Brownfield's Ken Anderson had a conversation with the Nebraska Corn Board's Randy Klein today - discussing the dramatic price decline in commodity prices like corn and the lack of corresponding drop in food prices.
Klein noted that corn and other commodity prices never had much to do with the rise in food prices originally, like the Corn Board and others reported time and again, so it is not surprising that food prices haven't dropped, either.
A big factor in food higher prices was higher energy costs - and those have also come down some. That puts food companies, for the most part, in a pretty good spot.
Klein closed by noting grocery manufacturers are doing "pretty well" - and taking advantage of the opportunity. (For more on that, click here.) He also expects that the Grocery Gang is not yet done with its attacks on ethanol.
To listen to the interview, click here.
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