Saturday, August 21, 2010

How are oil prices affecting the food industry?

Much of our food is imported. They need to shipped from overseas.





For both domestic and imported food, they need to be transported to grocery stores and restaurants through the use of trucks, ships, and sometimes planes.





Cost of oil rises, so does oil derivatives such as gasoline, plastic, etc.





Oil is connected to EVERYTHING!!! Control oil, and you will have control over the entire world.How are oil prices affecting the food industry?
People are going to Mcdonalds instead of the steak house. Tipping less, Cooking at home instead of eating outHow are oil prices affecting the food industry?
The food has to be delivered from place to place. The food has to get to the restaurant,or store somehow. It goes by plane, or truck,or boat. People have to pay for that gas in-turn raising the price of the food to make up costs.
Oil prices mostly affect the transportation of goods. Since most of our food supply needs to be transported a relatively long distance, the cost of this factor of production is passed onto consumers. Also the equipment needed to tend to farms is also more costly to operate due to the increased price of oil.
Hmm... by oil you mean petrol and stuff right?





well maybe oil goes up in price, so people have less money to buy petrol. With no petrol, they can't drive 5 miles out into town to get McDonalds, yeah?





Maybe that's a possible scenario.

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