Title: Why Are Food Prices So High?
Headings: Why Are Food Prices So High?
Why Are Food Prices So High?
Content: 7) Increased oil prices drive up costs for transportation, fertilizer, plastic packaging and inks used to print packaging. 8) In some areas of the U.S., the government is paying farmers not to plant to save water. This reduces food supply. 9) Drier and hotter weather trends in farming areas generally reduce crop yield and drive prices higher. 10) Import tariffs and export taxes distort supply and demand, and hence food prices around the world. The interaction of different commodity prices also is interesting. For instance, the demand for corn and soybeans in China has pushed up the prices of eggs here in the U.S. The grain costs account for about half of the 23% rise in egg prices last year. The balance of the cost increase is due to fewer laying hens. The rising costs of grain for feedstock have increased prices on beef and pork. Advanced Economic Solutions, an economic research firm has predicted that beef prices will rise 12% in 2012.