Farmer’s Share of Retail Food Dollar

[NOOB]

http://woodprairiefarm.commercev3.com/lettercast/b_lc.php?c=AIEEeaA-_

[Silver Shield]

The real comparison should be the profit per item farmer versus retailer.

[Ash_Williams]

The real comparison should be the profit per item farmer versus retailer.

It's slim for everyone up the line. I've talked with one of the retailers in town (part of the same political group as I am). He sells a lot of organic food, so his store is meant for customers willing to accept a higher price for everything. Business is always pretty steady and was good from day 1. Despite that, it still took him 5 years in business finally break even. Most days he actually loses money, when profit from sales is compared to paying the employees, keeping the lights on, paying the lease, etc. What keeps the place above water is the good days, such as before long weekends, where enough comes in to cover the loss for the regular days.

The lease is a huge factor - I can't believe what he has to pay for retail space. It's mind boggling. However, I know a used car dealer down the street who moved away after the property tax for his little shop and parking lot went past 1 million per year, so I understand where the leasing company is coming from.

Actually looking at the whole chain of people from farmer to checkout girl, I only see the city making huge profits for doing almost nothing. What do they offer in return for well over 100k a month in tax? Cleaning the snow off the street in the winter? They don't even do that well. Hell, his location isn't even easily accessible by public transit.

The bigger stores can do everything cheaper on volume but they have the added problem of theft and expired product.