Farm to Table...

In case you’re wondering exactly why and how food prices are going up (and, having just come back from the grocery store, I certainly am), The Agricultural Advocate posted an extensive blog about the what and why behind food prices using graphs, charts, and analysis of USDA data. The bottom line: biofuels and energy do matter. Not only are farmers growing more corn for biofuel, but they’re also planting fewer acres of other crops to make room for corn. Energy pops up throughout the Agricultural Advocate’s analysis, but it’s not the only factor.

So, next time you’re at the grocery store, here’s what you should know heading to the register:

The Bread Aisle

Wheat has doubled in price in the last few years, and the cost of bread has risen from $1.02 in 2001 to $1.32 in February 2008. But that 30-cent increase in price isn’t only about wheat prices (according to the Agricultural Advocate’s calculation, only six-cents can be attributed to wheat prices). The other 26-cents comes from the increase in the price of fuel when it comes to processing, packaging, and shipping the wheat to retailers. The message: buy local bread when you can to cut d own on some of those fuel costs.

The Meat Counter

In 2007, The Washington Post blamed the meat price ($10 per 100 pounds in a year) increase on corn (read the full article at The Ag Advocate post). But, farmers aren’t making bank on their meat products, according to the USDA monthly retail meat price tracking, nor are increased corn prices having a substantial impact on the cost of meat—most of the cost increase comes after the meat leaves the farm. Again, the increasing price of energy to move product from farm to processing plant, to store, and a vote for eating local meat.

The Dairy Case

The increase in milk prices prompts another economic lesson—supply and demand. As more people in developing countries rise into the middle class, they demand more milk. According to the International Herald Tribune, the average Chinese citizen drank two gallons of milk in 2000, now they drink more than six gallons each year. Add to that a decrease in supply because of a drought in Australia and other factors, and it’s a double whammy for milk prices.

So, it may not be biofuels that’s causing all of those high prices at your local Kroger, but one thing we can agree with is that increased food prices are here to stay. (Photo from the Europe food blog http://blogs.ec.europa.eu/fischer-boel/.)