Anyone that has recently been to the supermarket or bought lunch at a local deli can attest to the fact that prices for food have been rising, seemingly faster and more so than other goods. There are a plethora of reasons behind this rise. First of which is the upsurge in demand for meat from the increasingly affluent middle class of China and India stemming from recent booms in their economies. According to an article from The Economist, "it takes three kilograms of cereals (grain) to produce a kilo of pork, eight for a kilo of beef". So if you do the math, more meat consumption = a lot more grain consumption. A second factor for this "agflation" is crop failures due to natural calamities, droughts (Australia) and cold, rainy weather during the growing season, and political upheavals in emerging countries (Kenya). Although these two factors have had significant impact on the price for food, the dominant cause for this current rise is OIL. Oil's influences on food prices have been unproportionately two-fold. The obvious reason albeit the lesser influence is the increase in transportation and production costs due to record high gasoline and oil prices (crude oil closed at $100/barrel today). If it costs the producer more to process and package the eggs and to ship them to your local supermarket, naturally, some if not all of this expanded cost will be passed to you, the consumer. Finally, the second and foremost reason for such lofty food prices is the use of food as a direct substitute for oil."Food as Fuel", a phrase when used 5 years ago would have unmistakably meant fuel for the human body with prompt reference to the iconic food pyramid, has taken on a whole new meaning in 2008. Common feedstock such as corn (maize), sugar cane and switch grass can be converted to biofuel, specifically ethanol, using fairly simple chemical processes (sugar fermentation, distillation, dehydration and denaturing). The apparent appeal of biofuels (reduction of greenhouse gas emissions and a solution to our "addiction" to fossil fuels), numerous government subsidies and farmers exclusively planting biofuel crops because of lucrative economic incentives (oil at $100/barrel) have greatly accelerated the decrease in world food supply.
I am not here to discuss the already controversial and much debated "Food vs. Fuel" argument because a simple Google search will show that there are a ton of articles and forum discussions written by people far more qualified on the subject matter. Rather I would like to talk about ways we can reduce the price of both of these scarce resources: food and fuel. When dealing with scarce goods, prices are governed by the law of supply and demand. In order to decrease prices, one must increase supply and/or curb demand. Since most of us do not own a farm or an oil field, lower prices can only be achieved by reducing consumption of food and fuel thus decreasing demand. Fuel saving tips abound throughout the web and instead of reiterating what has already been covered, I have decided to link a post from a fairly comprehensive fuel economy website and divert the rest of this post to reducing food consumption. Since food is now a direct substitute for fossil fuels, reduction of food consumption should impact both the price of food and fuels. Here are some good ways to reduce the amount of food you eat:
- Reduce Calories, Increase Nutrition - Eat foods with high nutritional content (low saturated fat and high in dietary fiber, vitamins and minerals) and take multivitamins to supplement nutritional deficiencies. Vegetables, fruits and whole grains have good nutrition with low calories while foods high in both sugar and fat provide calories but are usually low in vitamins, minerals and fibers. Make it a habit to check the nutritional food labels of the food you buy. Here are two interesting links: Foods with the Highest and Least Nutrition Content and Nutrient Search Tool
- Do Not Waste Food - This is something you've probably heard all throughout your life. Whether it was from your mom, from your teacher or from TV, I am sure most of you never took it seriously, I know I didn't. Well, if you want gasoline, milk and bread prices to go down, Don't Waste Food! Don't overeat, save leftovers for later and do not be afraid to doggy bag from eating out. Buy, Cook, and Order food in moderation. You know how much you can eat, don't let your cravings and hunger dictate your ordering or food shopping.
- Eat Less Meat - Remember: more meat consumption = a lot more grain consumption. If you can, eat less meat, especially beef and pork.
As the intertwining of food and fuel become increasingly twisted with record high prices in both commodities, Corn Oil will have a whole new meaning by the time we reach 2009.
Recommended Reading: Beyond Oil: The Threat to Food and Fuel in the Coming Decades by John Gever
3 comments:
Corn oil for the 21st century:
This was an enjoyable article. It affiliate society's issue which adhere to everyone today. Everyone should seek knowledge to make society better. This article is a great stepping stone for betterment for an improve society. We all have to do our part to make the standard of living tolerable. Today we face inflation growing at a faster pace than our work salaries. Our sources for energy are also deteriorating because we over consume. This leads to greater demands due to constraints which lead to higher prices for everyday goods.
Prices for everyday goods has increased 20-30% over the past few years. An great attribute to that is the price of oil. As it was stated in this article, a barrel of oil cost $100.00 today. 4-5 years ago, a barrel of oil cost $60.00. That is an increase of 40% in just a few years. Now how did this happen, China going into the open market is a big reason for this. We ourselves are to blame for this too. We need to stop being lazy and do more to help our cause. Instead of driving to the super market, take a nice walk. Do not rely on gasoline/fuel for transportation. We need to exert our own physical energy such as biking/jogging or public transportation. Instead of driving many cars, try to carpool. This is easier said than done. I for one enjoy a nice strode to the supermarket instead od driving there. If the distance is feasible, please make the effort.
ExxonMobile certainty want us to be lazy. Money are following out their pockets because we are a lazy country. Their annual revenues is 40 plus billion a year. They can protest that the margin is 10%, which is still 4 billion plus a year. We all should make an effort to shrink this number or all should protest to find an another source of energy. There are other sources of energy out there, we need to make this happen with our voices and actions.
Scott
Yes, indeed we have to find a solution to mitigate rising fuel and food prices. But, eating less is not a solution. People have to eat, not to mention that the population is growing and the demand for food. We have to find a viable energy source(s) that do not compete with our food sources. And that is solar and wind energy. These two energy sources ( and other renewable energy sources) are abundant and environmentally friend and has a zero-carboon emission. Unlike biofuels, which according to new independant studies suggest that it is environmentally friendly as it was first thought. Not to mention that it takes more energy to produce than it saves (similar to 3kg to produce a kg of a pig). Solar and wind energy is the way to go.
Alternative energy is the way to go. Although wind and solar power are great alternative energies, they have not been use applicably in replacement of fossil fuels to run automobiles. I think the next feasible step would be to perhaps expand electic "plug-in" car technology but if everyone "plugged-in" their cars, it would probably be too heavy a load for our delicate power grid as it is (North East Blackout 2003)
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