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Can someone explain why Potato Chips are so expensive? How would another winter freeze affect the price of beer

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Can someone explain why Potato Chips are so expensive? How would another winter freeze affect the price of beer
Posted by railtrail on Saturday, October 18, 2014 9:06 PM

Beer and Potato Chips

Potatoes move by rail much in the same way that grain does to reqional processors. For instance Frito Lay is a major customer on the SUZYQ to Conklin NY. I am paying 4.75 or even more for a bag of chip. Beer is still pretty cheap but even Budwiser can be out of my price range. Been drinking Gennese Beer. 5.50 for a can of Bud on Amtrak is enough to make me brown bag it next time I take the train. I know that grain prices are set by futures contacts but perhaps the potato guys have to wait behind the grain guys when it comes to rail cars for potato meal.

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Posted by ndbprr on Monday, October 20, 2014 1:46 PM
Because you and everyone else is willing to pay $4.75 a bag (or at least enough people that it hasn't hurt sales).
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Posted by dknelson on Monday, October 20, 2014 5:01 PM

Surely it has to be the fault of either Obama or Bush.  Or both. 

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Posted by edblysard on Monday, October 20, 2014 5:50 PM
I‘m betting it’s the Chinese, with all their potato chip imports….

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Posted by K4sPRR on Monday, October 20, 2014 6:18 PM

The Organization of Potato Exporting Countries (OPEC) cited unrest in potato producing countries and possible Iranian blockade of potato ports in Maine as reasons behind the high cost of crude potato's.  China has also been accused of forcing the cost of a BAP (Bushel and a Peck) upward due to investment speculators on the world market.

Simply put, America needs to remove itself from the world market and increase domestic potato farming. 

Norfolk Southern contributes to the problem as train crews are forced to increase the number of snacks taken on the job to hold the grumbellies over while sitting dead in the water during melt downs.  As the demand for potato chips increase the OPEC nations may not be able to sufficiently support it.  

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Posted by Norm48327 on Monday, October 20, 2014 6:38 PM

Potato famine in Idaho. Crying

Norm


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Posted by samfp1943 on Monday, October 20, 2014 6:56 PM

Grumpy

 

railtrail

Beer and Potato Chips

Potatoes move by rail much in the same way that grain does to reqional processors. For instance Frito Lay is a major customer on the SUZYQ to Conklin NY. I am paying 4.75 or even more for a bag of chip. Beer is still pretty cheap but even Budwiser can be out of my price range. Been drinking Gennese Beer. 5.50 for a can of Bud on Amtrak is enough to make me brown bag it next time I take the train. I know that grain prices are set by futures contacts but perhaps the potato guys have to wait behind the grain guys when it comes to rail cars for potato meal.

 

Possibly, If New York State would allow for fracking of vegetable oil, it would bring the price down?  And if They( da' State Goberment) would quit pushing rails-to-trails there.. Frito-Lay could bring in potatoes, in bigger lots than a haversack full?  Grumpy

 

 

 


 

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Posted by Norm48327 on Monday, October 20, 2014 7:13 PM

Ah, but trolls love their beer and potato chips. Dinner

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Posted by jclass on Monday, October 20, 2014 7:15 PM

Yup, New York's protectionism knows no end.  No Maine badaydas, no State of Maine boxcars, no Lionel.

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Posted by MP173 on Monday, October 20, 2014 8:28 PM

Perhaps you are shopping at the wrong place.  I havent paid more than $2 for a bag of chips.  

Try Aldi.

 

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Posted by petitnj on Monday, October 20, 2014 8:56 PM

Potatoes are about $.50/lb. Chips are $4/lb. Check how much shelf space Walmart allocates for chips and you will know how much profit they make. Old Dutch is a local company and we try to buy something that Frito-Lay doesn't make. 

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Posted by greyhounds on Monday, October 20, 2014 9:05 PM

railtrail
I know that grain prices are set by futures contacts but perhaps the potato guys have to wait behind the grain guys when it comes to rail cars for potato meal.

Potato meal?

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Posted by greyhounds on Monday, October 20, 2014 9:13 PM

ndbprr
Because you and everyone else is willing to pay $4.75 a bag (or at least enough people that it hasn't hurt sales).

ndbprr: You are very correct.  If they can sell a bag for $4.75 without loosing enough sales to offset any price increase, they'll do it.  And they should.  That's the most efficient way to price potato chips (or about anything else.)  

You understand more about economics than say, about 95% of the population.

"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by tree68 on Tuesday, October 21, 2014 7:30 AM

Hence the phrase "what the market will bear..."

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Posted by aricat on Tuesday, October 21, 2014 8:08 AM

Let's understand that you are not just paying for the potato chip; you are paying also for the packaging. The packaging is manufactured by someone else and has to be shipped to the potato chip company. Potato chip company employees that have nothing to do with the manufacture of potato chips are still needed to run the machines that package them while other employees take the finished potato chips to the warehouse. They are then loaded into trucks for shipment nation wide. It is a long process to get your potato chip to your local 7-11. The cost of packaging and shipping adds much to the cost of any manufactured food product; oftentimes more than the actual cost for the production of the potato chip itself.

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Posted by schlimm on Tuesday, October 21, 2014 8:17 AM

Leave the troll to cheap chips and swill as he rides the (freight) train.  My understanding is he rides the boxcars, not the Amtrak diner.

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Posted by Paul_D_North_Jr on Tuesday, October 21, 2014 1:16 PM

tree68 posted "Hence the phrase "what the market will bear..." ". 

Actually, I believe that phrase started with a railroad rate guy as "what the traffic will bear . . .". 

Don't forget that potato chips probably load pretty 'light' - i.e., they 'cube out' in filling a trailer, container, or boxcar before they 'weigh out' (unless they're stacked tightly like the Pringles brand).  So the inability to carry more in each load and hence spread out the transport costs adds to the cost of those that can be carried . . . Mischief
 
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Posted by BaltACD on Tuesday, October 21, 2014 2:05 PM

Paul_D_North_Jr

tree68 posted "Hence the phrase "what the market will bear..." ". 

Actually, I believe that phrase started with a railroad rate guy as "what the traffic will bear . . .". 

Don't forget that potato chips probably load pretty 'light' - i.e., they 'cube out' in filling a trailer, container, or boxcar before they 'weigh out' (unless they're stacked tightly like the Pringles brand).  So the inability to carry more in each load and hence spread out the transport costs adds to the cost of those that can be carried . . . Mischief
 
- Paul North. 

 

 

Hence the high cube 86 foot potato chip cars

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Posted by railtrail on Tuesday, October 21, 2014 3:42 PM

Potato Chips would Cube Out a boxcar before weighing out. i think we have just found a product to move in empty high cube autoparts cars.

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Posted by cacole on Tuesday, October 21, 2014 4:27 PM

There's a very large Lay's facility west of Casa Grande, Arizona, that receives corn oil and other ingredients by rail, but as near as I know all chips leave in trucks because they don't go far enough away for rail travel.

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Posted by ndbprr on Tuesday, October 21, 2014 4:53 PM
Two disparite comments. My father in law was involved in building the worlds largest styrofoam cup plant that could produce cups for pennies compared to dollars. It never started up because shipping was the largest and controlling cost.
There is nothing purchased by the consumer in an aluminum can that costs more then the can itself. The can is always the higher cost and always will be.
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Posted by Norm48327 on Tuesday, October 21, 2014 5:45 PM

You mean the can is worth more than the beer?

Oh. The agony! Beer

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Posted by ndbprr on Tuesday, October 21, 2014 6:07 PM
Yep. The cost of aluminum rises faster then the product in it so it willl always be more expensive.. can stock is about the highest priced aluminum bought
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Posted by tree68 on Tuesday, October 21, 2014 6:10 PM

ndbprr
There is nothing purchased by the consumer in an aluminum can that costs more then the can itself. The can is always the higher cost and always will be.

The same is true of the paper cups used by the fast food joints for soft drinks (and coffee, for that matter).  That's one reason they allow free refills - once you've paid for the cup, they've made their money.  The coffee and soda is worth pennies.

It always tickles me when I ask for a large coffee cup full of hot water.  No coffee, no tea, just hot water - I generally have my own tea bag.  They almost always give it to me free...

One thing not mentioned in the potato chip discussion is the cost of the air they fill the bags with ("You mean that's all the chips I get?  The rest is air?")...  Whistling

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Posted by Norm48327 on Tuesday, October 21, 2014 6:35 PM

If they didn't fill them with air, you wouldn't get chips. You'd get crumbs. Crying

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Posted by cacole on Tuesday, October 21, 2014 6:54 PM

Norm48327

If they didn't fill them with air, you wouldn't get chips. You'd get crumbs. Crying

The "air" is Nitrogen gas, added as a preservative so the chips will stay crisp longer.  Also seals out humidity.

 

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Posted by Norm48327 on Tuesday, October 21, 2014 7:02 PM

Yes, but. (Sorry, just had to borrow that phrase.)

Air is 78% Nitrogen.

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Posted by Anonymous on Tuesday, October 21, 2014 8:50 PM

I like kettle chips......

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Posted by greyhounds on Tuesday, October 21, 2014 10:40 PM

Murray
I like kettle chips......

With beer in an aluminum can?

 

 

"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by railtrail on Tuesday, October 21, 2014 10:48 PM

Back on track here what is a winter freeze going to do to price of all my snack foods, Chips Crackers Cereal and beer. Not to mention that Cereal is way over priced. The Cheerio Plant in Buffalo gets there grain by ship longer freeze means that they have to use more expensive rail.

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