Department of Economics Drivers of Food Prices Chad Hart 515-294-9911 Iowa Hunger Summit Des Moines, Iowa October 14, 2008.

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Presentation transcript:

Department of Economics Drivers of Food Prices Chad Hart Iowa Hunger Summit Des Moines, Iowa October 14, 2008

Department of Economics The Food Dollar Source: USDA-ERS

Department of Economics Farm Value in Individual Foods Source: USDA-ERS Farm share of retail price 1 Food (Percent) Milk, ½ gal Orange juice conc., 12 fl. oz Corn, 303 can (17 oz.) Applesauce, 25-oz. jar Tomatoes, whole, 303 can Sugar, 1 lb Flour, wheat, 5 lbs Margarine, 1 lb Rice, long grain, 1 lb Peanut butter, 1 lb Potato chips, regular, 1-lb. bag Chicken dinner, fried, frozen, 11 oz Potatoes, french fried, frozen, 1 lb Bread, 1 lb Corn flakes, 18-oz. box Computed from unrounded farm values.

Department of Economics Factors Leading to Higher Commodity Prices Source: USDA-ERS, Trostle, July 2008

Department of Economics Events in 2007 Droughts: Northern Europe, Ukraine, Russia, Northwest Africa, Turkey, Australia, and Argentina Increased export taxes: China, Argentina, Russia, Kazakhstan, Malaysia, and Indonesia Export restrictions: Argentina, Ukraine, India, Vietnam, Serbia, Egypt, Cambodia, Indonesia, and Kazakhstan

Department of Economics Commodity Price Ratios (Sept =1)

Department of Economics Crude Oil Prices

Department of Economics Commodity Price Indexes Source: Internation Financial Statistics

Department of Economics Thanks for your time!