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Cyrano Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 11:26 AM
Original message
Are the large food manufacturers screwing us?
When gas shot up to $4.00 a gallon, the price of food went through the roof. This was justified as virtually everything in the country moves by truck. Food companies, as well as everyone else, had to raise their prices to remain solvent.

But now that we're paying $2.00 a gallon, the price of food has not only remained where it was at it's peak, but has actually increased by a few percent. I don't have a link for this, but I go shopping every week and I know the prices of the things I buy. I know what I paid before gas shot up, I know what I paid when gas was at its peak, and I know what I'm paying now.

And the conclusion I've reached is that we're being screwed. I've spoken with supermarket managers about this and they too are pissed off. Two of them told me that their chains are actually fighting with the manufacturers to lower their prices. They claim that on many items, they are losing business to CosCo and Walmart.

They advised me to buy the store brand whenever possible as it's always cheaper than the name brands. And they weren't too subtle about suggesting that the major manufacturers were gouging us.

While many of us were able to carpool or cut down on our driving to alleviate the price of gas, we can't give up eating, brushing our teeth, or using toilet paper. I'm cutting every corner I can, but no matter what I do, I can't get out of the supermarket for under $100 every week. And all I'm buying is the basics.

I guess I've come to the conclusion that the world is made up of fuckors and fuckees. And no matter what we do, we are always going to be the fuckees. Any suggestions (short of revolution) to change this?
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havocmom Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 11:31 AM
Response to Original message
1. Yep. The gas costs reason is food industry's 9-11 beard
Prices to farmers for product seems to have dropped, and most are still struggling to recover from the diesel prices (which have not come down as fast as gas prices) Takes a lot of diesel to get food grown, but the family corporate farmers aren't seeing prices going up for their product.

Have come to the conclusion that ALL of what has gone on has been a (neo)con job for the corporations. Driving the independents out of just about all industries. Gonna be even easier to fleece the consumer.
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Andy823 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:03 PM
Response to Reply #1
3. In my area
Diesel last year was up to $5.00 a gallon at the pump, and for farms it was about $4.60 or so without the state tax. Now it is down to between $2.00 and $2.35, depending on the station you buy it at, and farmers are paying around 35 cents less per gallon. I also heard that for the first time in years diesel will could even be lower than gas this year!

Big corporations are screwing the public big time, and they will continue to do so as long as they can. I buy store brands most of the time, and I grow my own vegetables each year, and I am increasing my garden size this year to allow for more vegetables I can put up next fall to help make it through the winter when produce prices are higher. I also buy at the local farmers market for things I don't grow myself, and buy my meat from a local meat cutter that gets his beef from local farms.

I
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havocmom Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 10:12 PM
Response to Reply #3
18. still pushing $2.95 here, where grain and cattle are grown
The combiners don't even want to come here to harvest wheat anymore. Can't make profit. More producers are having to buy equipment and harvest themselves, when they have other things to get done, like calves to market and getting hay in to see the cows through winter.

I really thing international corporate mega farming inc. just about has the independents on the ropes.

If we thought Exxon in control of our gas tank was bad, wait til Mega Corporate Farm has control of our bellies.

Buying locally helps but it is harder for those producers to stay in business. We are gonna be screwed big time soon.

Soylent anyone?
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Mojorabbit Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 11:48 AM
Response to Original message
2. My BIL
works for a food distribution company, They bought wheat when it was high during the shortage and have to go through that inventory before buying cheaper. That may be part of the problem. They had already been eating increased costs when grain was so high till they could no longer do so and remain in business.
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Cyrano Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:04 PM
Response to Reply #2
5. And this has what to do with the cost of toothpaste and toilet paper?
Edited on Mon Mar-16-09 12:09 PM by Cyrano
Not to mention $2.85/lb tomatoes, $3.80 for a half gallon of orange juice, and $1.80/lb grapes? But let's talk about wheat products. I fail to understand why I'm paying $3.79 for a box of Fiber One cereal.

How can anyone who walks into a supermarket not realize the incredible degree to which we are being screwed.

I guess it's going to take four block food lines like they used to have in Moscow before most people start looking around for pitchforks and torches.

(On edit: Sorry for my anger Mojorabbit. It's not directed at you. It's directed at the injustices which surround us all and which we are virtually helpless to fight against.)
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Mojorabbit Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:53 PM
Response to Reply #5
13. Oh I agree
I have greatly expanded my garden and fruit trees and berry bushes. I just can't make myself pay the prices they want.I was just letting you all know that a lot of companies contracted for grain at high prices and have to pay them.
The markup at the grocery store is amazing for everything these days.
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JHB Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:04 PM
Response to Original message
4. Of Couuuuuuuuurse!
/Cenk impression
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handmade34 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:06 PM
Response to Original message
6. Co-ops,
boycott, rethink what we use and how we use it. We have let ourselves become dependent on large corporations and their services/products. We can't quit eating, brushing our teeth, or using toilet paper but we can rethink how we do those things.
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Cyrano Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:15 PM
Response to Reply #6
7. Rethink it, yes. But in a practical sense, change like this would take a decade of more.
However, that doesn't mean we shouldn't start moving in that direction. The biggest challenge would be in convincing the majority of the populace that that's the way to go.
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handmade34 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:26 PM
Response to Reply #7
9. power in numbers..
You are right. I am always in awe of the power of 'we the people' when we have a good idea and organize. There is so much change we could do if we decide and do it. I just bought 5 acres to get a small vegetable/fruit business going but don't know where to find people to help. I have made my own food, clothes, furniture, lip balm, shampoo, toothpaste, etc, etc,...

saw this quote in a Small Farmer's Journal years ago: "The problem with this beloved country of ours is that our neccesities have become too luxurious and our luxuries too neccesary." added to that our dependency on large corporations and we are in trouble.
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Frustratedlady Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:25 PM
Response to Original message
8. It's not just the prices increasing, check the sizes
Half gallon of ice cream is now 1.75 qts. Check out the Cheerio box and see how narrow it is. Soup cans are another good example of cutting down on size, but not on price.

Watch the sizes. You'll be shocked at how many are cutting down sizes, hoping no one notices.
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Cyrano Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:47 PM
Response to Reply #8
12. Yep, this is definitely one of their more despicable tactics.
Edited on Mon Mar-16-09 12:52 PM by Cyrano
Cans and boxes become smaller, but the price remain the same, or might even go up.

In the old days, those stealing from you used a mask and a gun. People actually knew it was a holdup.

It's my guess that today, the majority of people are clueless that they're being robbed every time they pay the same (or more) for less.
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killbotfactory Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:35 PM
Response to Original message
10. It's their job to get as much money out of us as they can, for as little as possible
What are people going to do, stop eating?
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Ron Green Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:35 PM
Response to Original message
11. Just like oil, food has been artificially cheap for years
mostly because it's made from corn, soy and petroleum subsidized by the government as family farms and sustainable farming have been killed off. In the bargain, American eaters have become addicted to factory meat and high-fructose corn syrup, so I don't see the change coming anytime soon.
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Auggie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:58 PM
Response to Reply #11
14. Spot on
A lot of consumer goods are artificially cheap too because they're made overseas with cheap labor.
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TheWraith Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 12:58 PM
Response to Original message
15. Some of it is that, some is continued speculation.
The same guys who spiked the price of oil also took their profits from that and started "investing" in other things like rice, wheat, steel, wood pulp... anything which is used day to day either is a "commodity" and can be speculated on the way oil was, or is used to make something that we use every day.
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dflprincess Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 01:11 PM
Response to Original message
16. Are large corporations screwing us?
This is a rhetorical question, right?
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Raineyb Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-16-09 01:14 PM
Response to Original message
17. Have they ever NOT screwed us? n/t
:shrug:

Regards
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