Last year around this time, diesel prices averaged $3.42 a gallon in Missouri. Now that number is closer to $6.20. That increase has many sectors of the local economy roiling as it becomes more and more costly to receive and distribute goods via large trucks.
Food providers are particularly reliant on heavy freight for transportation. Thousands of pounds of cargo are carried from farms to warehouses to local storefronts every day, and that requires a lot of fuel.
Economists say consumers should expect their grocery store prices to increase as gas prices stay high. But not all food retailers are afforded that option to offset unexpected costs.
Food banks make up a particularly vulnerable sector right now. The Harvesters regional food bank delivers to 27 counties between Missouri and Kansas. Debbie Espinosa, the organization's president and CEO, keeps good track of how much those services cost.
“ We have a fleet of over 12 semi tractors plus a multitude of other box trucks. For one of those semi tractor-trailers, it's 200 gallons that we need to fill up on one of those tanks,” she said. “ Right now, we're at about $1,300 to fill it up. Last year we were at $746.”
Thomas Smith works on the agricultural side of food distribution. He helps lead the Kansas City Food Hub, a local co-op made up of small to medium sized farms.
The hub provides fresh produce to local institutions across the metro, including schools, hospitals and food pantries. He says their fuel expenses have risen by at least 45% in the past year.
“ I love Kansas City, and part of Kansas City is it being spread out. We have people all over the place,” Smith said. “That takes diesel or gasoline to make sure that we're able to drive and deliver that product to those different places.”
According to Smith, transportation is just one of the rising expenses on the balance sheet. Fuel is required to run farm equipment, generators and freezer units. As delivery costs rise, materials like work clothes and shipping boxes get more expensive as well.
Smith said they’re having to reduce deliveries to the more rural parts of the metro, in an attempt to keep costs down.
“We're doing less for the people who need it the most because it just doesn't make any financial sense for us to do it, and we are a business,” he said. “Some people are suffering as a result.”
Espinosa said the foods that Harvesters source from their partners are more expensive, but finding enough of it hasn’t been the problem.
“Our food supply is doing really well,” she said. “ You can have the food coming in, but can you get the food out?”
The Beacon reported on Harvesters back in April when prices first surged. But that was five months ago, when a gallon of diesel was a full dollar cheaper than it is today.
“ I think back in May, maybe we thought it was just a blip in the map, but what we're finding out now is that we really have to plan for the sustainability or the long haul of what this is going to look like,” Espinosa said.
She said that Harvesters is working within their budget to try cutting costs without leaving anyone behind. Part of that comes from putting out more calls to the community for financial help.
With high gas prices affecting everyone in the community, she hopes public support can make it so people don't have to choose between putting gas in their cars or eating.
- Thomas Smith, chief business officer, The Kansas City Food Hub
- Debbie Espinosa, president and CEO, Harvesters
