Economy: Food that is good for the soul... and the bottom line

Day 891, 11:51 Published in Canada Canada by Alias Vision

We finally come to food. Every citizens needs it. Its cost, when affordable, often translates into greater spending and economic activity. Combined with gifts, the higher the quality of food, the better the wellness. The more healthy a nation, the better it does in all spheres of New World life.

This snapshot was taken on the morning of Day 889. All numbers are based on job offers in the Canadian market for salaries and prices on both the domestic and foreign exchanges for grain and food. It assumes the worker maintains a wellness of 90 or higher and that the company is operating at full capacity. In other words these are ideal scenarios for reasonable owner expectations.

Food relies on grain. As we saw yesterday, the state of the grain industry in Canada is problematic. The manpower cost in land is simply too high in Canada to adequately sustain the sector. The end results are grain prices that are 23% higher than what can be found on the international markets, opening the doors to ample black market activity.

The best value for your productivity dollar in the manufacturing industries is a skill 3 worker ($0.43/production point). However, after careful analysis, it was concluded that you could be even more productive with some juggling of skill levels and q-levels.

Once upon a time, one could thrive with little food of low quality or even no food at all. Now that is not the case. As such the evolution of prices and affordability of food has changed.

Q1 owners, as has been consistently shown through all economic models so far, struggle. Even the best run companies, buying Canadian grain, will operate at a loss. We are talking of about $12/day or up to 40 food units of pure loss.



Q2 owners on the other hand already see a healthy profit of $32/day. This may be because gifts are still relatively expensive and therefore you get almost the same value for your money by buying higher quality food for new players.

Q3 and Q4 owners see modest increases in their bottom line before another big jump at the Q5 level. Here owners that managed to invest the required gold are experiencing profits in the range of $117/day, over 100% jump in profits. At these prices we assume it means a fair amount of market demand and supply that is lagging behind.

Q-level, gold revenue/day
1, -0.38
2, 1.05
3, 1.25
4, 1.83
5, 3.76


As mentioned earlier, there is a 23% discrepancy between the Canadian grain offer and the international one. That means that food companies that do not mind buying outside our borders stand to profit even more. When doing so their numbers improve to the following:

Q-level, gold revenue/day
1, -0.18
2, 1.18
3, 1.34
4, 1.89
5, 3.84


Put in perspective, that is about 1 extra gold a week just on the grain exchange.

In conclusion, the food sector could in theory support the grain industry if it so chose... the truth though is that food GMs are entitled to expectations of profit just as much as any other sector so why should the burden be placed squarely on their shoulders. Some may choose to buy Canadian and take the loss but in the current context it is just so easy to import.

Canadian citizens have happy, full bellies and so do the business men that feed them.

Previous economy (industry) articles:
Grain
Gifts
Diamonds
Weapons
Houses
*economic numbers in the New World change daily, the above statements may be slightly out of date. Thank you for your understanding.