Wednesday, April 27, 2011

oil and veg inflation

A commentator on  NPR allowed that he did not feel the effects of inflation were being measured accurately because the so called "volatile" indexes for food and fuel were not being taken into account...duh!   We live in a society addicted to cheap oil and we take it for granted, until the price shoots up and all the expenses cheap oil holds down come to light.  As a produce broker, and a tiny farmer, I can tell you petroleum is intimately involved in every aspect of farming.  From the oil required to deliver the seed, heat the greenhouse, run the tractor, produce the fertilizer, harvest and cool the crop, produce the packaging for the crop, move the crop to market, and on and on.  The cost of sending a tractor trailer load of produce from California to Boston has gone from $5000. to $8,000. in the last three months and some experts are predicting the price will rise to $10,000 or more this summer.  At that point the transport cost will exceed the cost of most of the produce being transported! These are  stuff of nightmares for politicians.

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