Monday, August 31, 2009

Extraction?



(click to enlarge)

Today, August 31, 2009 USDA’s Agricultural Price report was released. You may not be surprised to know that August 2009 farm milk price was 25% of parity.

There have been meetings and hearings and publications of all sorts on the current farm milk price situation.

Little has been said about the growing spread between farmers and consumers. This is not just about milk as the above graph shows.

Now, since there does not seem a large sum of cash under the retailer’s mattresses, a question, perhaps the question, which needs to be asked, is just how efficient is the food marketing system? Is Wal-Mart serving a useful purpose or just an extractor of cash from the efforts of others?

2 comments:

  1. check out the movie "Wal-mart the high cost of low price" you will be shocked. i dont even want to walk into their doors. As we do walk small towns any more i still say walmart destroyed downtown america.

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  2. Dear John,

    I have a question for you. Can you tell me on your blog how is the market right now in America for the dairy farmers?

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