I’ve been living in the states (SF Bay Area) for a while now (moved from UK for work) and one thing has been bugging me. Why are food prices for some things sooo much higher, in particular produce (fruit and veg) and bread. Generally stuff is much cheaper here (even in the Bay Area, which is more expensive the most of other places in the states), some thing crazily so (Gas for example, which you’d think produce prices would depend on). So why is produce so more expensive ? esp. as Britian imports most of its food.
It’s not really higher- a quick trip to a Chinese or Mexican grocery will confirm this. It’s that in the average American diet produce is no longer a “staple” and has somehow managed to become a luxery (associated with health and leisure) and thus commands higher prices in the grocery stores where the average consumer shops. In markets where people still do their daily cooking using mostly fresh produce, it is a lot cheaper.
A good alternative to grocery stores (which have pretty nasty produce anyways) is to get an organic farm delivery basket- there are many out there, some rediculously epensive but most of them very extremely cheap. You pick them up at an appointed time at a neighborhood delivery location and they contain a week’s worth of fresh seasonal produce. Good stuff.
I would say that, I go to my local chinese supermarket pretty regularly. Its a bit cheaper for produce, but the produce is not as cheap as the other products I get there (relative to Safeway), but its still much pricer than the UK, also much lower quality (presumably because they can’t afford the kind of distribution network Albertson’s/Safeway have can to get fresh produce).
I’ve yet to find one that even remotely compares to grocery prices (South SF peninsula any suggestions 
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I think it has a lot to do with where you live, and where you shop. I’m not sure how much you’re paying for tomatoes or peppers, but chances are if you’re shopping at a grocery in the center city, you’ll pay more. A sprawling suburban chain market will be cheaper. A public market, where farmers rent stalls from the city or county, is cheaper still, but you have to get up early on a Saturday.
Welcome to the SDMB, and to the Bay Area, griffin1977!
Could you clarify whether by “South SF peninsula” you mean [list=a]
[li]The City of South San Francisco, which at the northern end of the Peninsula (just south of SF), or[/li][li]The southern end of the SF Peninsula (i.e. northern Santa Clara County, roughly including Palo Alto, Los Altos, and Mountain View)?[/li][/list] [I’m assuming you mean (b), but I’m not sure.]
saoirse has already mentioned Farmer’s Markets, but they’re not all early-morning affairs. In the summer months, the Los Altos (Thursday 4:00 – 8:00 pm) and Sunnyvale (Wednesday 5:00pm - 8:30pm) markets operate in the evenings and have live bands. Other “southern SF peninsula” Farmer’s Markets are listed here (Santa Clara County) and here (San Mateo County).
Alternatively, there are independent produce stores (i.e. greengrocers) such as:[ul]
[li]Sigona’s (locations in Redwood City and Stanford Shopping Center, Palo Alto).[/li][li]DeMartini’s in Los Altos.[/li][li]The Milk Pail in Mountain View (great cheese selection, always crowded!)[/li][li]The (relatively new) Wholesale Produce in Mountain View, just round the corner from the Milk Pail; less of a selection, but much less crowded, and in a historic Silicon Valley building (the site of Shockley Semiconductor Laboratory, the company that brought “Silicon” to The Valley!)[/li][/ul]The above places are open regular store hours, i.e. until 8 or so in the evenings. There are several more like these, but I’ve listed the ones closest to what I think is your location. They’re generally much cheaper than Safeway or Albertson’s.
There’s also Whole Foods, which has very good produce but it’s not cheap, and has a bit of a Posh Nosh air about it. When I do shop there, I always feel slightly impudent buying veggies whose lovingly-posted genealogy is more impressive than my own! 
It’s almost certainly down to supply and demand. In the UK, a loaf of freshly baked bread from Tesco’s is something that regular folks buy several times a week - hence the 50p price tag. In the States freshly baked bread* is viewed as a luxury item, only to be eaten on special occasions - hence the $3 price tag.
OTOH, some stuff like good quality staek is unbelieveably cheap in America - maybe you should use thinly sliced sirloin for your morning toast 
i.e. not Wonderbread or some similar abomination.