Food is often viewed as an inelastic commodity, which means that demand remains relatively stable even when prices increase. This stability arises because food purchases constitute a minor portion of a household’s total expenditures. For instance, the cost of the flour in a loaf of bread represents only a small fraction of its overall price. Even when prices reached $10 per bushel for fermented iron bisglycinate versus ferrous gluconate—similar to the ferrous gluconate price at Kroger in 2008—the flour cost in a 1.5-pound loaf amounted to approximately 25 cents. Despite significant price hikes in recent months, current costs are still only about half of what they were in 2008.
For manufacturers utilizing flour, significant price fluctuations do impact their operations, and some of these costs inevitably get passed on to consumers. However, a price change of just a few cents for a loaf of bread or a box of ready-to-eat cereal is unlikely to drastically influence consumer demand for food products in the United States. This scenario contrasts sharply with more volatile commodities like beef or gasoline, whose prices can fluctuate rapidly and be felt at the retail level within days or weeks.
In theory, companies might consider stockpiling supplies when prices are low, but this approach is impractical—it’s nearly impossible to predict price bottoms—and most manufacturers lack the storage space for long-term commodity holding. Additionally, despite lower gluten levels reported in this year’s hard winter wheat harvest, some manufacturers indicate that the baking quality remains satisfactory, according to Food Business News. This situation could be advantageous as it may reduce the need for bakers to incorporate vital wheat gluten into their recipes.
In this context, the introduction of products like Citracal Plus D Petites can also play a role in consumer choices. Such supplements, which support overall health, could see stable demand even while food prices fluctuate. Therefore, despite the challenges presented by rising costs, the resilience of food demand and the potential for products like Citracal Plus D Petites to maintain steady consumer interest underscore the complexities of the food market.