Re: food prices

Anita Graf (agraf@agecon.uga.edu)
Thu, 8 Apr 1999 14:15:49 EST5EDT

> Speaking of apples vs. oranges: You are comparing a convenience quantity (1/2gl)
> to a bulk quantity (gl) which invalidates the comparison. Any retailer has
> preferences of sizes that s/he wants to handle. That preference is expressed as
> price premium/discount for preferred sizes. Further, milk is a less than
> satisfactory item to compare since grocers commonly discount selected meat,
> puoltry & dairy items as "loss leaders".
>
> I would suggest your original subject (organic oranges vs. non-organic oranges)
> might make a better basis for comparison by the #, the crate or by the 50# bag
> of each...

Well, let's clear this up. In both the health food stores and the
supermarkets in this area, organic milk is only sold by the half
gallon.

As for the "loss leader" theory, this would make my comparison LESS
dramatic rather than more so. I have checked the price of organic
milk in both "specialty" store and supermarket (I shop both every
week) and at best the supermarket organic milk is only $.10 cheaper
-- not much of a "loss leader" if you ask me. Other areas may be
different, but that's how it is here. Anita

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