Wednesday, February 1, 2012

The evils of cheap food

The price war between Coles and Woolworths may have slowed food inflation but the latest discounts are mostly a bad thing according to commentary in the Cairns Post.
But the move has outraged the region’s farmers and consumer groups who are concerned they will be forced to absorb the price reductions and it will put pressure on an industry already facing serious sustainability concerns.
Coles have attributed the discounts to bumper crops and oversupply which would not appear consistent with sustainabilty concerns? The recent potato glut can now apparently also be linked to the demonic duopoly:
Tableland potato grower David Nix said potato prices were unlikely to be lowered any further, but their crop was a prime example of how Coles’ price cuts would affect the industry.
As previously posted the recent potato glut and cheap spuds was driven by a large oversupply after Tabeland growers themselves planted too many without any supply contracts. It was all their own work with nobody else to blame but themselves

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