Click Here

Rising prices for food begin at the farm

Milk

The average family spends three times more on food than gasoline. That's why economists say escalating food costs – the fastest rise in 17 years – could present a greater problem for the economy.

In the past year, the cost of eggs has increased nearly 35 percent; milk 13 percent; cheese 12.5 percent. Beef costs are up 3 percent and poultry prices are up 5 percent.

Economists say demand in the global market is outpacing supply. And that is having an impact on local farmers and shoppers.

Bob Nutter, a fifth-generation dairy farmer who operate Maple View Farm in Orange County, blames all the costs that go into making milk for the escalating costs. That includes corn, the essential ingredient used to feed cattle. The price is up more than 200 percent in two years, in large part, because corn is now being used to make ethanol for gas.

"To me, I think it's one of the biggest mistakes the United States has ever done – when you start taking food and start putting it into fuel," he said.

Higher gasoline prices also make it more costly to operate farming equipment and to deliver milk.

Nutter also says the price of fertilizer has more than doubled in the past few years.

"For the grass, for the corn, for everything we grow – malt, barley and wheat – it all has to have fertilizer," he said.



6 Comments


Golo

Welcome to GOLO, where WRAL.com visitors can comment on stories and create profile pages, blogs and photo galleries.

You must be a registered WRAL.com user to use these tools. Click here to register or log in.

View Comments View Comments

Photo Spotlight
0
1
2
3
4
5
[+] more photos | submit your photos
Report It
Send us your news photos, videos, tips and story ideas.
Submit Videos Submit Photos Submit Reports
  1. 2009christmasparade
    Bands, marchers in holiday parade

    Choose your group to watch their performance in the 2009 WRAL-TV Raleigh Christmas Parade.

  2. 2009christmasparade26
    Web only: Complete 2009 WRAL-TV Raleigh Christmas Parade

    Watch the parade in its entirety from the comfort of your computer any time.

  3. taxes
    Search for missing IRS refunds

    The Internal Revenue Service released the names this week of more than 100,000 taxpayers who have not received their 2009 income tax refund.

  4. County Unemployment Rates
    North Carolina unemployment rates

    View an interactive map with county unemployment numbers.

  5. Drought Map
    A year of N.C. Drought Maps

    View a time lapse animation of drought conditions during the last year.

Click Here