Monday, April 14, 2008

Food Prices On The Rise

Here is the article reporting this.

U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Let's see if we can parse this a little for our edification, shall we?

Gasoline goes up, food goes up. In fact, when fuel goes up, pretty much everything goes up. It's called "the cost of doing business".

As necessary goods become more expensive, consumers buy less expensive durable goods (like electronics) and unnecessary non-durables (like computer games and CDs). Naturally, non-durable goods will go up faster than durable ones. The reason is not elusive, durable goods have a slower turnover. They last longer, so there are less deliveries. So if there are less of those, there is most certainly less need for delivery truck fuel. You cannot fax a truckload of milk or bread. It needs trucks with gas and a set of hands to pull it off of the truck, so it can be put on the shelves, ready for purchase (before it expires).

But spoilage being what it is, there is a solution that is not popular in some circles. It is a solution that the environmental lobby has fought against tooth, gum, and nail. It may not be a long-term solution, immediate problems do not respond well to long-term solutions.

It's time to drill in ANWR and build some more refineries.And while we are doing this, we must be searching for viable alternative energy sources. it's time to stop talking about this, time to start action. And if Greenpeace is unhappy, so be it.


Rocket said...

Food prices go up. Biocarburants drive up the price of staple as more land is used for biocarbs. Africans go hungry and riot and the world is still stuck on biocarbs which will eventually need all of the farmland.

And French farmers still want their subsidies thus driving African farmers outside the envelop.

Go figure!

Don't have to be a genius to figure that one out.

Rocket said...

sorry I forgot to support my opinion

Greg said...

I doubt drilling in ANWR will do much to the price of oil.

You know who whines about the price of gas the most? The people who waste it the most. People who I see everyday drive to work alone in their 2-ton SUVs. They deserve the pain they're enduring.

People could also stop spending $5 for a cup of coffee at Starbucks, and make their own coffee. They could stop eating out at restaraurants. They could cut coupons. People don't do the little things to save money anymore. I re-paraphrase my mother: Americans don't know how lucky they are.

Greg said...

Speaking of the price of food, this is a good spot to remind everyone about Obama's position on the issue:

Speaking to small-town voters in Iowa last year, he asked, “Anybody gone into Whole Foods lately and see what they charge for arugula?”

Yeah, I'm sure Iowans can really relate, Obama! What a friggin' SNOB! lol....

Also, anyone catch the video of Hillary doing a shot of whisky with a beer chaser? Damn, I am loving the Democratic race. Best ever!

LASunsett said...


This cartoon addresses arugula.


This guy is the black John Kerry. And today, he had the audacity to mock those that say he is an elitist. Like have said before, with each veil that is pulled away, the picture is becoming clearer.

Greg said...

Yo Rocket, right on cue "foreign policy genius" has all the answers for the starving Africans.

Prepare to laugh/barf.

Rocket said...


Chirac gets religion once he is out of office. If I remember correctly he defended the Common Agricultural Policy (CAP) vigorously. (meaning French farmers subsidies)

Plus he says in Le Monde

"Il nous faudra, demain, nourrir 9 milliards d'hommes"

What about the women? A macho till the end he will be.

Rocket said...

If this ever comes to fruition you can write off biofuels bullshit for 50 years

get in on the action. Share sign - PBR PETROLEO BRASILEIRO (NYSE)