How will consumers react?

What will consumers do? That's a big question going forward, as higher costs from pricier inputs and steeper truck rates take their toll on the margins of grower-shippers, wholesalers, retailers and on the budgets of consumers. Will consumers eat less food, cut down on use of their cars, or both? Since everything is costing more, will food be hurt more or less than other categories?

I just visited with another East Coast wholesaler who said the high cost of transportation from the West Coast may result in greater importance of local/regional vegetable production this summer. He said it is not unrealistic to think that $16 broccoli in New York City could be $8 freight, $2 to the wholesaler and $6 to the grower. That makes it tough for that West Coast grower to see much profit opportunity in that market.

Still, supply and demand will dictate what the market does, both for East Coast vegetables and West Coast produce. If consumers adjust more quickly than we think to higher costs, some the damaging effects of the fuel run up could be short lived. On the other hand....