18 April 2008 1146 views 2 Comments Print This Post  Email This Post

Food prices are on the rise — more so than they have been in years. A dozen eggs costs 60 percent more today than it did just a year ago. And after so many years of only single digit food inflation, consumers are starting to worry.

There are a number of causes for rising costs. For one thing, the cost of transporting food has essentially skyrocketed, following the rise of gas prices. Gas prices are still going up, too. Americans have a long way to go before our gas prices are actually comparable with most countries (we’re currently sitting at less than half of what drivers in the U.K. pay), and it’s more than reasonable to expect gas prices to keep rising. Food prices will climb with them.

But there’s another reason inflating food prices: the use of corn. Of the corn crop grown in 2008-09, 31 percent will be used to produce ethanol, rather than food. This rising rate doesn’t just force the cost of corn for our table upwards — it also inflates the cost of beef, milk, chicken, eggs… anything that comes from an animal fed on corn, which is most of them these days. It also, by the way, drives up the cost of several types of plastic, which are also corn products.

That environment-saving ethanol everyone’s so fond of? Yep, it’s a leading cause in the cost of getting dinner on the table. And since the trend is reflected in the cost of food staples from every part of the grocery stor, there’s not much we can do about it. Cooking from scratch can only take a certain amount off of our food bill — we all are facing an ongoing trend that will impact us no matter what store we shop at or which coupons we clip.

Raising my own chickens is starting to look pretty good. It’s just about the only way I’ve been able to think of to avoid the rising cost of eggs. I’m not sure if I can talk my landlord in to it, though. I’m doing my best to plan ahead, but my wallet’s going to take the same beating as yours. I’ve cut down on eating out and buying prepared food. I even bake my own bread — at $4 a loaf, it’s a clear savings even if I do have to spend a little time in the kitchen.

How are you protecting your budget against the rise in food costs?