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How Oil Prices Affect the Price of Food

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#1 Riddikulus


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Posted 17 September 2015 - 03:27 PM

While wealthy consumers are able to absorb incremental increases in food prices, a sudden interruption in the availability of fuel (due to geopolitical events) or a significant gradual curtailment of fossil fuel production (due to the continuing depletion of world hydrocarbon reserves) could lead to a breakdown of the food system at every level, from farmer to processor to distributor to retailer and finally to consumer.
To summarize, high oil prices contribute to soaring food prices. Our modern global food system is highly oil-dependent, but petroleum is becoming less and less affordable. Extreme weather events also contribute to high food prices, and, to the extent that such events result from anthropogenic global warming, they are also ultimately fuel-related. Thus there is no solution for the world’s worsening food crisis within current energy and agricultural systems.


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Posted 17 September 2015 - 03:36 PM

Price Relationships of Crude Oil and Food Commodities
This is a PDF file...
I don't think there is anything new in this. Transportation has always had an effect on the price of any commodities. Before oil it was steam.  Before steam it was sail and horse power.  Oil fuels the effectiveness of value:  How fast can one get a product to the customer? 

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#3 status - Ancient Mariner

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Posted 23 September 2018 - 01:12 PM

Logistics are important. Without the truck drivers no one gets nothing.


Other means of power should be introduced into the system.


In the long run, relying on oil has been a mistake.

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