hmm... i beg to differ... mainly because corn prices are highly subsidised...
and if it comes to a 200% price hike... corn which is now 80 cents a can will go up to $1.60...
with animals lets do some hypotheticals... lets use the 200% number again... and lets say a farmer has... 20 chickens for and two cows... im not a farmer but lets just use it for an example and they eat equivelant
which means the price for feed would go up 10 % each for the chicken and about 100% for cows...
and well since it takes about 7 pounds of feed to make one pound of meat lets use a multipul of seven
so chicken would go up 70% and beef would go up 700%
i look at my grocery now and chicken is $2.50 a pound and beef is $3.50 a pound
so the price hike would bring current chicken prices up to $4.25 and beef would go up to $24.5 a pound
chicken is fine... beef is crazy...
There are some problems with this though:
none of this is taking in the bell curve of supply and demand... which is that at a certain point prices become to high and no one buys it... so the price falls...i dont think anyone would buy meat at $24.50 a pound
also food is quite cheap... americans pay between 8-20% of their money on food and supermarkets are raking in profits quite well according to bloomberg... therefor there is space to go... yes some prices will be passed on... but not all... because the wonders of capitalism which breeds compeitition
could this be killer NO! ... it could solve the obesity epidemic... heaven forbid we eat more vegetables and less corn syrup and meat...
with gas if ethenol was totally knocked out that would cause gas prices to rise 10% a 35 cent up tick... but once again the bell curve... as well as further investments in natural gas, hybrids, and walking...
shopping north west PA and south west ny
Edited 1 time(s). Last edit at 07/29/2012 08:31PM by cooldude581.