrel to $ 33 per barrel.
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I came across this today and its conflicting to what most people would think. What do you think?https://sphotos-b.xx.fbcdn.net/hphotos- … 1023_n.jpg
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