Posts Tagged “gasoline”

Why You’ll Be Paying More for Spuds and “Blues”

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When the price of gasoline, diesel fuel and other energy products go up, it 152_5221affects everything else in our economy.  Fuel prices are killing consumers — and truckers.  It  is devastating to those involved in transportation because it costs more to deliver products, including produce from shipping points to warehouses, and warehouses to your supermarket.

Consumers also get a double whammy on buying fresh fruits and vegetables.  Not only does it cost farmers more in fertilizers, pesticides, etc., but everyone is passing their costs on to cover their increased costs.  Produce prices also are affected more by weather conditions than many products.

Just about everything in your local produce department is costing more.  Just two examples are potatoes and blueberries, but for different reasons.

Why is there a good chance potatoes in your local produce department will be costing more?  Primarily due to poor eating habits.  The demand is up for potatoes from the folks that process them for french fries in the U.S. and for dehydrated potatoes being exported to other countries.  Thus, the processors are buying up potatoes that would normally be destined for the fresh market.  With reduced amounts of fresh potatoes in your favorite supermarket, expect prices to rise and be higher than they normally would be until the new crop of potatoes begin appearing around August.

However, do not despair.  One thing you can count on with potatoes is the irresistable urge of potato farmers to over produce.  Potatoes are known for bringing financial “feasts” or “famine” to the growers.  They’ll make a bundle one year when the crop is in short supply (and retail prices are high), then the next year the farmers and other investors will pump money into acreage increases.   Unless Mother Nature takes care of things through inclement weather, disease etc., there will be too many potatoes on the market, which is good for consumers because of the lower prices.

Now for blueberries.  Highly perishable, unlike potatoes, these berries are much more susceptable to freeze damage and other “acts of God” activities.  Freezes several weeks ago ranging from Florida to Georgia and North Carolina are expected to reduce blueberry production from those areas, which means higher prices for “blues” at retail.

Late season blueberries from Chile are having quality problems as the season ends in early April.  Florida “blues” are now  available, but lighter supplies mean higher supermarket prices.  To help cover the shortage, you’ll be seeing 4.4 ounce containers of bluesberries offered in stores, instead of 6 ounce containers when supplies are more readily available.

 

 

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