Fuel Price

rob faux wrote:

TNaicker wrote: Don't think that you can get a 500% reduction in anything...max decrease will be from highest point to zero which would be a 100% reduction...

I do understand the point though...just that the Maths does not seem to be correct...

Sorry ..................the oil price was in fairly recent times, over 500% higher :woohoo: ...........forgot we had accountants on the site (and I did apologise for my maths )

@rob...no worries...I got what you were trying to point out...Maths can be weird at times....you can have any increase of close to infinity from the base you working from but the maximum decrease you can have is limited to 100% (from whatever base down to 0)...and oil is not going to get to 0...

The record peak for oil was US$145 in July 2008 which is about 5+ times the recent low...

Sorry to bring up a very sensitive point but there was reports in the newspapers that desperate farmers would be obliged to sell all their livestock to generate some Income.
This was followed by a statementthat the price of meat would increase!
How does that come about?

Farawaysaint wrote: Sorry to bring up a very sensitive point but there was reports in the newspapers that desperate farmers would be obliged to sell all their livestock to generate some Income.
This was followed by a statementthat the price of meat would increase!
How does that come about?

@Farawaysaint...will try to make sense of it all...

Seems contradictory that increase supply of livestock would lead to increase in price of meat...

My thinking is that if livestock is sold now to raise funds and that livestock is used for consumption, it will lead to a short-term price decrease (increased supply of meat) but long-term increase in price of meat as supply will be restricted in the future due to curtailed breeding from currently having to sell...

Forgive my ignorance as I am not a farmer...

I'm assuming that livestock has two purposes...one, current consumption and, secondly, breeding to increase numbers for future consumption...

If more numbers from existing livestock are sold for current consumption (to raise funds), it reduces numbers available for breeding to increase numbers for future consumption...hence, short term increase in supply (lower meat price) but long term decrease in supply (higher meat price)...

I raised the same question to a farmer mate of mine. His answer was that we are exporting huge quantities of meat at the moment and this has a direct influence on our domestic meat price. :pinch: :sick: :huh:

neigh wrote: I raised the same question to a farmer mate of mine. His answer was that we are exporting huge quantities of meat at the moment and this has a direct influence on our domestic meat price. :pinch: :sick: :huh:

Makes a lot of sense...if you export, it reduces what is available for domestic consumption (decreased supply) thus increasing price...and I can understand the want to export and the foreign demand with the Rand as weak as it is...