NAMA Shortcuts
Member Directory
Best of NAMA 2012
Upcoming Events
Chapters
Agri-Marketing Conf
More NAMA












USDA: FRUIT, VEGETABLE PRICES RESPOND DIFFERENTLY TO OIL PRICE INCREASES
Economic Research Service (ERS) reports:

Fresh fruit and vegetable prices are among the most volatile U.S. retail food prices.

One potential source of this volatility is the price of oil, as fresh fruits and vegetables often travel long distances from field to consumer.

ERS researchers found that the impact of oil price increases on wholesale produce prices depends on both the commodity shipped and the route traveled.

A hypothetical doubling of oil prices would be expected to increase wholesale prices of the 6 commodities studied-asparagus, cantaloupes, bell peppers, grapes, oranges, and tomatoes-by 3 to 27 percent depending on the origin of the commodity.

Generally, wholesale prices of produce grown in the United States, Canada, and Mexico are more sensitive to changes in oil prices since produce grown in North America is shipped primarily by truck, which has relatively high fuel costs per pound of produce.

Fresh fruit and vegetables from South and Central America are more likely to be shipped by plane or boat, which are less fuel-intensive modes of transportation.

This chart appears in "Impact of Oil Prices on Produce Prices Depends on Route and Mode of Transportation" in ERS's Amber Waves magazine, released February 3, 2014.



Search News & Articles






















Proudly associated with:
American Business Media Canadian Agri-Marketing Association National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters American Agricultural Editors' Association Livestock Publications Council
All content © Copyright 2014, Henderson Communications LLC. | User Agreement