OK, here's something to think about ....
When there is a drought in California, we hear on the news that the price of tomatoes and lettuce is going to go up.
If there is an early frost in Florida or California, we are told that our orange juice is going to be cost more and grapefruit is going to be scarce.
Then there is too much rain in Kansas and Iowa, and we know for sure that bread and Nibblets are going to be higher than they've ever been.
But ..........
..... the same drought or freeze or flooding which occur in some of the same regions where hops is a standard crop or tobacco is grown doesn't seem to affect their prices at all. Huh? Think about it. When was the last time you heard that the price of beer is going to double because of weather? Have prices of cigarettes ever skyrocketed because the bad turn of storms?
I haven't.
Why is that?
Really .... why is that?????
I did hear that the price of hops, which have gone up, is driving some small microbreweries out of business. And the price of beer has gone up at the local pub where Wendy and I hang out, just within the past month.
ReplyDeleteI think large breweries, and I assume tobacco companies as well, buy in such large quantities that they are somewhat buffered from spikes in the cost of raw materials for their products. Think I read that somewhere.
But I'm often wrong too, so don't quote me.
Well, dang, before I got to that last paragraph, I called several people and told them, quoting your name. Sorry 'bout that!
ReplyDeleteI should confess, I haven't gone out for a beer in ages, but I haven't noticed any change in a store purchase. If there has been one, it is so small that I didn't notice. And I'm sure you're right about the mega breweries and tobacco companies.
But still, it just seems wrong that our sustenance costs rise while our "pleasure yourself while you ruin your health" stuff seems more stationary.
And I won't quote you again.
:D
Interesting...
ReplyDeleteInterestinger and interestinger. I think Dave's comment about smaller microbreweries makes sense...
ReplyDeleteThe other point about tobacco and beer -- this is an industry that will sell, no matter what -- cigarette prices are an outrageous price now and the public opinion is that it is because of the health risk -- it's probably also to do with the cost of tobacco -- and once again, smokers will pay the price.
As will beer drinkers -- or they switch to a "cheaper" brand rather than buy premium or imported.
It comes down to supply and demand. And there's no question that eating well costs more than eating garbage...
And we can get into oil too -- why do those prices fluctuate so much?!
You're branching out into economics and marketing here Lynilu!! LOVE it!!!!
Jen, yeah, I thought so.
ReplyDeleteSherry, yes, his logic does make sense.
I haven't given a lot of thought to cigarettes in a long time, but a few years ago, the various taxes on them were more than the price of the cigs. My hub groused all the time about it. (The sad thing is that he paid the ultimate price for smoking, taxes or not.) My point was not the taxes, of course, but the basic price of the tobacco. You just never hear that the crop was bad and it will be handed down.
And the beer ... I don't think much about it because a 12 pack lasts me a couple months, so it isn't a huge deal to me. However, I wonder about those people who drink daily. It would hit them hard I would think if it were an issue. Either Dave's opinion is pretty accurate or the industries somehow keep it hushed.
I donno ... it just galls me that the essentials are so vulnerable. I realize we can't store up tomatoes in a warehouse like we can tobacco.
Now, about the price of oil and why it fluctuates so much? MY answer ... BECAUSE IT CAN!!!
Glad you like the change of topic. I aims ta please, ma'am!!!
Well, I'm baffled. But I do think you're on to something here, Lynilu. It just seems fishy. I wonder if the apparent stability in tobacco prices has anything to do with the taxes? Maybe the government won't allow crop price fluctuations which might interfere with its tax income!
ReplyDeleteHugs,
Betty
Betty, I donno. It just seems peculiar, doesn't it? Maybe I'll find some time to see what I can ferret out. I'm not even sure where to begin, but..... we'll see!
ReplyDeleteYou know, I really have never thought about it. Not a beer drinker and the hubs doesn't drink near like he used to either (Thank God).
ReplyDeletePatti, I hadn't thought about it, either until just the other day. It just seems peculiar that we don't hear about those in the news like we do the other things. But it's good that it's not a big issue in your house.
ReplyDelete