More Processing of Food Means Less Price Inflation


Great graphic from Brian Hughes of the Star: See the whole thing

Why have food prices risen less in North America than in other countries? Because junky processed food has more of its value in the processing and the packaging than in the raw materials. A new study shows that the actual grain in a box of cereal is only two percent of the value of the product.

Where people actually cook and don't buy as much processed food, the actual food portion of the bill is a lot higher, and therefore so was the inflation. Canada got off easy because of the collapse of the US dollar, and because of the Wal-Mart effect; they just started selling groceries in Canada and it has set off a price war.

The farmers are getting more but also are paying more for fertilizer and fuel, and don't like the rise in the price of groceries being blamed on the price of grain. "The farmer gets such a small share of the market dollar," said Bob Friesen, president of the Canadian Federation of Agriculture. "The increase in commodity prices should not result in a big increase at retail."

Price gouging by the big food processors, anyone? ::The Star

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