In Italy, Pasta Up When Wheat’s Down

We have often discussed the great chasm between the cost of farm commodities and food at the retail level. And we have talked about the many other costs that go into food. A recent story out of Italy helps drive this home:

(ANSA) – Rome, August 20 – This year’s extraordinary rise in pasta prices has been even higher than previously thought, the Italian Treasury said Wednesday. But the price of wheat, which is used to make pasta, has dropped almost as sharply, a top farming association said.

While the price of pasta has jumped 30 percent in the first half of 2008, the price of durum wheat has fallen some 25 percent.

The story also notes:

Coldiretti, said the rise in price from farm to consumer was a whopping 369%. There was ”no alibi” for not dropping the prices of pasta and other staples like bread and milk, which also showed huge increases, it said.

Coldiretti blamed ”distortions and too many steps from the farm to the table” for the massive discrepancies. Milk was 241% dearer [more expensive} in shops than it was at the farm, while bread was an astonishing 1,325% dearer.