Incomplete picture, need prices on the transport of the wheat, processing it into flour for bread use, transporting the flour to the bakery, bakery electric to run ovens, labor to run ovens, machines (probably) that slice and bag the bread, and trucks/drivers to distribute it to retailers, and the retailer’s labor/overhead. All of that factors in the price from “wheat” to “bread,” sure nobody in that chain is selling for a loss and they all make profit, but even if everyone operated at cost it’s still going to be more expensive in “bread” state than “wheat” state for the simple fact that even if everyone “does it for cost” it will still add more to do more things to the product.
If he said “we sell wheat for 25p/kg and the store resells that same package of wheat for 1.40,” he may have a point. Even then the point is “sell directly to end users and cut out the middle man then.” Hell if buying weed has taught me one thing it’s that the more people touch it the more expensive it gets, always get as close as you can to the distributor and buy in bulk.
Here in Belgium we had a year where the electricity was 6x more expensive. They changed the bread prices from around €2.20 to around €2.80 because of that (no idea why). Now the electricity has its normal price again, but the breads are still the same price.
Cost of doing business goes up, price of goods goes up.
Cost of business goes down, price of goods stays up, profit margins increase. After all, if energy costs are down, everyone can afford to buy more, right? And then rent goes up because it can.
That’s more to his point then. He didn’t say that you need a full kilo, but that it’s enough. If a full kilo provides more loafs the ratio of what he earns and what consumers pay widens even more. I know that there’s a production chain that needs to be paid too but if he did account for the actual amount of wheat that a loaf uses, his argument would be even stronger.
Incomplete picture, need prices on the transport of the wheat, processing it into flour for bread use, transporting the flour to the bakery, bakery electric to run ovens, labor to run ovens, machines (probably) that slice and bag the bread, and trucks/drivers to distribute it to retailers, and the retailer’s labor/overhead. All of that factors in the price from “wheat” to “bread,” sure nobody in that chain is selling for a loss and they all make profit, but even if everyone operated at cost it’s still going to be more expensive in “bread” state than “wheat” state for the simple fact that even if everyone “does it for cost” it will still add more to do more things to the product.
If he said “we sell wheat for 25p/kg and the store resells that same package of wheat for 1.40,” he may have a point. Even then the point is “sell directly to end users and cut out the middle man then.” Hell if buying weed has taught me one thing it’s that the more people touch it the more expensive it gets, always get as close as you can to the distributor and buy in bulk.
There’s also water, oil, yeast and sugar required to make bread, their supply chains need to be paid as well.
You are completely correct.
But that doesn’t mean the price is always right.
Here in Belgium we had a year where the electricity was 6x more expensive. They changed the bread prices from around €2.20 to around €2.80 because of that (no idea why). Now the electricity has its normal price again, but the breads are still the same price.
Cost of doing business goes up, price of goods goes up.
Cost of business goes down, price of goods stays up, profit margins increase. After all, if energy costs are down, everyone can afford to buy more, right? And then rent goes up because it can.
This is the part of the whole thing that pisses me off the most. They’ll use anything to justify an increase but never ever bring it back down.
Everyone is poorer for it except the assholes can never get enough.
Dont forget the farmers are being subsidized by the government so they have little risk. But noone seems to take note of that.
Farmers will literally always vote to cut social security programs then turn around and bitch they aren’t getting enough government hand outs.
They’re idiots.
Proof positive that doing drugs prepares you for the world better than head-in-the-sand conservatism! Party on.
Add to that, who thinks it takes 1Kg of wheat to make a single loaf of bread?
That’s more to his point then. He didn’t say that you need a full kilo, but that it’s enough. If a full kilo provides more loafs the ratio of what he earns and what consumers pay widens even more. I know that there’s a production chain that needs to be paid too but if he did account for the actual amount of wheat that a loaf uses, his argument would be even stronger.
Weed is how yanks learn about the metric system