http://oilprice.com/Energy/Oil-Price...e-of-Food.html
"The connection between food and oil is systemic, and the prices of both food and fuel have risen and fallen more or less in tandem in recent years (figure 1). Modern agriculture uses oil products to fuel farm machinery, to transport other inputs to the farm, and to transport farm output to the ultimate consumer. Oil is often also used as input in agricultural chemicals. Oil price increases therefore put pressure on all these aspects of commercial food systems."
So the price of food should be going DOWN but it is not.
WHY??
Each company internally saying "Don't lower our prices unless the competition does."?
On the mega-farms here, a good chunk of the production is sold in advance to Frito-Lay, Pepsico, Conglomerate-Du-Jour, etc. on contract. I think it's a year in advance, but maybe more. Anyway, the price-to-market effect is buffered some by this.
There will be some upward pressures on food prices because of the dry conditions in the western states, California in particular.
>Why?
One word: drought.
They are in the UK:
http://www.tradingeconomics.com/united-kingdom/food-inflation
Just adding to the discussion
http://naturalsociety.com/how-far-food-travel-food-miles-1500-average/