Cross-Elasticity: Fertilisers and Bio-solids!

Countryfile is one of my favourite television programmes - a rich source of background on the ever-evolving rural scene and the challenges and opportunities facing the UK farming industry. Last Sunday featured a programme on the growing demand for and use of bio-solids in food production in the UK. It provides a good example of cross-price elasticity of demand!

Bio-solids is treated human sewage or sludge to you and me - and it is increasing being used to grow crops such as corn and maize.

The main reason? Probably price and cost.

Fertiliser prices have been driven upwards by the rising cost of oil and it appears that biosolids now provide a close substitute for some farmers - indeed there are cost savings of up to ninety per cent with no loss of food yields.

Biosolids are heavily regulated - and Anglian Water in the UK is one of the latest companies to have invested millions in a new Biosolids Treatment Centre at Clenchwarton, Kings Lynn - this is a state of the art plant designed to meet the strictest health standards and - perhaps more importantly - to reduce the odours affecting nearby residents!

How happy would you be to eat your breakfast cereals manufactured from corn grown with the aid of treated waster water? Although UK supermarkets have different policies on this, you may have already done so!

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