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  3. No really, why are groceries so expensive now?

No really, why are groceries so expensive now?

Scheduled Pinned Locked Moved Canada
canada
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  • streetfestival@lemmy.caS streetfestival@lemmy.ca
    This post did not contain any content.
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    No really, why are groceries so expensive now?

    A Q&A with an economist about skyrocketing food prices…

    favicon

    The Grind Magazine (www.thegrindmag.ca)

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    teppa
    wrote on last edited by teppa@piefed.ca
    #13

    Its usually always the money supply

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    Operational Details for Government Purchases of Canada Mortgage Bonds

    In the 2023 Fall Economic Statement, the Canadian government announced its intention to purchase Canada Mortgage Bonds (CMBs), beginning in 2024, up to an annual maximum of $30 billion while ensuring that the pace and volume of these purchases are appropriate for market conditions.

    favicon

    (www.bankofcanada.ca)

    Here they are buying half of all mortgage bonds.

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    • streetfestival@lemmy.caS streetfestival@lemmy.ca
      This post did not contain any content.
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      No really, why are groceries so expensive now?

      A Q&A with an economist about skyrocketing food prices…

      favicon

      The Grind Magazine (www.thegrindmag.ca)

      Z This user is from outside of this forum
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      zorque@lemmy.world
      wrote on last edited by
      #14

      Inelastic demand. It’s easier to charge more for something if people need it to survive.

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      • streetfestival@lemmy.caS streetfestival@lemmy.ca

        Where does that extra money that we now pay for groceries go?

        There was a huge boom in profits starting in 2022 through to today. We’ve never seen profit-taking like this. It was an unbelievably great time for corporate Canada. When you break it down by industry, most of those profits were going to oil and gas. For example, in the supply chain of potato chips there’s diesel used to farm the potatoes, cook them, and move them to stores. A lot of that increase didn’t go to the grocery store selling the chips. It went to energy companies.

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        bcsven@lemmy.ca
        wrote on last edited by
        #15

        There was a graph of food price vs what farmers got paid. Farmer goods prices have been almost flat in comparison to big chain food prices rising continually with a drastic spike for COVID onward

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        • G grandwolf319@sh.itjust.works

          Okay I really don’t understand why this wouldn’t push for electrification?

          Is it because the big machines they need is made by monopolies like John deer and they refuse to go electric?

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          nyan@lemmy.cafe
          wrote on last edited by nyan@lemmy.cafe
          #16

          Part of the reason is likely that farming equipment is bloody expensive. A new combine harvester can cost nearly a million dollars, and there aren’t a hell of a lot of used electrical machines on the market yet. Each farm will have several machines that currently run on gas or diesel. How many can the average farmer afford to replace how fast?

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          • M mpony@lemmy.world

            dog food is about double what it was in 2020. Say what you will about the cost of energy going up during that time: there’s no way to blame ONLY energy costs for that.

            It’s greed.

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            simulacra_procession@lemmy.today
            wrote on last edited by
            #17

            I heard somewhere private equity firms are coming for our pets already, buying up tons of local and regional pet hospitals, dog and pet food suppliers, etc. Basically they know kids are increasingly unaffordable and so they need to capitalize on the fact more millennials are staying childless and treating their pet as their child.

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            • Z zorque@lemmy.world

              Inelastic demand. It’s easier to charge more for something if people need it to survive.

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              canadaplus@lemmy.sdf.org
              wrote on last edited by canadaplus@lemmy.sdf.org
              #18

              If we had competition, the prices would get run down anyway by people trying to expand their market share.

              If.

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              • DiplomjodlerD Diplomjodler

                Monopoly capitalism will do that to you.

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                canadaplus@lemmy.sdf.org
                wrote on last edited by
                #19

                Canadian grocery stocks have been going up like absolute gangbusters lately.

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                • S simulacra_procession@lemmy.today

                  I heard somewhere private equity firms are coming for our pets already, buying up tons of local and regional pet hospitals, dog and pet food suppliers, etc. Basically they know kids are increasingly unaffordable and so they need to capitalize on the fact more millennials are staying childless and treating their pet as their child.

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                  H This user is from outside of this forum
                  hexonxonx@lemmy.dbzer0.com
                  wrote on last edited by
                  #20

                  That happened a decade ago. You can’t find many pet supplies anywhere anymore because one company owns the distributors and the stores – and they don’t give a shit because they’re American and Canada is too small of a market to support, so it’s left to wither and die.

                  The same with Veterinary services. They’ve all be bought up, made into chains, or signed bullshit distribution or service agreements by a single (American) company and now it costs many multiples what it used to for no reason except greed.

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                  • C canadaplus@lemmy.sdf.org

                    Canadian grocery stocks have been going up like absolute gangbusters lately.

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                    H This user is from outside of this forum
                    hexonxonx@lemmy.dbzer0.com
                    wrote on last edited by
                    #21

                    Where does the money for the investor’s dividends come from?

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                    • H hexonxonx@lemmy.dbzer0.com

                      Where does the money for the investor’s dividends come from?

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                      canadaplus@lemmy.sdf.org
                      wrote on last edited by
                      #22

                      From overcharging just a little bit for everything, collaboratively. (In that case)

                      That’s why they’re doing so well.

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                      • G grandwolf319@sh.itjust.works

                        Okay I really don’t understand why this wouldn’t push for electrification?

                        Is it because the big machines they need is made by monopolies like John deer and they refuse to go electric?

                        E This user is from outside of this forum
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                        eranziel@lemmy.world
                        wrote on last edited by
                        #23

                        Electrifying farm equipment has huge engineering hurdles. They need a massive amount of power, which would mean very large and incredibly expensive battery packs. Those batteries would take either a long time to charge, or high current charging stations.

                        During seeding or harvest the machines often run for 16+ hours a day, and are literally out in the middle of a field. Where is the super-fast charging station going to go? They can’t easily travel all the machinery back to home base every night, and there’s no way it makes economical sense for a farm operation to get chargers installed at every field.

                        These are not necessarily insurmountable problems. There are a number of similarities to trucking, for example, and that’s an industry that’s starting to see electrification now. But the logistical problems are much harder than trucking. The biggest reason that John Deere etc… aren’t making electric tractors right now is that no one would buy one, because no one has any infrastructure in place for it.

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                        • N nyan@lemmy.cafe

                          Part of the reason is likely that farming equipment is bloody expensive. A new combine harvester can cost nearly a million dollars, and there aren’t a hell of a lot of used electrical machines on the market yet. Each farm will have several machines that currently run on gas or diesel. How many can the average farmer afford to replace how fast?

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                          eranziel@lemmy.world
                          wrote on last edited by eranziel@lemmy.world
                          #24

                          Are there any electric tractors/combines on the market, let alone used ones? I mean industrial sized, not small yard work equipment.

                          EDIT: OK, yes, there are some small electrified tractors available now. Fendt has a line available to customers, John Deere has a prototype, etc… But they are the smallest size of industrial tractors, meant for work like greenhouses, feeding livestock, municipal work, etc…

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                          • Lady Butterfly she/herL Lady Butterfly she/her

                            100% agree, businesses will charge as much as they can get away with

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                            blarghly@lemmy.world
                            wrote on last edited by
                            #25

                            This isn’t surprising. It is basic economics.

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                            • G grandwolf319@sh.itjust.works

                              Shouldn’t we be past the asking why phase and more into the solution phase.

                              Even if things are just gonna be expensive moving forward, the government subsidizes essentials that people need to survive. So even if corporates aren’t being greedy (they are) somethings gotta give, no?

                              Otherwise people will vote for PP or worse in a few years

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                              fireretardant@lemmy.world
                              wrote on last edited by
                              #26

                              We still need to ask why so we can get at the root of the problem. Shrugging and subsidizing is just telling galen weston “keep increasing your prices, and we’ll start throwing tax dollars at you.”

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                              • M mpony@lemmy.world

                                dog food is about double what it was in 2020. Say what you will about the cost of energy going up during that time: there’s no way to blame ONLY energy costs for that.

                                It’s greed.

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                                B This user is from outside of this forum
                                blarghly@lemmy.world
                                wrote on last edited by
                                #27

                                I’m so confused anytime someone blames “greed” for price increases.

                                First of all, corporations aren’t people. And therefore, they cannot since, and cannot be greedy. They are inhuman profit maximizing machines. They always have been. Blaming “greed” doesn’t make sense because (a) it anthropomorphizes corporations, (b) “greed” has been constant across this time frame.

                                If greed were to blame for these price increases, then why were prices not rising like this for every other year in living memory? Blaming greed for price increases is like saying a building burned down in a fire because of all the oxygen in the atmosphere. Like… sure? I guess that’s true? But what is the takeaway? Being opposed to oxygen?

                                Back on topic - if you say the problem is greed, what policy proposals do you have to solve this problem? Greed is literally a biblical sin - what is your proposal to ban what is essentially one of the key components of human nature?

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                                • O outlierblue@lemmy.ca

                                  Why are groceries so expensive now…

                                  Link Preview Image
                                  Loblaw Reports 2024 Fourth Quarter Results And Fiscal Year Ended December 28, 2024 Results

                                  BRAMPTON, ONTARIO February 20, 2025 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the fourth quarter ended December 28, 2024(1) and the release of its 2024 Annual Report. The 2024 Annual Report includes the Company’s audited financial statements and Management’s Discussion and Analysis (“MD&A”) for the fiscal year ended December 28, 2024.

                                  favicon

                                  (www.loblaw.ca)

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                                  masterofn001
                                  wrote on last edited by
                                  #28

                                  The Weston’s can’t survive in that castle on the paltry billions they have.

                                  They need MORE!

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                                  • B blarghly@lemmy.world

                                    I’m so confused anytime someone blames “greed” for price increases.

                                    First of all, corporations aren’t people. And therefore, they cannot since, and cannot be greedy. They are inhuman profit maximizing machines. They always have been. Blaming “greed” doesn’t make sense because (a) it anthropomorphizes corporations, (b) “greed” has been constant across this time frame.

                                    If greed were to blame for these price increases, then why were prices not rising like this for every other year in living memory? Blaming greed for price increases is like saying a building burned down in a fire because of all the oxygen in the atmosphere. Like… sure? I guess that’s true? But what is the takeaway? Being opposed to oxygen?

                                    Back on topic - if you say the problem is greed, what policy proposals do you have to solve this problem? Greed is literally a biblical sin - what is your proposal to ban what is essentially one of the key components of human nature?

                                    I This user is from outside of this forum
                                    I This user is from outside of this forum
                                    imetators@lemmy.dbzer0.com
                                    wrote on last edited by
                                    #29

                                    Aren’t corporations ran by people? Who do you think decides on how a company operates?

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                                    • I imetators@lemmy.dbzer0.com

                                      Aren’t corporations ran by people? Who do you think decides on how a company operates?

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                                      B This user is from outside of this forum
                                      blarghly@lemmy.world
                                      wrote on last edited by
                                      #30

                                      Didn’t think I’d see support for Citizens United here, but I guess anything is possible…

                                      Anyway, publicly traded corporations are subject to incentive structures that the market has created. Corporations are run by a CEO, but the CEO is elected by the board. The board, in turn, is elected by the shareholders. The shareholders are mostly mutual funds, which are funded by ordinary people.

                                      If the CEO makes decisions which clearly reduce profitability, then they will be fired by the board. If the board doesn’t fire them, then the mutual fund managers will vote to replace the board. If the mutual funds don’t replace the board members, their funds won’t beat the market, and their investors will pull out and put their money elsewhere. And if none of them do any of that then another grocery store will raise prices as much as demand allows, increasing profits relative to the more “noble” grocery corporation, which will allow them to take on an influx of investment capital which they can then use to expand their market share and gain a competitive advantage over the their competition.

                                      So ultimately, the “greedy” one is Bob, a middle manager in a nondescript office park in suburban Iowa who wants to invest his retirement funds somewhere with good returns so that he doesn’t have to work until the day he dies.

                                      This is why Citizens United was a bad thing. It expanded the ability of inhuman, profit-maximizing machines to influence politics.

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