Question by LittleClick: Why is Bread in Arizona so expensive?
My older brother lives in Arizona and he was complaining to my mom about the bread prices. The town that he used to live in the bread is only $ 0.99 and there it is like $ 4. Just wondering.
Answer by curmudgeon1955
Arizona doesn’t grow wheat much- it has to be trucked or railed in. Cost of fuel- diesel now $ 3.25- $ 3.80/gallon. Big Brother is paying the delivery costs. Where did he live before- Kansas, Nebraska? They grow lots of wheat there and don’t have far to ship it or the bread made from it. The second factor is dollar is declining. Canadian wheat is world marketed- last year Canadian dollar was .85 cents American, now at parity $ 1.00 Canadian is =$ 1.00 American. Some American wheat being shipped out instead of Canadian. Third factor is the decreased acreage planted in wheat- if ground can grow corn at high price because of increased demand for gasohol the farmers will plant corn instead of wheat. This results in somewhat higher wheat prices which translates to higher bread cost to baker and that means higher retail prices. If you want to check commodity prices for fun -check current wheat, corn, diesel prices to last years and year before about this time. Then check gold and silver prices past three years. Then compare Canadian dollar, Euro, and Mexican peso prices. Keep you busy while the toast is browning. Just for comparison I get mixed grain/Rye bread at bakery for about $ 4.59 to $ 5.49 here in Wisconsin- 2 pound loaves.
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