Wednesday, October 13, 2010
People Have To Eat
(click on image to enlarge)
The above graph, plus the current price of corn says we are heading for a cliff.
In America, the food system runs on corn. Even dairy is heavily dependent on corn. Although there are some grass based dairies, the larger operation providing the most milk all go heavy on grain, particularly corn.
So what does $6 corn mean? There seems to be little wiggle room. The retailers have no room to raise prices. At the same time the per capita beef is the lowest since 1952. Pork is about the same.
A the production level dairy, including the support business are bleeding badly.
Needless to say, the bulk of the public is in trouble financially. Can most of the public pay more? Can dairy farm margins be less - NO.
Is there any leadership - NO.