August 8, 2008

Transportation cost: 20 cents of each food dollar

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Energy costs for producing food are up 150 percent in the last four years and transportation now accounts for 20 cents of each food dollar -- at least according to a news release put out recently by the Center for Food Integrity.

The source for the information is Kevin Lindemer of Global Insight's energy group. He said the food industry should be prepared "to see a continuation of high energy prices," and although prices may come down, they "will continue at a much higher level than what we grew up with."

The 20-cents per food dollar transportation figure is considerably higher than what USDA has generally published, which you can see here. Although maybe the 20-cent figure includes some other energy costs -- and those have certainly skyrocketed.

It's also a penny more than the farmer share of the food dollar - which stands at 19 cents. In 1950, the farmer share of the food dollar was 40 cents, so U.S. farmers have gotten considerably more efficient over the last 58 years!

If you're looking for more good information on the farmer's share of food costs, check out the Thank a Chicken website for the real cost of food and more. You can also check out the latest CornsTalk from the Nebraska Corn Board.

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