Commodities are tough and as a minor conspiracy theorist, I believe there is constant fixing going on.
Today its Butter. No trades in the past week and we are stuck with a weekly average from last Friday's high of 2.885.
To the average person that is 165.00 a block - For a baker its profit killing. 44% higher than last year, and 139% higher than where is should be based on the other commodity factors that go into it (feed, fuel to name a few).
My suppliers cannot justify the price, they just put me on COD to make sure they are covered at this price.
Farmers will be sure to be happy to take both this higher price and won't say a word about the continuing subsidies they will continue to take as there is no one watching both the farm subsidies and market price.
Too bad there is no bakery support, small business subsidy, to combat this. Its just easier to let it ride and tack on higher taxes, insurance and labor cost.
Thanks California, any other states willing to accept a small business? I'll go.........
