I recently had a conversation with an organic farmer. While he is able to pass on at least some of his increased costs for energy and fuel through direct sales and cooperatively organized distribution channels, his conventionally farmed colleagues have a bigger problem. They have long-term purchase contracts that fix the prices for milk, meat or vegetables. In the case of milk and meat in particular, production costs, including purchased feed for the animals, now exceed the agreed purchase prices.
At the same time, however, prices for the end consumer are rising because, on the one hand, the processing companies themselves have higher energy costs, but on the other hand (without passing them on to the producers) the current climate allows price increases and thus an increase in margins. So the consumer and the farmer lose out. Only the processor, its shareholders and retailers benefit (at least in the short term). And the speculators who bet on rising prices.
Many conventional farmers see their livelihoods threatened. Which further endangers food security in the long term.
At the same time, however, prices for the end consumer are rising because, on the one hand, the processing companies themselves have higher energy costs, but on the other hand (without passing them on to the producers) the current climate allows price increases and thus an increase in margins. So the consumer and the farmer lose out. Only the processor, its shareholders and retailers benefit (at least in the short term). And the speculators who bet on rising prices.
Many conventional farmers see their livelihoods threatened. Which further endangers food security in the long term.