Oil is Down, Food Prices Have Not Dropped, Who's Hoarding the Margins?

As oil price rose, food costs more than doubled at grocery stores.

Oil prices have dropped from a high of $145 in June to $71 - over 50% drop. In September, the global food index dropped to 188 from a high of 219, a 17% drop. No relieve has appeared at grocery stores or restaurants.

The FAO Food Price Index (FFPI) dropped another 6 percent in September, falling to a nine-month low of 188 points. The sharp decline in the index reflected the rapid decrease in international prices of all major food and feed commodities (composing the FFPI). The FFPI rose steadily since early 2006, climbing to a record 219 points in June 2008. In spite of its continuing decline since that month, the FFPI was still up 11 points from its value last September and as much as 51 percent above the level in September 2006.

Who's hoarding the margins? Producer, importer, wholesaler, shipper, or retailer?

In these bad economic times, the consumer needs immediate price relieve. Hopefully, the competitive forces of capitalism brings that relieve to grocery stores, soon.

Long Term Problem

Did the US population learn the negative lessons of energy dependence?

We still consume more oil than the next 20 countries - including 1.4 billion people in China. Short term relieve does not solve the long term problem.

For our economic well-being, we must conserve and become energy independent.

Don't let the elections, financial meltdown, and economic contractions distract us from the daily need to conserve energy.