Food Prices Surge Due to Impact from Oil Price

Higher oil prices are affecting agriculture well beyond fuel costs. Ben Klieve, Senior Research Analyst at Benchmark, explains that fresh fruit and vegetable markets are often the first agricultural sectors to feel rising energy costs because transportation plays a much larger role in final pricing. Higher oil prices raise energy intensive refrigerated transport costs, which will play a large role in driving food price inflation. Similarly, high oil prices have resulted in soybeans being increasingly used for biofuels, taking many out of the food supply. View his full report in the related video.