I always heard that the price of food goes up when gas prices go up

[Roon]

Gas prices are way down now. Why doesn't the price of food go down along with it?

[Deja Q]

1. Growing season's over...

The cost of gas, et al, during the skyrocketed period has to be factored into the food.

Now that gas prices are down, food prices should follow within 6~9 months - depending on produce or type of food.

[aquart]

2. Because the food you're buying now was made with the higher costs.

I've noticed fresh produce is coming down.

[CoffeeCat]

3. Food prices are "stickier."

When food prices go up, it takes a lot longer for the high prices to come back down.

Companies become accustomed to charging the higher prices and they're more reluctant to reduce
prices, just because the cost of some inputs go down.

Also, some large food conglomerates have "locked in" the prices they pay for grain and other
inputs. They have long-term contracts and agreements, so while transportation costs may
be decreasing--the prices that they pay for grain, meat, and other ingredients may not be
decreasing.

I'm no expert, but that is the very little that I understand about the nature of food prices.

[Jackpine Radical]

6. Oil has 4 vital functions in agriculture.

It forms the chemical bases for pesticides and fertilizers, it runs the farm equipment used to plant, tend and harvest the crops, and it fuels the delivery systems (trucks) that bring the food to you. Only the cost of the last-named of these, transportation, changes rapidly with the price of fuel. You're eating things planted, grown and harvested with high-priced oil. The farmers borrowed to pay for that expensive stuff, and need to pay off their loans, so they must charge high prices for their products.

[Roon]

17. That makes sense

thanks for your input! :-)

[Two Americas]

19. stability

There is stability in food prices, relatively speaking, and that is the product of regulation and is a good thing. Were it not for that, with the current economic meltdown, we would now be seeing farm closings and famine as we did in the 30's. Thankfully, a strong system of regulation and oversight was put into place through the New Deal that protects farming from the financial industry, and so protects us from famine.

It is shocking that people today in this country are struggling to buy food. That is a function of depressed wages, and gouging in other areas devastating people's budgets - overpriced housing and utilities, which have become privatized monopolies with insufficient oversight and regulation, health care and medication costs, to name a few.

Food prices have been volatile, but that is nothing when compared to the volatility of fuel prices, or else many of us would be getting very hungry by now.

[Tangerine LaBamba]

4. Tuna

This reminded me of something I noticed today at the market.

Tuna used to come in - as I recall it - 7-1/2 oz. cans.

Now, they're 5 ounces, and they're the same price.

It never ends. Food prices are just going to keep going up because we have no alternatives.

[dysfunctional press]

8. that's been happening to a lot of food products for quite ahile now...

for instance- just try finding an actual half-gallon carton of ice cream. :shrug:

[Tangerine LaBamba]

9. Ice cream, yes,

and coffee.

Candy bars, ha. They're a joke these days.

And I noticed that there's less tuna inside the can and more oil or water.

I said "Screw this," and went for the expensive, but really good, and fully-packed imported Italian tuna. It's so far superior to the stuff they're ripping us off for, I'll never go back.

[hendo]

13. hmm

i just bought a half gallon from the local dairy yesterday.

[dysfunctional press]

15. try buying it a supermarket...most national brands are 1.75 quarts, and some are even 1.5 quarts.

does the dairy make their own? what are the ranges of flavours they make/carry?

[hendo]

21. quite a few

choclate, Vanilla, mint chip, strawberry, cookies and cream, butter pecan, and a few seasonals.

I think there are more too, but i cant remember all of them right now.

[dysfunctional press]

22. no such luxury for us- and where we live once had the highest concentration of dairies in the u.s...

which is probably one reason why the soil is so good in our garden. i don't even know where the nearest working dairy in the area is anymore...:shrug:

[hendo]

23. elgin huh?

I used to live in Elmhurst 20 or so years ago. its kind of far away from you, but you should go to the Walter Peyton Steak House in Aurora sometime if you get the chance.

[Veritas_et_Aequitas]

5. Food prices move more slowly.

People can drive less, but they usually don't eat less.

[rucky]

7. I noticed bread's gone down.

and milk was down right after Thanksgiving, but it was all pretty short-dated, too.

maybe it's just because people don't shop for everyday stuff as much around the Holidays

[WHEN CRABS ROAR]

10. 6.3 billion people and growing.

[Roon]

11. Thanks for the responses, guys!

I was really wondering why food prices are still so high and your posts have given me some insight. I appreciate it!

[hendo]

12. most food is a commodity

and commodity prices are set on Wall Street. The prices through the spring have pretty much been locked in.

[davidthegnome]

14. Some have gone down

Or maybe lobster is an exception. I'm not sure about other States, but here in Maine the price has gone way down in my area. I'm not sure exactly how much it's gone down as my parents are the ones that buy it, but it's become more common at our house lately. To think they used to feed it to prisoners...

[crikkett]

16. Gas is down because shipping has all but stopped.

The cheap food used to come from overseas. Bookings of container ships are down something like 93%, last I heard.

[Roon]

18. My Mother works for APL

as an exporter/importer. I will ask her if bookings of containers are down. If anyone would know about what is up with the container business, it would be my Mother.

[Breeze54]

20. Because they can....

I asked the same question in a conversation with a fellow shopper, little old gray haired lady and her
husband and she laughed and said, "Yeah right! When have prices EVER come down once they go up?!"