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southern oregon | "The tricky part of analyzing these markets is to observe foreign demand for quality food gain on the USA domestic demand. After this current period of financial turmoil, perhaps 10 years from now, a large proportion of USA citizens are going to be on the poverty rolls. A greater proportion of their income will be required to buy food which will impact transportation patterns and housing."
A very interesting point, which surprisingly to me, appears to now be coming into play. In the PNW, China, and other importers have been out bidding dairies and other domestic users for alfalfa. When various freight and handling charges are included, the Chinese must be paying close to double what their American counterpart can afford to pay. Of course it's not just alfalfa or farm commodities, China in particular has the dollars to outbid the US for hard assets of all kinds.
A major seachange is underway, volatility and disruption of the status quo appears almost certain.
Edited by JR Or 9/26/2010 15:56
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Grain stocks article..
