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post #1 of 12 (permalink) Old 02-16-2011, 12:30 PM Thread Starter
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Food and NBC

According to an NBC news blurb on the Weather Channel, food prices have increased 29% the last year. Of course, it's been blamed on the weather. Yep, weather has a lot to do with it, no doubt.
That's rather convenient though, blame it on something no one has any control of. Seems someone has forgotten the cost of fuel, and what has happened there during the past year. Isn't that something that "could" be controlled?
Most of us here know, the world runs on diesel.
Just an observation from this morning.

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post #2 of 12 (permalink) Old 02-16-2011, 12:47 PM
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Re: Food and NBC

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According to an NBC news blurb on the Weather Channel, food prices have increased 29% the last year. Of course, it's been blamed on the weather. Yep, weather has a lot to do with it, no doubt.
That's rather convenient though, blame it on something no one has any control of. Seems someone has forgotten the cost of fuel, and what has happened there during the past year. Isn't that something that "could" be controlled?
Most of us here know, the world runs on diesel.
Just an observation from this morning.
This is in more direct correlation to food supplies. I will gave you a todays perspective on how we are sitting: 1 year ago our corn supply was 1,708 million bushesl, Today we are at 675 million bushels and Africa and China have been busy buying our food . We are running slim on food supplies right now. Also we only have a 34 day supply of Potatoes as we speak worldwide. So it is crucial that every part of the world has a good growing season, cause if anything in those chains are affected, you will see total chaos and extreme price fluctuations. Wheat is at a major shortfall. Russia who the world depends on so much for flour, has virtually no crop. To add insult to injury, the U.S's major wheat producing states are faced with a devasting wheat lost due to freeze injury (no snow cover, but record low temps) and now ice from the latest storms in Kansas, Nebraska, Oklahoma, and Colorado (our major wheat producing states. I hope this helps, but it does pay to stay informed.
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post #3 of 12 (permalink) Old 02-16-2011, 03:26 PM Thread Starter
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Re: Food and NBC

Ya, that's pretty much what was said by NBC as well, and I have no doubt weather plays a huge part, I came from a farm family myself. It could be possible to narrow it down to just the weather on the latest news, and may be I should have worded things differently. What I was trying to bring across, was the just as big, if not bigger part, fuel costs play. Could just be my own paranoia, but it just didn't sit well with me, like the whole story wasn't being told. The other two threads on oil got me thinking about it. Since oil accounts for more than just fuel, such as fertilizer and lubricants, it would be interesting to see how food prices were affected, in conjunction with the weather.
I don't know, possibly this whole thread doesn't make sense.

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post #4 of 12 (permalink) Old 02-16-2011, 03:45 PM
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Re: Food and NBC

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Ya, that's pretty much what was said by NBC as well, and I have no doubt weather plays a huge part, I came from a farm family myself. It could be possible to narrow it down to just the weather on the latest news, and may be I should have worded things differently. What I was trying to bring across, was the just as big, if not bigger part, fuel costs play. Could just be my own paranoia, but it just didn't sit well with me, like the whole story wasn't being told. The other two threads on oil got me thinking about it. Since oil accounts for more than just fuel, such as fertilizer and lubricants, it would be interesting to see how food prices were affected, in conjunction with the weather.
I don't know, possibly this whole thread doesn't make sense.
Trust me it makes perfect sense in my mind. Florida crops have endured several frost already, Texas has, Northern Mexico has. There are so many things intertwined and interrelated that contribute to these price swings.
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post #5 of 12 (permalink) Old 02-16-2011, 06:15 PM
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Re: Food and NBC

Binder is making sense here. Weather is the biggest factor. Demand is so close to supply that small impacts in production can have a huge impact on price.

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post #6 of 12 (permalink) Old 02-16-2011, 07:43 PM Thread Starter
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Re: Food and NBC

Yes, he is right, can't argue there at all. What I'm asking is how oil ties in with it. It has to, due to equipment, tractors, trucks, trains, all use diesel. Diesel has increased very measurably through 2010, and the farmers, shipping companies, railroads aren't going to eat the increase.
The news blurb blamed it ALL on the weather, shouldn't transportation costs be figured in as well?
For some reason this just isn't coming out right.

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post #7 of 12 (permalink) Old 02-16-2011, 07:50 PM
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Re: Food and NBC

I think the answer is that weather impacts food prices on the commodity level, while fuel prices impact more on the local level. Or, We all pay more for food if the supply is less than demand, but not all of the extra fuel costs are passed onto the final consumer.
Or I could be wrong.
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post #8 of 12 (permalink) Old 02-16-2011, 08:07 PM
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Re: Food and NBC

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I think the answer is that weather impacts food prices on the commodity level, while fuel prices impact more on the local level. Or, We all pay more for food if the supply is less than demand, but not all of the extra fuel costs are passed onto the final consumer.
Or I could be wrong.
You and Johnday are both right. The transportation cost are already included or passed onto the consumer, cause the wholesaler is passing it along to the grocer, and the grocer to the consumer. So yes, if fuel cost go up as they have, the price will likely go up, but it is so small that the consumer barely notices. you can go to National Farmers Union (National Farmers Union).
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post #9 of 12 (permalink) Old 02-16-2011, 11:18 PM Thread Starter
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Re: Food and NBC

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You and Johnday are both right. The transportation cost are already included or passed onto the consumer, cause the wholesaler is passing it along to the grocer, and the grocer to the consumer. So yes, if fuel cost go up as they have, the price will likely go up, but it is so small that the consumer barely notices. you can go to National Farmers Union (National Farmers Union).
Now we're on the track I was headed for.
Binder, I went to the website you gave a link for, spent some time there, but didn't really see what I was looking for.
Is there a rule of thumb, similar to a fuel surcharge, that the cost of transportation would be passed on? I'm using transportation instead of fuel, I think we all know that would include fuel.
I guess after being involved in the transportation industry, I'm just trying to get some sort of a handle on how the transportation/fuel costs are passed on. Obviously, transportation isn't as expensive as I'd thought. I likely should have asked that while I was still driving!!

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post #10 of 12 (permalink) Old 02-17-2011, 12:43 PM
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Re: Food and NBC

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Now we're on the track I was headed for.
Binder, I went to the website you gave a link for, spent some time there, but didn't really see what I was looking for.
Is there a rule of thumb, similar to a fuel surcharge, that the cost of transportation would be passed on? I'm using transportation instead of fuel, I think we all know that would include fuel.
I guess after being involved in the transportation industry, I'm just trying to get some sort of a handle on how the transportation/fuel costs are passed on. Obviously, transportation isn't as expensive as I'd thought. I likely should have asked that while I was still driving!!
I am going to try and find out more. I have a good friend who is a truck driver for Roundy brand grocery stores. He drives tractor trailer and hauls the food items we buy in the store. I will see if he knows anything on this? I will get back to you.
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