Comments on: Farmers Feel Consumers Blame Them for High Food Costs http://www.dailyreckoning.com.au/farmers-high-food-costs/2008/05/02/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Coffee Addict http://www.dailyreckoning.com.au/farmers-high-food-costs/2008/05/02/comment-page-1/#comment-21305 Coffee Addict Mon, 05 May 2008 06:18:18 +0000 http://www.dailyreckoning.com.au/?p=2570#comment-21305 A cheap way to make your muesli or porridge may be to buy a few sacks of grain off the farmer and put them through an old fashion grain grister (a type of grinder). You can buy one at your neighbourhood antique shop. Seriously, as the cost of processed products skyrockets with inflation and the price of oil, practical home based alternatives will return in many different areas. Farmers markets are thriving in many regional areas and the prices farmers they are getting are in any case very good. Back to the future. A cheap way to make your muesli or porridge may be to buy a few sacks of grain off the farmer and put them through an old fashion grain grister (a type of grinder). You can buy one at your neighbourhood antique shop.

Seriously, as the cost of processed products skyrockets with inflation and the price of oil, practical home based alternatives will return in many different areas. Farmers markets are thriving in many regional areas and the prices farmers they are getting are in any case very good. Back to the future.

]]> By: karl http://www.dailyreckoning.com.au/farmers-high-food-costs/2008/05/02/comment-page-1/#comment-21270 karl Mon, 05 May 2008 01:28:31 +0000 http://www.dailyreckoning.com.au/?p=2570#comment-21270 Freak'd - the processes the cereal companies use to turn a kernel of corn into a cornflake is extensive and uses a fair amount of energy and labour. I think the energy and labour cost of producing a box of cornflakes would be added to the price of each box of cornflakes, plus a premium of course. The farmer gets his 50c for the kernels, the box manufacturer their 50c for the box, printers get their fees, etc.. all down the chain. Unfortunately in many cases the farmer looks at the price for his corn, then looks at the price for the box of cornflakes and feels they are getting a raw deal without understanding the processes involved, and the cost of those processes. Not many people would open up a 50c box of unprocessed corn kernels, pour some into a bowl, add milk and enjoy crunchy goodness.. although it may come to that in the near future.. You are right about water and elecricity though. Electricity companies started price gouging in the late 90's (My Parent's power bill: $30 electricity usage for a month, $80 for a mysterious "Access Fee" - they have solar hot water, gas stove, and 3 lights). And once desalination takes off, the sky's the limit for water prices. Freak'd - the processes the cereal companies use to turn a kernel of corn into a cornflake is extensive and uses a fair amount of energy and labour. I think the energy and labour cost of producing a box of cornflakes would be added to the price of each box of cornflakes, plus a premium of course.

The farmer gets his 50c for the kernels, the box manufacturer their 50c for the box, printers get their fees, etc.. all down the chain. Unfortunately in many cases the farmer looks at the price for his corn, then looks at the price for the box of cornflakes and feels they are getting a raw deal without understanding the processes involved, and the cost of those processes.

Not many people would open up a 50c box of unprocessed corn kernels, pour some into a bowl, add milk and enjoy crunchy goodness.. although it may come to that in the near future..

You are right about water and elecricity though. Electricity companies started price gouging in the late 90's (My Parent's power bill: $30 electricity usage for a month, $80 for a mysterious "Access Fee" - they have solar hot water, gas stove, and 3 lights). And once desalination takes off, the sky's the limit for water prices.

]]> By: Freak'd http://www.dailyreckoning.com.au/farmers-high-food-costs/2008/05/02/comment-page-1/#comment-20997 Freak'd Fri, 02 May 2008 06:52:40 +0000 http://www.dailyreckoning.com.au/?p=2570#comment-20997 Some years ago, I attended a weekend long booze-up at a mates parents farm in NSW Australia. Anyway my friends dad grew corn for a major American breakfast cereal maker, and we got talking about corn and such. He was contracted to sell the corn to that buyer for some figure that I can't remember anymore, but what I do remember is that at the time, in a $4 to $5 - 0.5kg box of corn flakes, there was less than 50 cents worth of corn in it! Given the cardboard that the box is made of is also pretty cheap, that must be some damn expensive ink on the box!! The corporate food chain from farm to you have us all by the balls and is a total rip-off. We pay what we will bear - which has minimal relation to cost. Water and electricity will be next...... Some years ago, I attended a weekend long booze-up at a mates parents farm in NSW Australia. Anyway my friends dad grew corn for a major American breakfast cereal maker, and we got talking about corn and such. He was contracted to sell the corn to that buyer for some figure that I can't remember anymore, but what I do remember is that at the time, in a $4 to $5 - 0.5kg box of corn flakes, there was less than 50 cents worth of corn in it! Given the cardboard that the box is made of is also pretty cheap, that must be some damn expensive ink on the box!!

The corporate food chain from farm to you have us all by the balls and is a total rip-off. We pay what we will bear - which has minimal relation to cost. Water and electricity will be next......

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