Recession chain.

[jacey]

My next-door neighbour an (OAP) asked me the other day. Why has his 200g. of ham,has risen is price from �1. to �1.25. He said ,he knows there's a recession but can't understand ,this rise. ( I'm not very 'financially aware' ) I said, Well I suppose, it all goes back along the chain, cost of 'supplying feed for pigs, slaughter, packaging,(and oil in all these processes) distribution etc etc. He said he'd like a proper explaination. Can anyone help please, with an A-Z of why his bloody ham is �1 .25. Thanks ;-)

[jno]

Inflation affects us all. I don't know exactly what's happened here, but maybe the farmer's land rental has gone up so he has to raise the price of pigs to cover it. Maybe the shop's costs have gone up, maybe the rates have risen or they're having to pay employees more. Plus all the things you mentioned. Everything is interconnected.

And maybe your neighbour's income has also risen to take account of it? (Though a 25% rise seems very steep.)

[jacey]

Thanks for your reply jno, yes it does seem high and it's not a little shop, it's Iceland he's talking about.

[dot.haukes]

Is the ham home produced or imported? that may be relevant, it could be to do with the euro.

[Ric.ror]

Regardless - you are to be applauded for helping and being patient with you neighbour

[jacey]

Thankyou Ric.ror, It works both ways. I will be knocking at his door soon, to ask him to remove my 'hoover bag' cos' there's a HUGE hairy spider in it!!! :-( I'll find out if the ' bloody ham' is imported or not. :-)

[jacey]

Well,He's kindly 'de-bagged Henry for me'. Apparently the ham has gone back to costing �1. this week. BUT they have reduced the weight! Origins unknown, as he's eaten it. Thankyou all for your help. :-)

[buildersmate]

Tell him it's because of the swine flu.

[KSnewsED]

Looks like it was on special offer at �1.25. Some pigs can also be very awkward.

[Coobeastie]

�1.25 still doesn't seem all that bad for a packet of ham. When said in percentages it sounds high (blimey 25%) but then if they'd put it up by say 4% or 2% people would be saying that its daft for it to go up by only a few pence.

As they others have said its probably an affect of raised costs throughout the supply chain.

In very simple terms if the chain consisted of 10 or so processes and each had seen an increase of a couple of pence per process that could easily explain a 25p rise.

[Mr Veritas]

Being 86,I have seen food gluts and food shortages,price falls and price increases.
Regretably,during a recession prices will rise,we cannot do much about it unless we want to eat less.
Prices will eventually fall(on some things)whilst rising on others.
Costs (of raw supplies,taxes,interest repayments etc) have risen for manufacturers,and they have to pass some of it on to the customer,it's unavoidable.
In my lifetime I have seem FAR worse food increases than a packet of ham rising 25p!
I can only say do what we fo,if Ham is too expensive llok for something cheaper (like Corned Beef or Hazlet)
I am afraid your friend just has to shop around!

[Mr Veritas]

Sorry,dancairo,but you are living in dreamworld,It may be warm and cosy in there,but it doesn't bear any resemblance to the real world.
If he doesn't like the prices at Iceland,there is always Lidl or Aldi.

[trt]

That of course Mr Veritas if there is a Lidl or Aldi
not to far away from him?

There is not one near me for at least 20/30 miles.