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re: You want to know why food prices are rising?

Posted on 5/29/26 at 10:02 pm to
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477578 posts
Posted on 5/29/26 at 10:02 pm to
quote:


We produce urea here. You know, companies like CF industries, Dyno noble, nutrien?

It's a global market.

The ME accounts for about 1/3 of globally-traded urea.

The Iran War has completely disrupted this market, which has led to a dramatic increase in the price of urea on that global market AND limits the amount of fertilizer that can be produced globally. This will mean scarcity in fertilizer, food production, etc. Those are all global markets, too, which means the globe will see higher prices for those outputs.

Unless we can produce about 10x the urea we usually produce, I don't understand why our small 2-3% of global production matters in this discussion.
Posted by RobertFootball
SC
Member since Mar 2021
2650 posts
Posted on 5/29/26 at 10:07 pm to
Food prices are rising because we have sold most of our farmland to date centers and China, we sell most of our crops to China, and the cost of farming equipment is insane.
Posted by dovehunter
Baton Rouge
Member since Sep 2014
1918 posts
Posted on 5/29/26 at 10:10 pm to
See sulfur and sulfuric acid prices. This building block chemical is at historic highs. The Persian Gulf Conflict and China are causing this and in turn significantly increases fertilizer prices. China is the#1 producer of sulfuric acid and they have basically taken their supply off the market to protect their fertilizer and food production costs.

We are still way too dependent on China and the Middle East. This Iranian conflict must be taken seriously as there are so many repercussions to its outcome.

Posted by Vacherie Saint
Member since Aug 2015
47652 posts
Posted on 5/29/26 at 10:14 pm to
This is nothing new. Their legalized pot schemes were so crippled with regulations, taxes, and bureaucracy, growers who fought for legalization were forced back underground.

LINK
This post was edited on 5/29/26 at 10:16 pm
Posted by geauxbrown
Louisiana
Member since Oct 2006
27391 posts
Posted on 5/29/26 at 10:15 pm to
Do any of you care to take a guess at what it costs to fuel tractors and other equipment for a farming season on 5,000 acres of row crop?

Now guess what it costs to fertilize those 5,000 acres.

That’s why our groceries are so high.
Posted by stlslick
St.Louis,Mo
Member since Nov 2012
15024 posts
Posted on 5/29/26 at 10:39 pm to
investment firms are the destruction of this country

they monopolize businesses, by buying parts of companies, then buying parts of companies who are connected, then actually hold 20-30% pieces of every step of these businesses supply chains.

They invested into Ray ban/? , then invested heavily into largest eye insurance company, then into company who makes glasses. They control the market. They do this in large scale in many industries.

they even destroy companies, it's pathetic. Remember when they got their asses handed to them by the robin hood guys. Then cried to Government and NYSE about the bully being bullied, and had them make changes.

the investment firms are out of control.
Posted by Craig86
Florida
Member since Oct 2012
2090 posts
Posted on 5/30/26 at 12:51 am to
I can only speak of beef because that's the industry I work in, 16,000 ranchers go out of business every month in the United States.

There are four companies that are the cause for this and they are the buyers of the cattle. Tyson, Cargill,National, JBS.

It cost x amount to raise cattle, there used to be more companies that ranchers can sell to you and find a price that would fit, now there is just four companies and they low ball the ranchers so ranchers go out of business, these four companies decide the price, they make record profit, consumers pay the price.

Two of those companies are not even American companies the price of beef is decided in Brazil specifically Rio de Janeiro. The two companies are JBS and National.
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