okmatewanker

I'm not a farmer, I'm not a baker, I'm just a bread eater, but even I knew that 1kg was way too much wheat for a single loaf of bread. Turns out, yup. 1kg makes 2 loaves.

How does that change things? Well it means a loaf of bread contains 12.5p of flour, not 25p. So, instead of a loaf from a grocery store being about 5x as much as the price of the flour it contains, it's 10x as much.

Having said that, This isn't just a "capitalism" thing. There are many steps between the farmer selling raw wheat and a loaf of bread appearing on a store shelf. Many of them are unchanged since ancient times. I'm sure baker in the Middle Ages charged enough for his loaves of bread that he'd make a reasonable profit and that was centuries before capitalism was a thing.

In the modern world there are different facilities for every step. There's transportation which costs something at multiple stages. There's winnowing and milling the flour. There's buying and shipping the other ingredients. There's mixing the dough. There's baking the dough. There's packaging (and possibly slicing) the bread. And finally, there's the grocery store. To be useful, a grocery store basically has to be in a built-up area, which means high real-estate and related costs. It also needs to make enough margin to pay people to stock the shelves and cashiers to sell the loaves. The only truly modern part from all that that didn't exist in the Middle Ages is sales and marketing. Paying to send out emails or a flyer or whatever to advertise their items. My guess is that most of those steps operate on razor thin margins and make up for it by doing huge quantities.

Now, it's true that the system has flaws and inefficiencies. One glaring example is the lack of competition at many stages in many countries. In Canada, there are so few grocery store chains that the existing ones were able to literally fix the price of bread. So, of course when that happens both customers and farmers get squeezed.

I wonder if there ever was a "golden age of farming" when farming was a comfortable lifestyle. It seems to me that it has always been a very difficult career. If anything, it's probably at its best now under "capitalism". That isn't to say it's an easy job now, just that as difficult and stressful as it is now, it was even worse in the past.

It would be interesting though, just as an intellectual exercise, to imagine a perfectly fair world to figure out what the perfectly fair ratio is between the price of wheat and the price of a loaf of bread on the store shelf. If everybody were paid the exact same rate for their labour, and there were no excess profits generated that went to owners / landlords, how much of the final price of a loaf of bread on a store shelf should come from the raw ingredients of wheat, water, yeast, oil? How much goes to the baker? How much to the delivery drivers? How much to the shelf stockers and cashiers? Imagine it's a wood-fired oven, how much of the price of a loaf of bread goes to a lumberjack, even though their involvement in the whole process is really indirect?