okmatewanker

And items like Bread and Milk are commonly loss leaders - their priced at a loss or a minimal profit margin by the larger retailers that can afford to make a loss to profit richly elsewhere.

Staples like bread and milk are highly price competitive because there is so much choice - choice in brands but more importantly choice in which supermarket customers go to.

That price pressure goes down the entire production chain. Big companies like Warburtons and Hovis can still profit asbthey benefit from economies of scale, as do the supermarket chains. Big farms also benefit from economies of scale to profit. At every level the small players - farmers, independent bakeries and small retailers struggle to make any profit at all. And at every level wages are kept down.

This is capitalism.