FLA DUers, an economics question for you, please.

[mlawson]

I was in FLA (Cocoa) over the holidays, for the first time since some lost spring break, back in the 1970s. Anyway, expecting some great buys on garden fresh local produce, I brought along a chest-sized cooler to bring back homegrown tomatoes, etc., to NC. What a surprise I had in store!!

Tomatoes in produce stands were $1,59 a pound, and not fit to eat (gas ripened, hard). In the Publix supermarkets, they were even higher, but no better. It was the same for most all produce, even the citrus (69c for one grapefruit??). I don't get it, and here is the reason:

Here in Asheville, I can get FLA grown tomatoes (GOOD ones), for 99 cents a pound, and often for less. Grapefuits are 3 for a dollar here, and they are good ones. *Most* all our produce here is for less than I could find while in FLA. This doesn't make sense; factoring in transport costs, this stuff should cost at least half again as much here. And it's not cost of living, either: other products cost roughly the same here and there.

As an economist, I am at a loss for a reason. Well, I do have one off-the-wall possible explanation, but let's see if anyone hits it first. Thanks!!!

[wuushew]

1. Maybe Jeb is taking a little off the top?

n/t

[camero]

2. Absolutely no regulation

All you need to do is look at the insurance, utility, and phone industries to determine that the pricing is not consistent with demand or cost of living.

If complaints are filed the government often sides with the business over the consumer.

Double markups are the norm here pretty much.

[mlawson]

3. But why only produce?

Other prices were pretty much the same as they are here, even in the supermarkets. If most all the produce is shipped out of FLA, it would create a shortage, and prices there would rise. But why would that same produce then be cheaper here?? It just doesn't make sense. Our food prices here aren't regulated either.

[camero]

6. This is a highly tourist state

So prices are higher to take advantage of the tourists. I am just guessing. It boggles me too. Alot of things are the same or more expensive here but the wages are lower. So your dollar doesn't go far.

The other thing that gets me is gas prices out West. Most of the refineries are there but the price of gas is higher. Probably because of taxes.

[seasat]

4. Depends on where you look for the produce.

There is a whole block of Fruit Stands off the beaten path here in St. Petersburg, FL that have great produce at reasonable prices. On grapefruit, I could give you bushel. I have 3 trees in my yard and could fill a couple of pickups with all my grapefruit.

[mlawson]

5. Yeah, I might have been on the wrong coast for that.

I did get to pick grapefruit from a tree in my cousin's yard. My question is an economic one; I can't stand something that makes no sense.

[seasat]

8. You might have been around a tourist area.

You notice a big difference in prices when you go from a high tourist region to the rural areas. I remember when I was working in MD, I ran into a trucker at a bar who told me about how a lot of those fruit stands work. He would run down to GA and truck in fresh peaches for a guy that ran a chain of fruit stands around Waldorf. Very little of the produce was locally grown. They actually got their produce from the same places as the grocery stores and charged more for it since it was "fresher". He said the guy running the fruit stands was making a fortune off of people driving out from DC. The best bet is to find out where the local farmer's market is located. You'll find fresh cheap produce there. The fruit stands are sometimes a scam.

[camero]

7. My neighbor does that for me

In Dunedin. He has a grapefruit tree in his back yard.