And how to prove it, look at the specialty food Lobster and the reason for 'food inflation' is
Food inflation derives from several sources. The price of food can be driven upward by consumer and commercial demand, by speculation in the futures markets, and by producers successfully passing on the higher costs they incur (for gas, fertilizer, labor, processing, packaging, distribution) to buyers. The longer and more complex the supply chain (i.e., olives that are picked in Tunisia, shipped to Italy to be turned into tapenade, and then shipped to Dean & DeLuca to be turned into hors d'oeuvres for yuppies), the greater the opportunities for marking up prices and passing along costs.My own emphasis, but it's true statement about distance and cost. The downside is that if everyone began to buy local with such high demands you'd see increased scarcity as small farmers wouldn't be able to keep up.
No comments:
Post a Comment