Comments on: The price of bread http://blog.greens.org.nz/2008/03/28/the-price-of-bread/ hopping along the corridors of power Thu, 04 Dec 2008 22:59:02 +0000 http://wordpress.org/?v=2.3.3 By: uk_kiwi http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40140 uk_kiwi Sun, 30 Mar 2008 21:51:51 +0000 http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40140 NZ imports most of its wheat from Australia at market prices as the climate is too damp here IIRC. The canterbury plains and parts of the Waikato are about the only places suitable, and they are being converted to irrigated dairying at a huge rate. The increase in basic food prices, especially dairy has been fast and brutal on the poor and fixed incomes. The dairy companies don't give a stuff about the nz public suffering hardship as a result. From The Press: "New Zealand produces about 30% of its milling wheat, with the rest imported. The latest Australian price for standard-grade white-flour wheat is slightly over $A600/t ($NZ693/t). Farmers believe this is closer to $800/t once freight and cartage is added. If prices rise to $700/t, the wheat share of bread prices is expected to increase from 18c-20c a loaf to 40c to 42c a loaf." NZ imports most of its wheat from Australia at market prices as the climate is too damp here IIRC. The canterbury plains and parts of the Waikato are about the only places suitable, and they are being converted to irrigated dairying at a huge rate.

The increase in basic food prices, especially dairy has been fast and brutal on the poor and fixed incomes. The dairy companies don’t give a stuff about the nz public suffering hardship as a result.

From The Press:

“New Zealand produces about 30% of its milling wheat, with the rest imported. The latest Australian price for standard-grade white-flour wheat is slightly over $A600/t ($NZ693/t). Farmers believe this is closer to $800/t once freight and cartage is added.

If prices rise to $700/t, the wheat share of bread prices is expected to increase from 18c-20c a loaf to 40c to 42c a loaf.”

]]> By: andrew http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40138 andrew Sun, 30 Mar 2008 20:28:09 +0000 http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40138 i assume if flour is not a big part of the cost of bread, energy is. anyway, although established bakers might be getting flour at old prices, they are at least aware that new competitors, or expanded production by existing competitors, would require higher-priced flour. i assume if flour is not a big part of the cost of bread, energy is.

anyway, although established bakers might be getting flour at old prices, they are at least aware that new competitors, or expanded production by existing competitors, would require higher-priced flour.

]]> By: samiuela http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40136 samiuela Sun, 30 Mar 2008 19:43:19 +0000 http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40136 As always, there is not one single cause for rising food prices. DougT in several posts has noted the underlying causes are resources running out, combined with overpopulation. However, on top of these factors, which lead to an increasing price over time, the price is also modulated by other things such as competetition (or lack of it). Personally, I think it is important to address the underlying causes of food shortages (overpopulation and diminishing resources), the other things are just details in the bigger picture. The same thing applies to petrol. People whinge and moan about the price of petrol, and believe the oil companies are in collusion with each other to keep the price high (compared to the recent past, not compared to the future price). This may be true, but the underlying cause is that 6+ billion people are rapidly depleting the resource, and no amount of competition will ever make oil cheap again. As always, there is not one single cause for rising food prices. DougT in several posts has noted the underlying causes are resources running out, combined with overpopulation. However, on top of these factors, which lead to an increasing price over time, the price is also modulated by other things such as competetition (or lack of it).

Personally, I think it is important to address the underlying causes of food shortages (overpopulation and diminishing resources), the other things are just details in the bigger picture.

The same thing applies to petrol. People whinge and moan about the price of petrol, and believe the oil companies are in collusion with each other to keep the price high (compared to the recent past, not compared to the future price). This may be true, but the underlying cause is that 6+ billion people are rapidly depleting the resource, and no amount of competition will ever make oil cheap again.

]]> By: kiore1 http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40128 kiore1 Sun, 30 Mar 2008 04:40:25 +0000 http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40128 Why on earth should bread have milk in it? Bread is wheat flour and yeast. Why on earth should bread have milk in it? Bread is wheat flour and yeast.

]]> By: DougT http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40001 DougT Fri, 28 Mar 2008 01:47:23 +0000 http://blog.greens.org.nz/2008/03/28/the-price-of-bread/#comment-40001 I think the downwards trend in world food aid shows that we might also be close to what I suppose you could call "peak food". Since oil has been used as an energy source, we have been living on free energy (I say free, because it only used a small land area as a point to draw it out of the ground). This free energy is almost gone and it would seem that the prefered energy source will come from growing it in the form of plants. If we wanted more energy from oil, we just pumped it out faster (with no extra cost in land area), but if we want it from plants, we have to wait for it to convert energy from the sun (which we can't get to burn any faster). So the only way to get more energy is to grow more fuel, which now costs us more land area. The same land we grow our food on. I'd say the mentality behind raising bread prices might be the same reason petrol goes up before the price of oil does. I think the downwards trend in world food aid shows that we might also be close to what I suppose you could call “peak food”. Since oil has been used as an energy source, we have been living on free energy (I say free, because it only used a small land area as a point to draw it out of the ground). This free energy is almost gone and it would seem that the prefered energy source will come from growing it in the form of plants.

If we wanted more energy from oil, we just pumped it out faster (with no extra cost in land area), but if we want it from plants, we have to wait for it to convert energy from the sun (which we can’t get to burn any faster). So the only way to get more energy is to grow more fuel, which now costs us more land area. The same land we grow our food on.

I’d say the mentality behind raising bread prices might be the same reason petrol goes up before the price of oil does.

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