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Higher Pizza Prices? Blame Oil
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Saturday, June 23, 2007
9:56:00 AM EDT
Hearing Nothing at the moment
Here's an interesting thing: It turns out that pizza prices are up these days because the cost of cheese has gone through the roof: The price of cheddar cheese, which is the standard tracking cheese in the sector, has gone up something like 70% in the last year. And why have cheese prices gone up? In part, you can blame gas prices:
Prices for milk, a key ingredient in cheese, have gone up — a result of higher feed grain costs for dairy cattle herds, said Rob Hainer, spokesman for the Atlanta-based Southeast United Dairy Industry Association. In particular, corn prices have risen amid growing demand for ethanol fuel, he said.
More farmers are growing corn to turn into ethanol, which means less grain for feed, which drives up the cost of feed, which drives up the cost of milk, which drives up the cost of cheese, which drives up the cost of your pizza. It's a domino effect that leads right back to your car. It's an interesting set of connections, and not necessarily one you would expect. Something to think about the next time you order a pie with extra cheese.
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9:56:00 AM EDT
Hearing Nothing at the moment
Higher Pizza Prices? Blame Oil
Here's an interesting thing: It turns out that pizza prices are up these days because the cost of cheese has gone through the roof: The price of cheddar cheese, which is the standard tracking cheese in the sector, has gone up something like 70% in the last year. And why have cheese prices gone up? In part, you can blame gas prices:
Prices for milk, a key ingredient in cheese, have gone up — a result of higher feed grain costs for dairy cattle herds, said Rob Hainer, spokesman for the Atlanta-based Southeast United Dairy Industry Association. In particular, corn prices have risen amid growing demand for ethanol fuel, he said.
More farmers are growing corn to turn into ethanol, which means less grain for feed, which drives up the cost of feed, which drives up the cost of milk, which drives up the cost of cheese, which drives up the cost of your pizza. It's a domino effect that leads right back to your car. It's an interesting set of connections, and not necessarily one you would expect. Something to think about the next time you order a pie with extra cheese.
Written by johnmscalzi Blog about this entry |
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This entry has 3 comments: (Add your own)
-
Ooo... "Domino effect." Good one.
Anyway, yep. Here in Wisconsin it's getting weird. The price of everything related to cows has gone up, and I'm thinking it's only a matter of time before I am, once again, reduced to dumping Miller High Life on my morning oatmeal.
-Dan
http://journals.aol.com/dpoem/TheWisdomofaDistractedMind/ -
This is a great article. It really helps put the "Domino effect" into perspective! Thanks for sharing it.
I hope you don't mind, I borrowed a few of your lines to post on my own blog: boliyou.blogspot.com.
-boliyou
6/25/07 4:00 PM