The Real Inflation Fear - US Food Prices Are Up 19% In 2014

Tyler Durden's picture

We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 - up a staggering 19%...

 

 

h/t Bloomberg's Chase van der Rhoer

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Ceylon tea's picture

People are developing hygenic strains of bees now that are able to pick the varroa mites off.

The main cause of bee die off is reduced immune system responce combined with varroa mite infestation

 

Queen Nuc'ing is going to be very profitable this season

Overfed's picture

Dusting them with powdered sugar will induce them to pick the mites off other adults, the real problem is varroa on the larvae. Do you do a lot with bees? I'm starting over after losing my hive.

Calmyourself's picture

I am unhappily surprised flak evryone knows bees are being decimated by GW even James Hansens NASA says so your losing your touch, I am starting to doubt...

http://www.digitaljournal.com/article/297215

 

Here is a nice big list of things represented in "science journals" as being casued by GW, you know so you never run short of "peer reviewed" talking points, first on the list two contenders..

Amazon dry season greener
Amazon dry season browner

Yes, it causes both... 

 

 

LawsofPhysics's picture

Many of the pesticides are now known to inhibit essential functions.  The pesticides are probably the biggest contributor, but other chemical contributors may be related to all kinds of other human activities.

The "mites" are not a problem. My bee keeper sprinkles powdered sugar on his bees from time-to time and as they clean themselves off, they pick off the mites, which fall out of the bottom of his screened hives.

Most other bee keepers I know use oxalic acid and simply except a certain colony loss.

 

 

dontgoforit's picture

Colony collapse is rampant here in GA.  UGA has entire labs working on it.  As go the bees, so goes humanity.

Seer's picture

Well, not all is lost, as there are quite a few pollinators out there.  It's just the that the honeybee is extensively used in commerical operations.

Tall Tom's picture

That chart of Food Prices is an Exponential Growth Chart.

 

In any adiabatic system Exponential Growth leads to an Exponential Collapse.

 

If the chart is due to speculation then the Price will collapse as the investor/speculator realizes that it cannot continue. (The article states that this is not the case.)

 

If the chart is due to an actual shortage of supplies then the price will collapse due to mass starvation which will lower the demand for food.

 

Either way you can expect that the price of food will collapse at some point as Exponential Growth is unsustainable.

 

The simple version...WE ARE SO FUCKED.

LawsofPhysics's picture

Yes, either way, unless the population (which has and is growing exponentially) drops significantly, either scenario leads to starvation.  People need to eat, so as long as the population continues as it has, there will be plenty of real demand.

 

Seer's picture

Economies of scale in reverse.  Prices are relative, it's margins that matter and economies of scale in reverse will really screw with margins.  Margin loss will eventually wipe out many companies, then entire industries...

Ghordius's picture

Laws, you are not being complete in your assessment of how much energy is required to provide food for 7+ billion people. I wrote this before for knuckles, focussing only on meat

----------

 

correct. knukles is again at that old thing about consumption, the finite planet and so on. a fine point wielded like a club

consumption is relative. and overconsumption is... cultural. have a look here at those meat consumption statistics

the average American consumes  31 kg of pork,    49 kg of chicken and   45 kg of beef in one year   (total: 125 kg)

the average   Briton    consumes  25 kg of pork,    28 kg of chicken and      19 kg of beef in one year     (total:  72 kg)

the average  German   consumes 58 kg of pork,  15 kg of chicken and      15 kg of beef in one year     (total:  88 kg)

and this goes down, down, down to countries where people live a healthy life, have good food, and yet their total meat consumption per year is... around 10 kg

and then even further down

now if you know how much food/energy is necessary to produce meat instead of other edible things, and how different the types of meat are in this calculation... you start to realize that it's a problem due to a mix of a quantity, quality and culture

--------------

in short, if we would all become vegetarians... then this planet would have space for way more people (you farm nuts, don't you? long nuts)

yet this would also apply if we would eat a... sensible amount of meat (not as the 3 examples above)

of course, the energy discussion... is even more complex

why does US agrobiz want us europeans to eat unlabeled GMO food, btw? which has to be shipped over? it's not as if we would not have lots and lots of food production here

 

vortmax's picture

I've noticed the US media hasn't been saying much about Porcine Epidemic Diarrhea virus, now confirmed in 27 states with as many as 5 million hogs dead in the past year. 

KickIce's picture

Good find, I've seen it mentioned on an ag forum I visit.

Overfed's picture

Malthus would be proud.

LawsofPhysics's picture

Your analysis ignores the energy required by natural cycles (that we manipulate) to simply get elements in the correct oxidation state in order to be utilized by plants... 

Seer's picture

"in short, if we would all become vegetarians... then this planet would have space for way more people (you farm nuts, don't you? long nuts)"

Do you not understand why humans are omnivores?  Try selling this notion to folks in the polar regions.

There are plenty of places where growing crops just doesn't work very well and that growing animals does.

Lots of places that grow grains for animals wouldn't necessarily be that great for growing other stuff.  Not that I'm a big fan of grain-fed, but this is just the facts.

At one point there wasn't any concern with producing meat.  Now there is.  To say that the same woudn't happen to producing vegetables/crops is at odds with logic.

tip e. canoe's picture

and to riff off of seer's point, if there were a large scale adoption of Savory/Salatin-style pasture rotation, the same amount of beef could be raised on a fraction of the land and inputs and have healthier happier animals, leading to healthier happier people.

perhaps it's not what we eat ghordy, it's how it's raised/grown/treated/cultivated...

Ghordius's picture

I am omnivore too, even with a meat consumption five times smaller than the average American and four times smaller than the average Briton or German

I'm not trying to bring Malthus in the mix or saying we have to become all vegetarians, just trying to state facts. and it's a fact that the average Westerner eats way too much meat for his health. as you said, we are omnivores. not carnivores

and eating this kind of amounts of meat does require multiples of resources. it's a question of balance

Creeps's picture

@LoP

I have family that is in the bee business.  They have reduced their hive count down 20% to 8k and are not planning on replacing the hives, but are planning on doing more with wax filtering.  So I wonder who / what is going to pick up the shortfall of those collapsed hives?  Sad times are coming.  On the brighter side I'm getting my first nuc this summer.

mt paul's picture

cool

bytches be eating too much anyhow..

StillSilence's picture

Yes a person wouldn't even need water stored for SHTF survival purposes if they adopted urine usage. I have a feeling most could go at least a few months consuming nothing but. Might even get much healthier....Make a 20oz (weight, not fluid capacity, although it could be both) cup of gold to piss in and you are perfectly portable if the situation would actually ever present itself.....Maybe that's your holy grail right there; urine out of your golden chalice. Body and finances both protected and free to roam.

lunaticfringe's picture

Sign on septic tank truck: Yesterday's Meals on Wheels.

Dollarmedes's picture

Voters are gonna love this shit come November, and whether Democrats are responsible or not won't matter; they will be blamed.

Quus Ant's picture

Voting?  Democrats?  Republicans? 

Children do love their games, don't they.

RevRex's picture

The Socialist Semite Democrat media does a great job convincing idiots that both parties are the same.

Quus Ant's picture

They do a great job convincing you your vote matters. Congratulations, citizen, you get to choose which brand of psycho will administrate the war.

Here's a sticker to show what a good citizen you are.  Now get back to work. 

ParkAveFlasher's picture

They are indeed different.  One is red, the other is blue.

Quus Ant's picture

Give a people their choice of death and they will happily ride to hell rejoicing.

cro_maat's picture

This is why you can switch sides in all of the death = more points video games. Once you have killed a few hundred thousand of your favorite video enemy you are ready to command a drone center in Pakistan.

Nature needs more human compost apparently.

Gert_B_Frobe's picture

Silly poster. Come September a gallon of gas will be hovering around the $3 mark and the prices on consumables will be drastically slashed ... allowing for the "hey, it's not sooo bad" to sink in b4 November.

And as far as the "Givs me dat" voting block, well, as long as they have them stamps and phones and other reparations ...

Wahooo's picture

Huh?  Everyone knows it's the fault of the greedy supermarket chains. They're raping us!

Dr. Richard Head's picture

I remember in 2008 talking to my neighbor about food inflation coming.  He said, "Talk to me when milk hits $5."  Looks like we will be having that conversation again.

quasimodo's picture

It's really bad if you give your kids organic. Almost five bucks for a HALF gallon.

Needless to say they don't drink as much as most kids do, and if it stays in the glass after supper it goes right back in the fridge for later.

RevRex's picture

Organic foods are for the mentally challenged

LawsofPhysics's picture

Hold on, could someone please define "organic".  I know or many extremely toxic/cacenogenic chemicals that are produced by non-GMO plants, all complete "organic", all completely guarranteed to fuck you up.

RSloane's picture

Preach it, Laws! The only thing you know for sure is organic is the food you grew and harvested. Around here in the Great Republic of Maryland 'organic' means someone put a lable saying "Organic" on their food and charging a hella lot more. No one bothers to check if its really organic or not.

HoofHearted's picture

We do raw milk rather than any organic pasteurized stuff. And it's amazing to drink real milk after you have had that plastic tasting crap for so long. Then you go someplace and get the plastic milk again and say, "Nevermore." 

$7.50 per gallon (with a cowshare to get around Monsanto BS) here in flyover country and worth it completely. 

LawsofPhysics's picture

"The only thing you know for sure is organic is the food you grew and harvested." - sure, so long as you have a complete and acurrate chemical analysis of all the compounds that are in the soil, air, and water...

 

I seem to remember seeing a study showing that even native people in remote areas have a substantial amount of plasticizers in their blood...

 

Quus Ant's picture

So your great grandparents were retarded? 

Abitdodgie's picture

I have changed my take on GMO ,I like them you see they get rid of stupid people because they are the only ones stupid enough to eat them.

aphlaque_duck's picture

I'm paying $11/gal for raw milk at the farm.

Miffed Microbiologist's picture

Try raw Jersey milk. Generally $8/qt. my mother in law nearly pissed herself when she saw this at our local natural food store. She used to siphon milk out of bulk tank on her Jersey farm for $3/gal in the late 70s. Food Inflation? Nah.

Miffed;-)

Miffed Microbiologist's picture

YIKES! So funny how idiots can't resist the temptation to take pictures of themselves doing this sort of thing. I guess you just can't fix stoopid. Tx for the laugh.

Miffed;-)

Creeps's picture

Is raw milk that much better in taste and quality?  I remember as a kid going to my great aunt's farm and hating the stuff, mostly because it was warm. <shudder>  I know a few in the CrossFit community swear by the stuff, but what say you?

Miffed Microbiologist's picture

Much better but you must get a good quality source. When my husband first tasted commercial pasteurized milk he spat it out. Said it tasted horribly rotten with a chemical after taste. I really didn't know what he meant until now. We don't have much dairy in our diets but occasionally buy a qt of raw jersey milk and some raw cheese. I can see how a good grass fed raw milk would appeal to the Crossfit community.

Miffed;-)

andycrazn's picture

then you have to wait til milk hits $10 dollars for him to give a crap

laomei's picture

Hate to break it to ya, but what aldi sells should hardly be considered "food".

LFMayor's picture

Very true!  Know a guy and his brother who bought some Aldi's  "hamburger" this past year to use at their deer camp (trailer).  Tried to fry it up, the shit just kept cooking down, cooking down, smaller and smaller.  They did not heed the warnings and ate it anyways.  Next morning, younger brother was doubled up, laying on the ground when he tried to run back to camp to take a dump, the pain was so bad.

They must have used some fucking amatia mushrooms as filler in that shit...