Gas prices are down how come grocery prices didn't come down too?

[The Joker]

I see the price of meat still very high. And vegetables,Milk other things in store are still high.

 

[a l i v e]

The cycle lags. For example:

For corn (to feed cows so we can get milk and meat):

You need to prepare and fertilize cornfields. This happens in the fall/winter. In spring you plant seeds. Then take care of the fields during summer, then harvest.

After harvest you finally are able to feed your cows, then about a year or so later you are able to butcher the cow to eat.

That is approximately 2 year cycle. Of course we have cycles overlapping. All the expenses for that one cycle is already incurred before you see the products on the shelves at the grocery store so the price is still high.

If gas prices goes back down for about 1-1.5 years, we'll start to see lower prices.

 

[diehardbiker]

What kind of fuel they use mostly to transport goods?

Diesel! The price of Diesel have not decrease much, and most of the time buying diesel usually though contract from fuel supplier.

And who wants cuts in their wages?
And yup, mandatory ethanol mixture with gasoline has cost farmers pretty much, so with shortage of corn, mind you, Ethanol comes from corn, so they have to pay steep price for the upswing demand for Ethanol fuel from corn, Farmers need corn to feed cows, and other animals so the cost adds up.

 

[whatdidyousay!]

The cycle lags. For example:

For corn (to feed cows so we can get milk and meat):

You need to prepare and fertilize cornfields. This happens in the fall/winter. In spring you plant seeds. Then take care of the fields during summer, then harvest.

After harvest you finally are able to feed your cows, then about a year or so later you are able to butcher the cow to eat.

That is approximately 2 year cycle. Of course we have cycles overlapping. All the expenses for that one cycle is already incurred before you see the products on the shelves at the grocery store so the price is still high.

If gas prices goes back down for about 1-1.5 years, we'll start to see lower prices.

The drought a lot of states had this summer affected the cost meat , the price will not go down . This was on the news that the drought was going to make food prices go up .

http://online.wsj.com/articles/SB10001424052702303287804579445311778530606