The new global economy is going to change the way we look at basic commodities. Here is one example in New Zealand:
It turns out that, along with zippy cars and flat-panel TVs, milk is the mark of new money, a significant source of protein that factors into much of any affluent person’s diet. Milk goes into infant formulas, chocolates, ice cream and cheese. Most baked goods contain butter, and coffee chains like Starbucks sell more milk than coffee.
And here is another video relating the issue to Canadian producers…
Smarter than Ezra wrote:
This trend will be seen accross a wider range of products and India and China develop their middle class. It will be interesting to see how this trend will affect the mass vs. local production of products in the future, and the changes that Canadian consumers will make in order to adapt to the increases in the prices of such things as flour, corn, rice, and milk.
Posted on 26-Feb-08 at 1:45 pm | Permalink
Scott from Winnipeg wrote:
It’s fairly sobering to look at the price of a bushel of wheat right now… around $13.
Re: Developing markets and sustainability of industrial food production, check out “The Omnivore’s Dilemma”. I just started reading it last night, at the recommendation of our investment adviser.
Interesting indeed.
Posted on 26-Feb-08 at 5:53 pm | Permalink