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It's energy plus food. Fertiliser is made from gas (generally) so there's a double hit. First feed prices go up, then fertiliser prices go up, then beef prices
by disgruntledphd2 1y ago
It's energy plus food. Fertiliser is made from gas (generally) so there's a double hit. First feed prices go up, then fertiliser prices go up, then beef prices go up.
We really (as a species) need to get off oil based stuff if we want to reduce inflation over the longer term (and for all the other climate based reasons too).
- zer00eyz 1y ago> First feed prices go up, No, thats not what the data says: Corn: https://fred.stlouisfed.org/series/WPS012202 https://fred.stlouisfed.org/series/WPS012202 Soy: https://fred.stlouisfed.org/series/PSOYBUSDM https://fred.stlouisfed.org/series/PSOYBUSDM Both the major inputs to cattle feed are flat, and thats in the face of: Fertilizer is up: https://fred.stlouisfed.org/series/WPU0652026A https://fred.stlouisfed.org/series/WPU0652026A Gas (delivered, by pipe, and were burning this off still so no reason for the price to go up this high) https://fred.stlouisfed.org/series/APU000072620 https://fred.stlouisfed.org/series/APU000072620
- disgruntledphd2 1y agoYou're talking about the US experience, things were very different in Europe (where I'm from). The energy shock was much bigger over here. \ And even your corn link shows a 3.5x increase from 2020 to 2022, which, by definition will increase cattle prices, all other things being equal.