The Incredibly Non-transparent Price of Butter and other Dairy – Part 2

 the price of non-organic butter at Agata and Valentina on University Pl in NYC is $.50/more for non organic and $2.00 more for organic (Sunday 11/16) than in the NJ suburbs

  the price of organic butter at Dean and Deluca on Prince Street is only $1.01 more than the price of non-organic butter in several grocery stores in the suburbs of NJ.  (Wednesday 11/12)

There seems to be an awful lot of talk about transparency these days, no?  Or, should I say, the lack thereof?????  It would seem that I have wondered into the murkiest of waters in trying to understand the pricing of various food commodities in your local grocery store – something that we are all concerned with, right?  What happens when we all just take for granted the price of something and say, well, that’s what it is, so either I want it/can afford it or not?  But, what happens when something seems really to be inexplicable – and maybe seems just a tad bit unconscionable????  Wouldn’t you be urged on to try to understand?  Something in my mind constantly tries to relate things to one another.  Right now though, the price of a pound of butter seems to be out of whack in relation to say, a pound of beef – I can buy a prime sirloin steak at Barth’s Market for example for $7.99/lb.  And the price of butter is basically the same.  Ok? Well, maybe, maybe not………..

I confess to saying that I have not really been all that interested in knowing the mechanics behind product pricing in the grocery store in the past.  I try to be thoughtful and careful and look always for quality.  And, I do use a lot of butter in my house.  Is the price of butter elastic or inelastic in general? (Actually, I think the proper question is, is demand for butter elastic or inelastic?)  Further, wouldn’t one producer try to sell more by lowering their price?  If not, why not?

Generally speaking, when I go shopping I find the price of particular commodities on a unit cost basis to be astronomical, don’t you?  It sort of seems like basic groceries are in the realm of precious stones and metals these days………… Yikes!  I have continued on my little venture to try to understand what is going on in the marketplace out there.  I’m continuing to gather information.  Everyone is getting ready to start shopping for their holiday meals, right?  Yikes again – when you add up the cost of a turkey, some potatoes, milk, butter, vegetables and such – wow – it’s really a lot of, um dough!

Does it make sense to anyone out there that the price of butter in a small upscale grocer in NYC is 50 cents a pound higher than in the NJ suburbs?  How about organic butter being $1.00/lb more in NYC than non-organic butter in the NJ suburbs?

Ok, so I will bring you up to date on my foraging around about the price of butter in these parts.  Let’s just say that I believe things to be askew here and actually I suspect something in the order of price fixing to be going on.  It seems incredible to me that the price of a pound of butter is exactly the same across brands, between stores and only marginally different in New York.  In fact, I have found the price of a pound of organic butter to be only $1.00 more in New York City’s high end small grocers than the price of a pound on non-organic butter in Morris County, NJ.  Typically, as we know, groceries in New York City are a lot higher than in the suburbs.  And, as we saw from my post last week, the farther we get away from the New York Metropolitan area, the lower the price will get.

I have asked for input from various places and the only place that has responded to my inquiries is the very nice folks at Cabot Creamery.  I thank them for that and feel heartened that someone out there is willing to be open and “transparent”.  I have also reached out to Kings Supermarkets and the State of New Jersey, the latter of which I intend to call today.

Over the past few days I have canvassed a few stores in New York City and more here in NJ.  It would appear that the retail price of butter is curiously similar or the same, not only across stores but across state lines, where typically the price of groceries in New York City is much higher than in NJ.  I also plan to visit Trader Joe’s and Costco.  And, I will return to Whole Foods, Stop and Shop and Shop Rite.

 price of butter at Kings in Gillette, NJ. is exactly the same across brands – $6.99/pound. (Sunday 11/16)

from Kings on Friday 11/14:

Hi Marianne,

Thanks so much for getting in touch. Butter pricing on the open market does not immediately effect the pricing at retail. As of today, butter manufacturers have not reduced the cost of butter.
Cabot butter is no longer available from our current supplier. Stores are selling through their remaining inventory.
Cordially,
Antoinette Jones
Kings Customer Service

So, this email would infer that the “problem” is more about the manufacturer (wholesale cost) than retail – and so, more investigation is required here.

I have reached out to some of our politicians to see if I can get some help in shedding light on the subject.

I will keep you posted.

 $7.99/lb price of organic butter in Gillette, NJ (Sunday 11/16)