peppy said:
nosuchreality said:
Table 2 in the UC Davis report. Gross returns $6760/acre, total operating costs, $5458/acre, capital & overhead cash costs $382/acre, etc. Net Returns $871/acre.
That's 12.8% Land costs is covered in the Opex under land rent. $250/acre.
I didn't realize that such a high percentage was going into labor (on the growers side). A 20% increase would kill any margin the grower/farmer has. What sets the price of tomatoes on the open bulk market? $6.50/25lb box seems crazy low. Is the grower getting shafted on this one? I understand there is a cost to do distribution and refrigeration plus any sort of losses of unsold inventory, but still ... yikes! The worst part is that after all this they taste like crap.
I miss No_Vas for these discussions. The price is set like any other commodity. In a nutshell, the grower is shafted, has been since the 1980s, but IMHO, the consolidation of major global corporations in the middle man roles has shifted balance.
Watch something like "Food inc.", "King Corn", "Farmageddon" or other resources. The downside is pretty big, IMHO. The main plus is our grocery shelves are stuffed with "cheap" food.