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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Wed, 03/26/2014 - 18:44 | 4596103 Ceylon tea
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

Wed, 03/26/2014 - 20:12 | 4596490 Overfed
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.

Wed, 03/26/2014 - 19:22 | 4596300 Calmyourself
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...


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... 



Wed, 03/26/2014 - 13:06 | 4594261 LawsofPhysics
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.



Wed, 03/26/2014 - 13:36 | 4594458 dontgoforit
dontgoforit's picture

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

Wed, 03/26/2014 - 20:53 | 4596650 Seer
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.

Wed, 03/26/2014 - 13:01 | 4594296 Tall Tom
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.

Wed, 03/26/2014 - 13:10 | 4594355 LawsofPhysics
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.


Wed, 03/26/2014 - 20:55 | 4596663 Seer
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...

Wed, 03/26/2014 - 13:23 | 4594396 Ghordius
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


Wed, 03/26/2014 - 14:07 | 4594608 vortmax
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. 

Wed, 03/26/2014 - 14:44 | 4594834 KickIce
KickIce's picture

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

Wed, 03/26/2014 - 18:46 | 4596117 Ceylon tea
Ceylon tea's picture

Long pork

Wed, 03/26/2014 - 15:29 | 4595092 Overfed
Overfed's picture

Malthus would be proud.

Wed, 03/26/2014 - 16:38 | 4595531 LawsofPhysics
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... 

Wed, 03/26/2014 - 21:01 | 4596688 Seer
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.

Wed, 03/26/2014 - 21:30 | 4596813 tip e. canoe
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...

Thu, 03/27/2014 - 03:37 | 4597604 Ghordius
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

Wed, 03/26/2014 - 15:13 | 4594605 Creeps
Creeps's picture


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.

Wed, 03/26/2014 - 13:34 | 4594451 mt paul
mt paul's picture


bytches be eating too much anyhow..

Wed, 03/26/2014 - 18:27 | 4596019 StillSilence
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.

Wed, 03/26/2014 - 19:03 | 4596203 lunaticfringe
lunaticfringe's picture

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

Wed, 03/26/2014 - 10:41 | 4593642 Dollarmedes
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.

Wed, 03/26/2014 - 11:12 | 4593804 Quus Ant
Quus Ant's picture

Voting?  Democrats?  Republicans? 

Children do love their games, don't they.

Wed, 03/26/2014 - 11:21 | 4593856 RevRex
RevRex's picture

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

Wed, 03/26/2014 - 11:25 | 4593887 Quus Ant
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. 

Wed, 03/26/2014 - 11:25 | 4593889 ParkAveFlasher
ParkAveFlasher's picture

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

Wed, 03/26/2014 - 11:36 | 4593928 Quus Ant
Quus Ant's picture

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

Wed, 03/26/2014 - 11:52 | 4594019 cro_maat
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.

Wed, 03/26/2014 - 11:21 | 4593854 Gert_B_Frobe
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 ...

Wed, 03/26/2014 - 11:58 | 4594049 Wahooo
Wahooo's picture

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

Wed, 03/26/2014 - 10:52 | 4593693 Dr. Richard Head
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.

Wed, 03/26/2014 - 11:20 | 4593850 quasimodo
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.

Wed, 03/26/2014 - 11:22 | 4593865 RevRex
RevRex's picture

Organic foods are for the mentally challenged

Wed, 03/26/2014 - 11:52 | 4594017 LawsofPhysics
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.

Wed, 03/26/2014 - 12:32 | 4594177 RSloane
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.

Wed, 03/26/2014 - 13:10 | 4594356 HoofHearted
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. 

Wed, 03/26/2014 - 13:12 | 4594366 LawsofPhysics
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...


Wed, 03/26/2014 - 11:52 | 4594022 Quus Ant
Quus Ant's picture

So your great grandparents were retarded? 

Wed, 03/26/2014 - 13:56 | 4594562 Abitdodgie
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.

Wed, 03/26/2014 - 12:41 | 4594227 aphlaque_duck
aphlaque_duck's picture

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

Wed, 03/26/2014 - 13:56 | 4594563 Miffed Microbio...
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.


Wed, 03/26/2014 - 16:22 | 4595441 TheMeatTrapper
TheMeatTrapper's picture

Just stay away from Russian cheese:

Wed, 03/26/2014 - 18:12 | 4595941 Miffed Microbio...
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.


Wed, 03/26/2014 - 21:44 | 4596878 Creeps
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?

Thu, 03/27/2014 - 12:30 | 4599000 Miffed Microbio...
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.


Wed, 03/26/2014 - 20:02 | 4596456 andycrazn
andycrazn's picture

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

Wed, 03/26/2014 - 11:32 | 4593914 Mr Pink
Mr Pink's picture

Hormones ain't cheap!

Wed, 03/26/2014 - 11:50 | 4594010 laomei
laomei's picture

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

Wed, 03/26/2014 - 14:36 | 4594786 LFMayor
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... 

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