Tag: Food Prices

What Is The ‘Meat’ Of The Problem?

Has anyone bought a pound of ground beef lately?

If you have then you have noticed just how expensive even something as mundane as hamburger has become…..in my area that a pound of that cheap cut of meat is about $5 and it goes p from there.

There are plenty of cows for the industry then why is it so damn expensive?

Of course there are many reasons for the increases from food shortages for th animals to unjust pricing in the distribution….below is just none of the things that the government should be looking into….

A former grocery executive told a progressive media outlet in a video released Tuesday that “people fucking need to go to jail” over a long-running scheme in which dominant U.S. meat industry players have used information provided by a little-known data analytics company to increase prices and pad their bottom lines.

“This is probably one of the top five food scandals of the 21st Century, and we can’t underplay it,” said Errol Schweizer, the former vice president of Whole Foods’ grocery division. “People need to go to jail for this shit.”

Schweizer’s comments come at the start of a nine-minute video produced by More Perfect Union, which tells the story of how Indiana-based Agri Stats, the seemingly bland data firm, “built a network used by the nation’s largest meat companies,” including Tyson Foods, Hormel, and Cargill.

“Inside that network, America’s meat barons share secret data,” says More Perfect Union‘s Eric Gardner, the video’s narrator. “It’s alleged that Agri Stats organizes and then launders that information across the industry. Companies weaponize it, restricting output, manipulating the market, ultimately raising your prices.”

Watch the full video:

https://www.commondreams.org/news/meat-industry-price-gouging

The government, well the Senate, has proposed the Price Gouging Act of 2024…..

In response to the pervasive issue of skyrocketing prices on essential products, a group of US Senators, including Pennsylvania’s John Fetterman and Bob Casey, have taken a bold step by introducing the Price Gouging Act of 2024. This legislation, spearheaded by Senator Elizabeth Warren of Massachusetts, aims to curb the practice of charging customers grossly excessive prices, particularly during periods of exceptional market shock.

The proposed bill demands transparency from public companies, requiring them to disclose any changes in pricing and provide a clear rationale for such changes in their Securities and Exchange Commission (SEC) filings. Senator Fetterman emphasized the necessity of halting the exploitation of consumers, stating, “For too long, corporations have gotten away with jacking up prices to line their shareholders’ pockets with the hard-earned dollars of working Americans. This bill will put an end to that.”

One of the key focuses of the legislation is addressing the exploitation of crises, such as the ongoing pandemic, by certain corporations to bolster their profits unfairly. Moreover, provisions within the bill seek to safeguard small and local businesses that may be compelled to adjust prices in good faith.

US Senators Introduce Price Gouging Act of 2024 to Tackle Excessive Pricing

This is a valiant effort but I fear it has an uphill battle for success if that….At least they are trying to do something to help with these rising prices….but will it help?

Thoughts?

Let the weekend begin!

I Read, I Write, You Know

“lego ergo scribo”

What To Do About Food Prices

This subject is on anybody’s mind that has to eat….the risen food prices…..I recently explained just how much the prices have risen since the last election in 2020….

Food Prices Are Too Damn High

It has been predicted that if the government gets involved that it could have long ranging consequences…..but apparently Americans want relief not downer predictions.

A recent poll by a group called Data For Progress shows just how widespread the desire for the government to do something for a little relief….

69% of respondents — including a majority of Democrats and Republicans — said the government “should do more to regulate grocery stores that raise prices to maximize profits.”

The survey, conducted from May 10 to 11, sampled 1,168 likely voters from around the country and has a margin of error of 3 percentage points. A slightly larger share of respondents, 71%, said the government should “do more to regulate corporate food producers that raise prices to maximize profits.” This figure included a majority of Democrats and Republicans.

The survey, conducted from May 10 to 11, sampled 1,168 likely voters from around the country and has a margin of error of 3 percentage points. A slightly larger share of respondents, 71%, said the government should “do more to regulate corporate food producers that raise prices to maximize profits.” This figure included a majority of Democrats and Republicans.

Dems are getting involved by requesting the Biden use his pen to give some relief…..

Joe Biden encouraging the Biden-Harris administration to use its executive authority to take robust actions to lower food prices for families. In the letter, the lawmakers note how corporations have been raking in record profits while families are being hit with higher costs for groceries, and they outline several executive actions that the Biden administration should take.

“The federal government should use every possible tool to lower food prices,” wrote the lawmakers. “We believe you can exercise your executive authority to take additional action to address rising food prices without congressional action.”

Americans are facing sky-high food prices, caused by excessive price gouging by food and grocery giants. A small group of players dominate those industries: four grocery retailers account for over a third of national grocery sales and four food companies control more than 60 percent of sales in most grocery categories. As a result, consumers are spending more of their income on food than they have in the past 30 years.

In the letter, the lawmakers urge the administration to leverage the full scope of their executive authority and consider the following proposals:

  1. Encourage the Federal Trade Commission (FTC) and work with the U.S. Department of Agriculture (USDA) to prohibit exclusionary contracting by dominant firms in the food industry.
  2. Encourage the FTC to issue guidance on potential violations of the Robinson Patman Act and Section 5 of the FTC Act within the food industry, and investigate and take enforcement action where merited.
  3. Work with USDA to increase the number of government contract recipients that are very small businesses.
  4. Work with USDA to ensure that technical factors reflect the long-term costs of food sector consolidation.
  5. Urge the Department of Justice (DOJ) and the FTC to scrutinize, and where appropriate, block mergers and acquisitions in the food and agricultural sectors.
  6. Encourage the DOJ to prosecute actors in the agricultural and food sectors for price fixing and other anticompetitive behavior.
  7. Direct the CFTC and FTC to form a joint task force to investigate food price manipulation throughout the supply chain.

I say bully for them for wanting try and help out working families that are struggling while Congress fiddles.

Maybe look beyond Congress to other countries that are handling food prices….let’s begin with France.

France has set up a food pricing system that will sound foreign to American ears: Consumer goods companies like PepsiCo must negotiate with the country’s grocery stores on prices in the stores during a set period. If they can’t come to a compromise, PepsiCo won’t be able to get its products on the grocer’s shelves. The negotiations provide French consumers with a small but valuable piece of power, and President Emmanuel Macron has been trying to use the system to his advantage as he aggressively pushes to get the country’s high food prices down, saying they should reflect the fact that the prices of many raw materials have recently declined. 

https://www.vice.com/en/article/88×783/how-the-us-government-could-lower-food-prices-for-everyone

I know some will point to 1971….but people struggling do not care about 1971….all that is on their minds right now is some damn relief from the price gouging that food distributors and sales are enjoying with impunity.

Working families do not care what action by the president does to the markets….if they can afford to put food on the table then the president has done the proper thing.

Something needs doing….someone needs to step up….relief is much needed and will be appreciated.

I Read, I Write, You Know

“lego ergo scribo”

Food Prices Are Too Damn High

If you shop for groceries these days then you are already mumbling that mantra……prices started accelerating during the pandemic…..prices shot up and stayed up….

U.S. grocery prices jumped significantly after the federal government issued lockdown guidance in March 2020 in response to the global COVID-19 pandemic. 

Shutdowns across the globe, instituted to curb the spread of the virus, caused disruptions in shipping food from producers to manufacturing facilities to warehouses and supermarkets and restaurants.

Prices first began to surge in April 2020, but the biggest increases came in 2022, as inflation started to erupted and the Federal Reserve tightened monetary policy. These, plus a confluence of other factors, led to the biggest food-price increases in decades.

Here are the four biggest causes for the food prices to shoot higher.

https://www.thestreet.com/economy/why-are-groceries-so-expensive

I am old so I can step back in history and remember when a pound of sugar was 19 cents, a loaf of bread was about 25 cents, a head of cabbage was less than a quarter and a pound of hamburger was less than a dollar….but those memories are worthless these days just something to bitch about, right?

Okay let’s look at the prices….say since the last election in 2020…..

If you feel like your trips to the grocery store have been putting a bigger dent in your wallet lately, you’re not imagining things. Food prices in the United States have risen significantly over the past few years due to high inflation.

During the last federal election on Nov. 3, 2020, food inflation was running at just 3.9% annually. Fast forward to March 2024, and the latest data shows food prices have risen a whopping 25.8% since then. To put that in perspective, a basket of groceries that cost $100 in November 2020 would now set you back $125.80. That’s an increase of nearly $26 for the exact same food items.

The biggest price hikes have been for specific grocery categories like eggs, dairy products, cereals and baked goods. But price rises have impacted all food groups across the board.

The inflation data shows egg prices were among the worst hit, with the average price soaring 54% from November 2020 to March 2024. So if a dozen eggs cost you $2 at the election, that same dozen eggs would now average around $3.08.

Dairy products like milk, cheese and butter also saw major price hikes over the past 3.5 years. Milk increased 36%, with a $3 gallon now costing $4.08 on average. Cheese and butter prices jumped around 30% over that period.

The price of cereals and bakery products, like bread, rolls, crackers and cookies, wasn’t far behind — rising around 28% since November 2020. So a $4 box of cereal back then would now cost you about $5.12 on average.

The cost of meat, poultry, fish and eggs collectively rose 23.5% since the last election. Beef prices were up around 20%, with chicken increasing over 25%. So $5 worth of ground beef in 2020 would now average $6.

For fresh fruits and vegetables, the price hike averaged around 21% over that 3.5 year period — a $3 pound of apples in November 2020 would now typically cost you $3.63.

hile overall food inflation started gradually pulling back after that August 2022 peak, prices have remained stubbornly high for most grocery categories compared to pre-COVID-19-pandemic levels.

So while the latest 2.2% annual food inflation rate for March 2024 seems more manageable, it doesn’t negate the cumulative 25.8% increase in grocery prices since that November 2020 election. And it remains to be seen if that downward trend in food inflation will continue in the coming months.

That is just since the last election, 2020, and now the grapevine has been setting the consumer up for higher meat prices with the accusation that swine and beef may be infected with bird flu.

This is a never ending thing…..food prices go up and seldom come down….maybe there should be some sort of speech from the president on the handling of food prices…

Just a thought!

I Read, I Write, You Know

“lego ergo scribo”

What Can Biden Do?

Get ready for a little history.

Last week I posted on the high cost of food and a loyal reader and commenter Grouchy Farmer, https://grouchyfarmer.com/ and I had conversation on how these prices could be controlled a bit…..I brought up that Nixon had done something in 1973 with the Executive Order process.

Nixon’s Executive Order 11723 states….

SECTION 1. Effective 9:00 p.m., e.s.t., June 13, 1973, no seller may charge to any class of purchaser and no purchaser may pay a price for any commodity or service which exceeds the freeze price charged for the same or a similar commodity or service in transactions with the same class of purchaser during the freeze base period. This order shall be effective for a maximum period of 60 days from the date hereof, until 11:59 p.m., e.s.t., August 12, 1973. It is not unlawful to charge or pay a price less than the freeze price and lower prices are encouraged.

SEC. 2. Each seller shall prepare a list of freeze prices for all commodities and services which he sells and shall maintain a copy of that list available for public inspection, during normal business hours, at each place of business where such commodities or services are offered for sale. In addition, the calculations and supporting data upon which the list is based shall be maintained by the seller at the location where the pricing decisions reflected on the list are ordinarily made and shall be made available on request to representatives of the Economic Stabilization Program.

SEC. 3. The provisions of this order shall not extend to the prices charged for raw agricultural products. The prices of processed agricultural products, however, are subject to the provisions of this order. For those agricultural products which are sold for ultimate consumption in their original unprocessed form, this provision applies after the first sale.

SEC. 4. The provisions of this order do not extend to (a) wages and salaries, which continue to be subject to the program established pursuant to Executive Order 11695 (b) interest and dividends, which continue to be subject to the program established by the Committee on Interest and Dividends and (c) rents which continue to be subject to controls only to the limited extent provided in Executive Order 11695.

SEC. 5. The Cost of Living Council shall develop and recommend to the President policies, mechanisms and procedures to achieve and maintain stability of prices and costs in a growing economy after the expiration of this freeze. To this end, it shall consult with representatives of agriculture, industry, labor, consumers and the public.

Read more on Nixon’s efforts…. Executive Order 11723

While I was no fan of Nixon at least he was doing something for the people of this nation….what is Biden doing?

I have said a few times….we cannot eat words and task force is a waste of time that will be soon forgotten in 2025 and then there is Congress the most corrupted lay-abouts that has ever been.

Granted 1973 was a different age and the special interests were not as liberal with the cash payouts as they are today and agribusiness was nothing but a far off thought.

I have no love for Biden but he could do more if so inclined….but that is a joke….he will do nothing but talk.

In my opinion price controls will do the job….if only for a short time….

I Read, I Write, You Know

“lego ergo scribo”