There is no way that food prices can be expected to go down anytime soon, whatever market watchers predict. There is a quaint notion that supermarkets live like church mice, dedicated to fighting a selfless battle for ever lower prices for the consumer. It is no more than a quaint notion (here is a link to an earlier item on this topic). The reality is closer to a shark-infested reef that tears the keels off passing ships when the tide is right, leaving rich pickings for the sharks.
FFCC economists need to retrieve Ariadne’s thread in the labyrinth to continue. Having said that indirect data is hard to stand up, it is time to attempt this, anyway. The distinguishing feature of supermarket buying departments is that they have complete control on costs and margins. They do not need to be over-concerned about whose pocket they dip into: a supplier is as good as a consumer for this purpose. More on this anon.
The cornerstone of the FFCC analysis is that there is a sustainable price for a healthy diet; this could be realised through savvy investment, with luck. This is the figure at the heart of the study.
more follows later
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