Comment 59851

By Mr. Meister (anonymous) | Posted February 16, 2011 at 11:42:30

what does trucking a tomatoe from California to the local grocery store add to the cost? I wager that it is less than 10%. So if the oil prices actually explode and fuel jumps to triple the current price what does that do for the price? If transportation is actually 10% then the $2 a lb tomatoe would jump all the way to $2.60 assuming that the transport cost is actually 10% (probably lower) and that it is made up entirely of fuel costs and ignoring the labour costs. How high do crude costs need to go before the fuel actually triples? Much higher than anything we have seen or are likely to see in a long long time. I believe this is a much ado about nothing. We may face challenges to our food in the future but the cost of diesel to ship it from California to here is not one of them.

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