Food costs up
Bruce Bullock of SMU's Maguire Energy Institute talks about rising fuel costs and the effect on food prices.
By David Short
San Marcos — Rising gas prices are not the only item stretching consumers pocketbooks these days. Many probably noticed that the cost of their weekly groceries is also on the rise.
According to the Consumer Price Index, the estimated increase is around three four percent. . .
Unlike some products where shipping can wait as suppliers watch the fuel costs, timing is everything when it comes to food.
“Especially for fresh agricultural goods, time to market is essential. It’s not like you can watch the price of diesel and transport your goods accordingly,” Bruce Bullock, director of the Maguie energy Institute at Southern Methodist University, said. “You are held hostage to those costs.”
The Texas Farm Bureau estimates that around 44 percent of the retail food price increase comes from fuel, transportation and energy costs while raw farm products account for only about 29 percent.
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