So,
what are you gonna talk
about this month?
How about hurricanes? Let’s
talk about Katrina, Rita
and all the others ravaging
the U.S. shores of Gulf
of Mexico and pushing the
price of gas to mind-boggling
heights. This rude escalation
in the price of crude –
albeit temporary, you’ll
see – has brought
to light something rather
disquieting: the vulnerability
of our agri-food complex.
Even if there is an abundance
and diversity of food –
over 20,000 products are
currently available in supermarkets
– this is in large
part because of relatively
low oil prices. In short,
there’s a shameful
affability in the oil-food
relationship.
I was reading in a recent
issue of La Terre de chez
nous that the rise in oil
prices would penalize Quebec
producers at the rate of
$60 million. Dreadful, and
that’s only what we
can see! Because on a farm,
fuel and electricity represent
only 40% of all energy costs.
What we can’t see
is included in essential
inputs, such as pesticides,
plastic skins and fertilizers.
Have you ever thought about
the phenomenal quantity
of energy required to extract,
process and transport potash
or phosphate from countries
as far away as China, Russia,
the U.S. or even western
Canada?
But that’s not all.
In a food system as modern
as our own, the energy consumed
by a farm represents a mere
20% of the total energy
bill! As the old adage goes,
this is only the tip of
the iceberg! The other 80%
is used for transporting,
packaging, selling, refrigerating
and preparing food in the
home. Furthermore, more
a product is sophisticated,
pre-packaged, jazzed up,
colourful, over-processed,
over-packaged, and frozen,
the higher the energy bill.
Oil is our food system’s
Achilles heel.
When the price of energy
becomes too high, three
trends become apparent:
less fortunate consumers
increasingly depend on basic
products, such as steak,
corn and potatoes. Then,
farm proximity becomes increasingly
attractive (transporting
kiwis over 12,000 km is
obviously more expensive
than turning our bruised
apples into apple sauce)
and farm management as well
as the logistics for the
whole system become tighter.
In Chinese, the pictogram
that defines the word “crisis”
includes two elements: one
is catastrophe, and the
other is opportunity. Every
crisis is comprised of opportunity!
What didn’t make sense
six months ago has become
“whack” today.
For example, the farmer’s
job is being called upon
to evolve. Feeding the world
in no longer enough; farmers
are now required to warm
up the world. Traditionally,
this was done with fire
wood, now, they’ll
be doing it with biodiesel,
ethanol, upgraded residues
and even wind power!
Okay, let’s not get
too agitated! We’re
not there yet. Our own in-house
expert, working with Sonic,
believes that current sky-high
oil prices are only temporary
and those prices will be
progressively lowered throughout
the next few months, more
specifically in the first
quarter of 2006. That’s
good news Mr. Dupont.
I still want to say that,
when looking forward, we
had better keep in mind
that farm energy production
and energy conservation
programs will become unavoidable.
We’ll see such programs
applied to cultivation methods,
to the construction of increasingly
solar-powered buildings,
to ethanol production, to
the purchase of “fancy”
machinery and to the construction
of large blade wind systems…
But that’s just me,
don’t feel obligated
or anything.