Agflation

[EmptyTimCup]

Agflation

What does it Mean? An increase in the price of food that occurs as a result of increased demand from human consumption and use as an alternative energy resource. While the competitive nature of retail supermarkets allows some of the effects of agflation to be absorbed, the price increases that agflation causes are largely passed on to the end consumer. The term is derived from a combination of the words "agriculture" and "inflation".

Investopedia Says... Interest in alternative energies contributes to agflation. In order to produce biofuel (such as biodiesel and ethanol), manufacturers need to use food products such soybeans and corn. This creates more demand for these products, which causes their prices to increase.

Unfortunately, these price increases spread to other non-fuel related grains (such as rice and wheat) as consumers switch to less expensive substitutes for consumption. Furthermore, agflation will also affect non-vegetative foods (eggs, meat and dairy) as the price increases for grain will make livestock feed more expensive as well.

Thanks to Congress for mandated Ethanol ....

 

[Cowgirl]

So, would you rather us be completely dependant on oil rather than exploring alternatives?

 

[EmptyTimCup]

So, would you rather us be completely dependant on oil rather than exploring alternatives?

do you like people starving in 3rd world countries, because food cost has gone up 75% because of ethanol production

 

[philibusters]

Agflation




Thanks to Congress for mandated Ethanol ....

If Ethanol was more efficient it would be worth it, but it was bad legislation cause it is clearly not the long term solution to our energy issue. The amount of energy needed to convert corn into ethanol take up like over half the energy that the ethanol produces, so really inefficient.

But if ethanol was efficient, then of course it would be worth it.

 

[Cowgirl]

do you like people starving in 3rd world countries, because food cost has gone up 75% because of ethanol production

Do you like posting in threads that are 2.5 yrs old?