RK ARCHIVE - A Gallon of Gas or A Loaf of Bread?

While the national obsession is all about the continuously rising oil prices, which of course turn into rising gasoline prices, the food markets have been steadily, and in some cases not-so-subtly, rising as well. Just a sampling of recent woes in Boulder, Vermont, Texas, Oregon, Cleveland, and New York in the past month. How about commentary from Houston? This could go on and on - you just need a little time and Google.

Why? There are, as always, many factors. There are core supply (lower than normal in some cases) and demand (on the rise) problems mixed in with investors looking to commodities given the significant economic instability that we are experiencing and will likely continue to experience for quite a while.

On one side the food stocks have to be moved incredible distances and the increase in transportation based fuel costs is contributing to the overall increase in food costs. Given our current infrastructure there is no way around this problem. Long term, we could turn to regional and even local food supplies, thereby lowering the transportation cost component. But for now, our food prices have a not-insignificant oil price aspect.

On the other side, we've got the brilliant (rolling eyes) plan to feed our automobiles with stock that has been going to feed ourselves. Yes, I know, the base corn stock being used is not considered a human consumable, but it is livestock feed for some of our meat products. Plus, the land now being set aside for ethanol could be used to produce agricultural products that we can eat (clearly one of the factors behind the supply problems).

Our addiction to feeding our automobiles is not only hurting the environment, it's also hurting the economy and may start hurting our ability to feed ourselves.

Point? It all gets back to our addiction to gasoline and the consequences of that addiction. We need to make some serious progress toward a viable, sustainable, environmentally friendly, domestically produced alternative to gasoline. And fast. That alternative could be either a biofuel (NOT corn based ethanol) or alternate power plants (hybrids, electric, other?). Our government needs to stop coddling the oil and automotive industries and do what needs to be done - or we'll be forking over more and more dough to the monkey on our back.

Comments

or (citizenindy - 3/19/2008 4:44:52 PM)

People could start saying no to the staus quo and support other methods of transportation and food production. However there is no business model out there. The market demand is for oil or we have met the enemy and it is us.

Why isn't a shift occuring

I admit I have an economic bias but I think for most people it comes down to price

These emerging technologies are usually more expensive than the status quo. For example gas would have to reach over $6 a gallon for it to be worth it to buy a Prius over a standard compact. Prices in the grocery store would have to double before it would make sense for me to shop at a farmers market thats not even factoring in the limited selection and transport problem issue. To green over your house requires a hefty initial investment and costs aren't recouped until 10-20 years and most people in the current market move before then.

Call me a pesimist or a realist but until the cost issues are dealt with I see no change in the current status quo.

Agreed. (Eric - 3/19/2008 6:13:35 PM)

This is the sort of thing I'd like to see the government get involved in. Rather than give tax breaks to oil companies, tax them more and apply those funds to R&D programs. If the government foots the bill for expensive R&D, the costs to companies go down. If R&D is successful it'll bring a bigger bang for the buck - also making it more cost effective.

You're right, that if we keep up with the DIY method for individuals or corporations there just isn't enough incentive to change.

Too much emphasis on maintaining the status quo... (ericy - 3/19/2008 5:22:35 PM)

There are a lot of things that we are doing wrong that lead to the situation we are in. Vehicle choice is but one small piece of the whole puzzle. If we continue to promote sprawl and marathon commutes, then more efficient vehicles aren't going to make much of a difference. Unfortunately sprawl isn't something we can quickly or easily fix.

There are a lot of people who have given thought to finding gasoline substitutes that we could use in our existing rolling stock, but so far nobody has found anything. Some have even concluded that no such substitute exists - at least not something that we can scale up to provide the billions of gallons per year that we consume.

another aspect to the cost is labor (Alter of Freedom - 3/19/2008 5:33:32 PM)

One significant aspect that gets overlooked when talking about food is its transportation costs relative to the trucking industry which has seen its ranks gorw smaller thus driving up wages in that industry. Remember CSX (the railroad company) can transport some eighty freight cars with only two people thus take a look at the profits lately as they transport coal, chemicals, feed etc. There is a shortage of long haul drivers coupled with the price of gas creates this issue of rising shipping costs passed on to the consumer.

Also, environmental activists who ignored the warnings regarding ethanoyl are taking it square on the chin as well. As many farms in Iowa for example converted to ethanoyl which takes alot of energy by the way to create aaway from staple food grain crops it also contributes to lower supply not to mention rising use of water by these ethanoyl plants. While the price of ethanoyl has leveld out somewhat the result of lower staple crops of corn impacts consumers as well.

FYI if the trend continues the same people who predicted these impacts when the ethanoyl craze took root are saying that unless something is done we will begin to buy more wheat from other countries than we produce here at home.

Another shameful byproduct of shortsidedness in my opinion.