Food Prices

[jon1]

With the huge drop in the price of oil/fuel, you would think that would somehow be reflected in the cost of food too as the transportation of these goods is dependent on oil (for ships) and diesel for trucks.

 

But as with everything, you can not apply logic to that. I still see food prices as the same if not even gradually creeping up.

 

Maybe I am just being naive? Just pondering as i sip my coffee.......

[BrettGC]

Good luck with that....

[jon1]

Yeah I know, just random thoughts this morning :)

[BrettGC]

When the AUD passed the USD a few years back, we were all expecting some price drops here in Aust.. Silly us.

 

Now it's back to 2010 levels again, retailers (Gerry Harvey etc) are saying prices will rise... What a surprise lol.

 

Nice thought though Jon. 

[Jack Peterson]

Maybe I am just being naive? Just pondering as i sip my coffee.......

 

 

:hystery:  You Can afford Coffee,

You must be doing OK my Friend. 

 

Morning All

 

JP :tiphat:

[Call me bubba]

what food prices do you mean? local made? imported?

 

 items that are already here or on its way . will still have the higher transportation costs included

when the fuel cost has dropped and stays stable maybe You will see a real drop in the cost.

 

 like AIRFARES, the cost of fuel has dropped YET the FARES have stayed same, very little if any drop. why?

 of what i read, is to increase company profit and for the stockholders.

[jon1]

 

Maybe I am just being naive? Just pondering as i sip my coffee.......

 

 

:hystery:  You Can afford Coffee,

You must be doing OK my Friend. coffee.jpg

 

Morning All

 

JP :tiphat:

 

 

Yes I have some very good Baraco from Batangas. We bought it for 260p/kilo on our trip there a few months ago. So we bought 3 kilos (in my freezer) and I haven't gone thru half of it as we only make 2 cups per day. :) 

[jon1]

what food prices do you mean? local made? imported?

 

 items that are already here or on its way . will still have the higher transportation costs included

when the fuel cost has dropped and stays stable maybe You will see a real drop in the cost.

 

 like AIRFARES, the cost of fuel has dropped YET the FARES have stayed same, very little if any drop. why?

 of what i read, is to increase company profit and for the stockholders.

 

I was thinking local as most large companies and airlines by their fuel in bulk or contract prices for a timeframe (by the year). 

 

For example, during my Baguio visit we bought fresh brocolli for 50p/kilo. Now by the time that makes it's way into the market here in Subic it is over 200p+/kilo. If fuel was a major cost in the markup it could mean a significant drop (maybe 25%) in the cost of the product. But I understand and know that the prices will rarely go down and if they do they will go back up shortly.

 

I see this never end of cycling up every year. Food Prices (shrimp, pork, etc.) go up by 20% in December when the OFWs/Money starts to pour in and stay up until late January (after the OFWs go back to work). The prices then gradually dip to about 5% above what they were in November the previous year. Then come December it starts over again. This sometimes makes me wonder what I will be able to afford when the gap in my future fixed pension closes? 

[Dave Hounddriver]

The ironic thing is, the Philippine peso is strong at the moment, which seems to mean the prices of all food items (and other items) go up.  Yet the exchange rate most of us are getting has gone down.  Double danger.

Edited February 8, 2015 by Dave Hounddriver

[Mike J]

The transportation cost of food that is based on the cost of fuel is actually fairly small.  I worked as a programmer for the trucking industry for 30 years.  Part of my job included extensive data analysis of costs.  Consider the following example; 48,000 shipment of food moving 500 miles, average MPG of 6.0 miles per gallon, with cost of fuel at $3.50 versus cost of fuel at $4.50

 

500/6*3.50/48000 = .00607 fuel cost per pound of food 

500/6*4.50/48000 = .00781 

 

The difference in fuel on a per pound basis for that 500 mile shipment is .00174, less than 2/10 of one cent per pound.  The "trickle down" to the consumer for trucking is almost non-existent.  That small decrease is more than eaten up by the increase in labor, road taxes, health plans for employees, etc.  Where you could possibly see a small difference is in agriculture crops that require extensive use of petroleum based fertilizer and diesel powered farm equipment to plant and harvest the crops.  Even there I expect the grower would try to maintain prices as long as possible.