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I just returned from Sam's club with my once a month Titan full of food staples. Everyone is so worked up about gas prices - no one has noticed the FOOD PRICES - you know - that stuff you eat every day. Just paid almost $600 for the same items that were $335 last month! Meat, fish, veggies, eggs, milk, rice - STAPLES OF LIFE AS WE KNOW IT. They used the gas as smoke and mirrors to draw our attention - then they ran up the cost of real life! I can park my Titan and walk if I had to - but we all still need to eat!
 

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They have to have gas to deliver the food. Everything we eat, use, and need comes in on trucks.......

I'm going to have to go up on my prices soon just to survive!
 

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One of the biggest reasons(besides high fuel costs) for the increase in food costs is the increased production of ethanol. The price of a bushel of corn has more than doubled because of this.
Besides being used for beef, pork and poultry production, corn is used as a sugar substitute in many of our basic food stuffs.
I am a rancher and we are reducing our herd by 75% because of the high corn prices. The Government is subsidizing ethanol production(which corn farmers love), but we as food consumers are paying the price for this, and it is going to get a lot worse.
Look at the prices of food now, mostly for the sake of ethanol production. Ethanol is only a small drop in the bucket of overall fuel consumption( and you can't even buy in most of the country)and everyone in the nation is paying for this folly.
 

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spoken like a true Tundra owner! ;-)

Sounds about right... if you have a boost in algae then the cost of salmon goes up... same makes sense here.

So, if they're growing that much more corn for ethanol how come the price is still almost as high as gasoline?

Food at my local walmart has been about the same price for 2 years, ammunition there, however, has gone up about 10% for winchester.
 

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In the USA on avrage it takes 10 calories of fuel to get 1 calorie of food to eat. When gas goes up so does everything. what do you think everything is made of wood? no its made of oil and it will all keep going up. the poor will not be able to make it and the rich will not give a Dam because they will have just enough to still fly, drive, and buy consumer products like food, computers, solar panels, wind mills. Yeah it suck but I can hunt, fish, grow plants to eat if it gets to bad. most people will have no clue what to do.
 

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kellyj00 said:
spoken like a true Tundra owner! ;-)

Sounds about right... if you have a boost in algae then the cost of salmon goes up... same makes sense here.

So, if they're growing that much more corn for ethanol how come the price is still almost as high as gasoline?

Food at my local walmart has been about the same price for 2 years, ammunition there, however, has gone up about 10% for winchester.
I am not so sure that corn production is up that much. I still have cousins in Ohio that make a living by being paid by the Government not to grow corn.
Even if corn production is up, it would not be enough increased production to make up for the amount of corn that is used for ethanol that most of us can't use or buy. If ethanol wasn't subsidized, and was produced based on market principles, it wouldn't be such a problem.
 

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An easy economic indicator is the price of milk vs the price of gas. Each should go up evenly. The price of milk has risen but not as much as gas, so something is not right.
 

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COTitan said:
An easy economic indicator is the price of milk vs the price of gas. Each should go up evenly.
that's interesting, don't think I've ever heard that those two fluctuate together
 

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Besides being used for beef, pork and poultry production, corn is used as a sugar substitute in many of our basic food stuffs. I am a rancher and we are reducing our herd by 75% because of the high corn prices.
It is my understanding that ranchers may also sell their herd underweight, because there is a point where the rising cost of feed for larger cattle yields a negative gain in profit? From what I have been reading is that we can also expect lower grades of beef to come to market, due to the higher cost to produce US Grade A beef, with those costs being the higher corn/feed prices. The market price for cattle has not climbed in porportion to the rise in feed.
 

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Ever see those commercials "If you bought it, a Truck brought it". Our reliance on oil is more than most people realize.
 

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The price of gas is partly based on no excess refining capacity. Having spent most of my life working for Bechtel in refinerys and power, I can remember when the tree huggers stopped every new refinery application they possibly could. We have not built a new refinery in years and now the ones who caused the problem are screaming the loudest. California forces the refineries to make about 10 different blends depending where you are in the state. Every time the refinery switches to another blend they have to shut down and rework things. We have allowed the environuts to get us in this shape and now the hurting has started. Maybe Barb Streisand will chip in a little.
 

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skyhammer said:
One of the biggest reasons(besides high fuel costs) for the increase in food costs is the increased production of ethanol. The price of a bushel of corn has more than doubled because of this.
Besides being used for beef, pork and poultry production, corn is used as a sugar substitute in many of our basic food stuffs.
I am a rancher and we are reducing our herd by 75% because of the high corn prices. The Government is subsidizing ethanol production(which corn farmers love), but we as food consumers are paying the price for this, and it is going to get a lot worse.
Look at the prices of food now, mostly for the sake of ethanol production. Ethanol is only a small drop in the bucket of overall fuel consumption( and you can't even buy in most of the country)and everyone in the nation is paying for this folly.
I dont think the production of ethanol has caused it to double, but does have an influence on it and is EXPECTED to cause a great increase.
I know what you are saying though........
 

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Great post TallTexan, I believe the last time a refinery was build was ~1974. I work for an E&P company, and I sure get tired of hearing about how the oil companies are causing the prices to go up. Ever heard of pork bellies and orange juice, it's a commodity! Supply and demand, economics 101. I tell people if they do not want to pay the high prices, STOP driving so much. If the demand goes down, the price goes down, again economics 101."blueflag:
 

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The news just stated that all the refineries are only running at 88%!
I know it's impossible to run at 100%, but why not more than that???
 

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I saved 300 bucks at Costco today.














I didn't go in.
 

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gadget74 said:
The news just stated that all the refineries are only running at 88%!
I know it's impossible to run at 100%, but why not more than that???
They have to shut down for maintence, damage due to fires or explosions, and shut down to change over to a new blend for some stupid law. We have summer grades, winter grades, special grades for big cities, what a cluster****!:dude:
 

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COTitan said:
An easy economic indicator is the price of milk vs the price of gas. Each should go up evenly. The price of milk has risen but not as much as gas, so something is not right.
Milk, at least on the dairy farmers end is price controlled by the Government.The Feds set the price and the production levels for milk from dairies, the price of fuel on the other is based on the free market.
 

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TallTexan said:
The price of gas is partly based on no excess refining capacity. Having spent most of my life working for Bechtel in refinerys and power, I can remember when the tree huggers stopped every new refinery application they possibly could. We have not built a new refinery in years and now the ones who caused the problem are screaming the loudest. California forces the refineries to make about 10 different blends depending where you are in the state. Every time the refinery switches to another blend they have to shut down and rework things. We have allowed the environuts to get us in this shape and now the hurting has started. Maybe Barb Streisand will chip in a little.
As far as I know there is no restriction against importing refined oil products in fact I recall one of the largest refineries in the world is in Venezula and exports most of it's production to the USA.
 
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