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  1. #1
    Join Date
    Sep 2007
    Location
    Hudson, WI USA
    Posts
    2,360

    Default If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKPR?

    I was wondering if the prospect of the gas price staying depressed for a year will change the way you operate your commercial enterprise in 2015?

  2. #2

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    It won't but now if we could get Diesel back down in that range. I would move back to my other van. When the fields are dry. Other wise it is the 4x4

  3. #3
    Join Date
    Jan 2014
    Location
    Larimer County, CO, USA
    Posts
    384

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    It will make visiting our out yards cheaper.

  4. #4
    Join Date
    Dec 1999
    Location
    DuPage County, Illinois USA
    Posts
    9,998

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    Keep this conversation on beekeeping. I changed the thread title to reflect its focus on beekeeping. Keep it there.
    Regards, Barry

  5. #5
    Join Date
    Jan 2009
    Location
    Cookeville, TN, USA
    Posts
    4,252

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    All things being equal honey prices should rise because consumers will have more $ in their pockets. If honey goes up this year bees will go up next year. Then there will be a glut, gas will go up, the economy will crash and the zombies will take over. But predictions are often flawed - especially ones about the future. And all things are never equal.
    Since '09-30H-T-Z6b

  6. #6
    Join Date
    Apr 2014
    Location
    Fort Gay, WV, USA
    Posts
    1,524

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    [QUOTE=David LaFerney;1199437]All things being equal honey prices should rise because consumers will have more $ in their pockets. If honey goes up this year bees will go up next year.QUOTE]

    You've actually a great point there. It's sort of economics 101. We beekeepers are a cheap bunch when we can be. However, it doesn't change the structure of economics. If the consumers are paying less for gas, it means they have more available to pay for what they actually want. If said desire is more honey for the table then demand increases prices. That price increase drives the pricing for bees higher on all levels. Since the bees have gone up in cost this reason can be held as the reason to keep inflated honey pricing permanent. Then we have to look at the other reasons for higher cost of equipment as well. Equipment prices have gone up and remained there as well due to the increase in people wanting to become beekeepers and buying more equipment, again demand up - prices up.

    And just to think what a few extra dollars in the consumer's hands can do. I won't go as far to say the zombies will take over, but in reality if just 1 of the pieces of the puzzel falls apart, it all comes crashing down.
    Thomas Bartram - 43 - 8 F langs, 22 Italian & 21 Russian

  7. #7
    Join Date
    Jan 2003
    Location
    Manitoba Canada
    Posts
    7,015

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    In regards to the honey farm, the fuel price for me doesnt not mean a whole lot. But in regards to the grain and cattle farm, we are clicking our heals. We got a drop last week for 93cents. Its gotta be 5 years since we have seen that price.
    But dealing right now with our fertilzer retailers...and there is no down side to the bulk fert pricing... everything has been made and locked in at the high price... funny how the price can change going up but not down...!
    Ian Steppler >> Canadian Beekeeper's Blog
    www.stepplerfarms.com

  8. #8
    Join Date
    Feb 2006
    Location
    Herrick, SD USA
    Posts
    4,841

    Default Re: If gas prices stay low ($2/gallon average) what impact will it have for you?

    [QUOTE=drlonzo;1199486]
    Quote Originally Posted by David LaFerney View Post
    All things being equal honey prices should rise because consumers will have more $ in their pockets. If honey goes up this year bees will go up next year.QUOTE]

    You've actually a great point there. It's sort of economics 101. We beekeepers are a cheap bunch when we can be. However, it doesn't change the structure of economics. If the consumers are paying less for gas, it means they have more available to pay for what they actually want. If said desire is more honey for the table then demand increases prices. That price increase drives the pricing for bees higher on all levels. Since the bees have gone up in cost this reason can be held as the reason to keep inflated honey pricing permanent. Then we have to look at the other reasons for higher cost of equipment as well. Equipment prices have gone up and remained there as well due to the increase in people wanting to become beekeepers and buying more equipment, again demand up - prices up.

    And just to think what a few extra dollars in the consumer's hands can do. I won't go as far to say the zombies will take over, but in reality if just 1 of the pieces of the puzzel falls apart, it all comes crashing down.
    Perhaps, perhaps not. If you remember in the economic downturn honey sales increased along with candy sales. Comfort foods they call them, people grab some sweets in lieu of an expensive night out.
    "People will generally accept facts as truth only if the facts agree with what they already believe."- Andy Rooney

  9. #9
    Join Date
    Aug 2003
    Location
    Lancaster, Ky. / Frostproof Fl.
    Posts
    998

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    Wont affect most beeks as diesel hasnt dropped like gas. Big ripoff. But diesel and trucking is my biggest single cost so it will make usxa little more profitablle

  10. #10
    Join Date
    Apr 2009
    Location
    Issaquah,WA,USA
    Posts
    2,448

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    We need diesel to drop like gas. But, this is a shell game. People will think that gas prices being down means other things will go down. That is not true until Diesel goes down.

  11. #11
    Join Date
    Nov 2011
    Location
    jourdanton,texas
    Posts
    25

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    It means I will use the gas pickup to check outyards as much as I can and leave the diesel one tons at our shop.

  12. #12
    Join Date
    Dec 2012
    Location
    Sacramento, CA, USA
    Posts
    2,491

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    What goes up must come down. So what's down now will eventually go up again.
    How long this price will hold depends on how they play the price game. When they
    go up I will buy more. When the price is low and continue to bee I will buy 1/2 only. I don't think the
    price of gas will affect my beekeeping strategy to allocate my resources somewhere else. Other product price will
    offset the lower gas price too.
    I luv bee source!

  13. #13
    Join Date
    Dec 2005
    Location
    Brasher Falls, NY, USA
    Posts
    29,306

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    The only effect I have seen so far is I got $200.00 knocked off of my transportation bill when my bees were trucked 1,000 miles south back in November. Not even 10%. Otherwise I guess it could make what I do less expensive fuelwise, but I won't do anymore driving than usual just because the price of fuel is lower than it has been.
    "Most of my exercise comes from wrestling with pigs and beating dead horses."
    Mark Berninghausen



  14. #14
    Join Date
    Sep 2007
    Location
    Hudson, WI USA
    Posts
    2,360

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    Why is diesel not dropping as much? (re post #10) I thought they would go down together.

  15. #15
    Join Date
    Feb 2014
    Location
    Ottawa, ON
    Posts
    32

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    Quote Originally Posted by Adrian Quiney WI View Post
    Why is diesel not dropping as much? (re post #10) I thought they would go down together.
    One news item I read stated diesel is similar (manufacturing?) to heating oil. The winter demand for heating oil has offset the reduction in crude price. Demand for diesel/heating oil goes up in winter whereas demand for gas goes up in summer.

    Peter
    Ottawa. ON

  16. #16
    Join Date
    Sep 2005
    Location
    Greensboro, North Carolina
    Posts
    3,001

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    I've always viewed gas as an elastic commodity. If gas is $1 per gallon, then jumps up to $3 per gallon, will I visit the bee yard one third as often? Will I purchase one third as much gas? No. When the hives need to be checked, they need to be checked. When I need to go to work, I need to go to work. Regardless of the price of gas.

    Gas prices do affect me on the long term scale though. When I buy my next house, will I want it to be closer to my work, or do I mind it being a little further away into the country side? When I purchase my next car, am I going to look for something that has better gas mileage, or more pulling power? When I look for my next outyard, am I willing to drive 20 miles or 40 to get there? Long term gas prices affect these decisions. But monthly or weekly changes have nearly no impact here.

    The one place it may have an impact is on the consumer's side. While it doesn't impact my decisions, and doesn't impact my business practices, it may impact the consumer's. Lower gas prices mean more vacations, more willingness to purchase that car they have been putting off for a while, purchasing that larger home that they have been putting off. When gas prices drop 30%, if a family was spending $500 per month in gas (not uncommon), they've "found" $150 in their budget per month. That may be enough of a change to afford the monthly payment on the car or house, or may just put more spending money in their pockets. More money to buy value added products (hand creams, lotions, soaps, candles), more money to buy varietal honeys, but I doubt the volume of honey sales will increase.

    I can say that a decrease in gas prices will most likely create a decrease in 401k performance, which may initiate a change in Fed interest rates, which very well could cause another large crash.

  17. #17
    Join Date
    Nov 2006
    Location
    Tulsa, OK
    Posts
    3,802

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    Here in the oil patch, its going to mean more unemployed people with no money to splurge on delicious local honey. I don't use much gas pulling around my wagon.

  18. #18
    Join Date
    Jul 2013
    Location
    oroville california usa
    Posts
    80

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    Quote Originally Posted by Adrian Quiney WI View Post
    Why is diesel not dropping as much? (re post #10) I thought they would go down together.

    I have read that as they always say supply and demand europe has allot of diesel powered vehicles this makes demand high and keeps prices high as well

  19. #19
    Join Date
    Aug 2006
    Location
    Winston Salem , NC
    Posts
    229

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    Believe me, something else will eat up the difference!
    larry

  20. #20
    Join Date
    Dec 2012
    Location
    Sacramento, CA, USA
    Posts
    2,491

    Default Re: If gas prices stay low ($2/gal. aver.) what impact will it have for you as a BKP

    In the short term there will be not much of an impact. As long as people not drive up the
    demands then price (go hybrids) will be much the same and lower when production maintains. Before any
    changes take effect the long term trend has to be established first. Making decision on a short term
    basis will have many impacts later on. We are smart enough to know that the price of gas will go up and
    down thru out the year. I'll stay on the conservative side just to be safe for now. Just like the weather our
    economy is very volatile now.
    I luv bee source!

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