Dan (the food industry CEO)

And so you have a higher retailer level burn rate on those things because the typical person only buys two or three days worth of groceries at a time.

If everyone bought once a month, technically the burn rate's the same, but the stress on the retailer's less.

Right.

So, yes, you're correct in your assumption there.

Unless you get into a last spring type scenario where everyone does it.

But the further out the purchases are spread and the bigger the purchase is, retailers would never tell you this because...

Well, they have their reasons, but retailers will not tell you this.

But what happens is if ordering, if the retailers are able to order larger quantities of things less frequently, it's cheaper for them.

So if I can order a truckload of peaches, right, and I can bring it to my distribution center, that's a lot cheaper for me than if I bring in a quarter truck and I have to find something else to fill in the gaps.

So, with the retailers increasingly going to less of a just-in-time delivery system after COVID, which is a great thing that came out of COVID, was retailers are building warehouses sporadically, and they are keeping a little more in their stores than they used to.

So, in that timeframe, if you're buying decent-sized quantities that allow them to calculate that and order large

over what they've had to do specifically because freight rates have gone through the roof.

Five years ago, that would not be the case.

Freight was cheap five years ago.

But now what's happening is the cost-saving benefits of the just-in-time delivery system are being overshadowed by skyrocketing shipping and freight.

So now it's not nearly as profitable and it's not nearly as cost-saving as it was a few years ago.

well we know there's truth in the headlines we know there's untruth uh so inflation and shortages let's just where give us the lowdown on that dan sure yeah well outside of macro level inflation that we're seeing right the cpi and things like that within the food industry uh

Producer price inflation in particular is nearly doubling what the government's official numbers for CPI is saying.

So producer price inflation

was up seven point three percent in June, which is the biggest compared to last year, which is the biggest year over year increase on record.