CommSec Ross said there are 2/10 cent steel in a soup can and 3/10 cent aluminum in a coke can.
“All this hysteria is a lot to do about nothing,” he said. The cost of items such as Campbell’s Soup cans and Coke cans will increase by less than a cent, he added.
The cost of the
can won't change much, but
the PRICE on the shelf will go up noticeably.
The machinery that makes the cans and fills them will cost more. The machinery that prints the labels will cost more.
The farm machinery that plants and harvests the food materials will cost more.
The trucks that move the cans will cost more because of steel costs.
The tools that fix all that machinery will cost more.
The steel shelves will cost more.
The steel in the construction of the packing houses, the food factories, the distribution warehouses, and the supermarkets will cost more.
By time you dial in all the costs going into the products and getting them through the manufacturing and supply chains,
the PRICE will add up because it is multiplicative, not merely additive. When the food is more expensive to produce, the food cost goes up which raises the cost from the food factory to the distributor by a percentage because it costs and prices and profits are calculated on dollar volumes, not unit counts. The cost to the retailer goes up when the distributor raises prices.
Until proven otherwise, we have to take the position that Ross knows this and was deceiving the public and using the taxpayers' dimes to do so while being paid salary.
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