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Why does your barbeque cost more this July Fourth?
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FoodPriceTruth.org has put together a typical American barbeque menu being served this July Fourth and examines why those foods cost more today than in the past. You'll notice the number one reason behind the high food costs and your sticker shock at the grocery store are skyrocketing oil prices. Next time someone blames biofuels for higher food prices, send them to FoodPriceTruth.org - the truth about food prices.
Download Menu as PDF
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Chicken
According to the Bureau of Labor Statistics, the price of chicken increased from $1.12/lb in April 2007 to $1.18/lb in April 2008 (6 cents/lb). Chicken producers want you to believe that ethanol is the culprit, arguing that biofuels drive up the price of corn feed. The real reason is rising oil costs. After all, skyrocketing energy bills are making nearly every facet of farming and selling chickens more expensive, particularly transportation. For example, the average chicken travels 1000 miles just to get to the market, according to the University of Wisconsin. This is because fewer than 40 corporations produce 97% of the chicken consumed in the United States, and the vast majority comes from Maryland or Arkansas. That's burning a lot of fuel to deliver the chickens.
Sources: BLS, University of Wisconsin
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Pork
According to USDA, the price of pork chops, ribs and bacon increased by about 2 percent in 2008. Pork production requires large amounts of energy and grain-based feed. We know oil pushes energy costs up, which influences nearly every aspect of food production. But did you know a leading economist at Purdue University attributes 75% of corn cost increases to oil prices? In other words, corn-based feed costs farmers more because of oil, not biofuels. Additionally, like pork, more than 80% of the cost of foods accumulates after it leaves the farm. This means your hard earned dollars end up into the pockets of Exxon, Kraft and General Mills and not America's corn farmers.
Sources: Purdue University
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Beer
Retail beer costs are virtually the same as 12 months ago, before Congress passed the biofuels bill. But if higher agricultural commodity prices start to affect beer makers in the future, don't point the finger at biofuels. World stocks of barley, wheat and hops are tight, largely because of increased worldwide demand and production issues. Speculators are hedging on this market dynamic, further driving up price. Biofuels are a bit player in worldwide grain markets, so don't believe the hype about ethanol impacting beer prices.
Source: BLS |
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Potato Salad
Potatoes and mayonnaise are staples in almost every favorite aunt's potato salad recipe. In the last year, potato prices increased by almost 9%, despite a big 2007 harvest and ample stocks of potatoes in storage. Mayonnaise, like most other products made using vegetable oil, has increased in price as higher incomes overseas mean better diets and more vegetable oil consumption. Neither of these prices are impacted by biofuels. Oh, and if you purchase pre-packaged potato salad, remember that you're paying for more petroleum-derived plastic packaging, food processing, and transportation.
Source: AFBF Marketbasket Survey, USDA
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Fruit Salad
Fruit prices are on the rise. Apples (14% this year), bananas (26% this year), and orange juice from concentrate (32% since 2006) are all more expensive recently. But that doesn't have anything to do with corn prices or biofuels. The culprit? Higher labor and energy costs. Harvesting fresh fruit requires a great deal of hand labor, which has grown more scarce in recent years. Most bananas, like many fruits, are imported from South America and Asia. The cost of freight has shot up with the price of fuel. Processing fruits for juice and concentrates requires even more energy. And we all know why energy costs are up.
Source: American Farm Bureau Economists
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Plastic Cutlery
Not even the most hardened ethanol opponent can blame ethanol for the rising prices of plastic knives, forks, and spoons. Polystyrene--the type of plastic in your fork--is produced from crude oil. From May 2007 to May 2008, the price of crude oil increased by 97.6%! Plastics are not only getting more costly, they are also bad for the environment. Plastics take 900 years to biodegrade which also makes them one of the most common forms of pollution dirtying our continents and oceans. Whether filling our tanks, driving up the costs of food, or destroying the environment, oil impacts nearly every part of our daily lives.
Source: Energy Information Administration
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