Why is the Cost of Food So High?

Prices are rising and supplies are tightening, for aand demand, the equilibrium of good and ill also
number of reasons. We are seeing food pricesdepends in part on governments. Strained supply
increasing at their highest rate in years. The priceat home and abroad is driving up food prices.
of food is subject to the cost of production andWheat is seeing its tightest supply in the United
the recent concern of rising oil prices and fertilizerStates since 1946, and soybean supplies also are
prices is having a big influence. The increasing priceon rocky ground. Summing it all up, demand is
of food is moving at a faster rate than it's risensoaring, supply has dwindling, and food is being
since 1990, at 4 percent in the United States.poured into the gas tank. Can we honestly believe
Costs for raw materials for fertilizer, not includingthat in the long term, thriving farms and open
oil, have themselves been increasing as demandmarkets will provide a secure food supply?
for food increases. As we all feel the pinch at theIn general, food prices in the stores are much less
pump with the price of oil rising, so do the costsvolatile than prices at the farm-level and tend to
of planting, harvesting, and delivering food.rise at a much smaller rate that the change in
American families, who are already strapped byfarm prices. Saying that overall rising food prices
rising energy costs, are being hit again in theirare responsible for the shortages doesn't make
household budgets as food prices increase at thesense, considering that there would not be enough
fastest rate since 1990.rice regardless due to climate and poor
Americans are reeling from sticker shock at thegovernment practices in the countries like the US
pump while government scrambles to avert athat are having shortages. What can we do to
fast-moving crisis before it spins out of control.stay in control when food prices are rising? Here
Global food price hikes are becoming a crisis.are some possibilities, eat more leftovers, cook
These and other conditions have been referred tomore at home, take meals from home, stock up
a "perfect storm," by United Nations World Foodon good deals and make a plan to build up an
Program executive director Josette Sheeranemergency food storage plan.
recently stated.What Can We Do to Help?
Energy plays its part too. Increased costs forWe are interested in what you would like to have
transportation, labor and energy have drivenus find and make available to you. Your
cereal products alone up 6% in recent months.suggestions are welcome and encouraged.
Energy costs hit us coming and going, it costsContact us with your requests and suggestions
more to process food and then it costs more toand we will do our best to find the resources for
move it out to the market. Energy is going toyou at an affordable price.
continue to get more expensive, not less. EnergyWe have just made some updates to our
costs are the largest single force driving inflation.website. Visit us and see what's new. Some
Supply and Demandsuggestions have been implemented and there
Some once said, "Supply and demand is not a law,are more to come. Thanks to everyone who has
it's a policy" Even though the cost of food isgiven us suggestions or has left us food storage
controlled by fundamental constraints of supplytips. Keep them coming!