High gas prices won't drive up food prices

Oct 12, 2012

Record-high gas and diesel prices are putting economic pressure on agricultural operations, but it is unlikely to push up food prices, said a story by Associated Press reporter Gosia Wozniacka.

The cost of fuel is only a small percentage of the cost of farming and getting a product to store shelves, said Daniel Sumner, UC Cooperative Extension specialist in the Department of Agricultural and Resource Economics at UC Davis. Food prices will go up only by a few pennies on the dollar at most.

The small increase in cost, however, won't trickle down to growers.

"We farmers don't have any way to recoup the higher gas costs or pass them on to consumers, so we have to swallow them," said Fresno County farmer Keith Nilmeier, who grows apricots, peaches, nectarines, grapes and oranges.


By Jeannette E. Warnert
Author - Communications Specialist