KNOXVILLE, Tenn. (Story courtesy of WVLT) – A hot meal and a quick visit at the door can be a lifeline for homebound seniors in Knox County, but the cost of getting food from the kitchen to their kitchen table is climbing fast, and relief may be months away.
Inside the Community Action Committee’s Mobile Meals kitchen, hundreds of meals are prepped and sent out every day as part of a program serving nearly 1,900 Knox County seniors. But the cost to keep those meals moving has been climbing for years, and fuel prices are making it worse.
“Our goal is to make sure that we’re serving as many people as possible,” said Judith Pelot, director of nutrition services at CAC. “When we have to spend more money on resources, then that gives us less ability to take care of people.”
Thomas Goldsby, professor of supply chain management at the University of Tennessee, Knoxville, said uncertainty is the fundamental reason prices remain elevated.
Oil and gas are global commodities, Goldsby said. U.S. producers seek higher international prices, and constraints on global supply drive up costs domestically.
Even if conditions stabilize, Goldsby said consumers should not expect immediate relief at the pump due to a common economic phenomenon called “rockets and feathers.”
“Prices rise immediately at the gas pump as soon as oil prices rise,” Goldsby said. “But meanwhile, prices tend to flutter very slowly back to the earth once oil prices drop.”
Ships released from Saudi Arabia take three to four weeks to reach terminals in Asia, Europe or the United States. Then it takes additional weeks before oil makes its way through refineries and into gas tanks.
The cost of doing business is increasing whether an organization is for-profit or nonprofit, Goldsby said.
At the same time, donations are declining as consumers pull back on spending.
“The consumer is just very stressed right now,” Goldsby said. “It’s altering our behavior as consumers. And it’s not just in terms of what we buy and how much we buy, but also maybe how we give.”
When times are uncertain, people tend to keep things closer to the vest. That might mean they are not as generous as they might otherwise be.
“I’m really hoping the cost will stabilize,” Pelot said.
Demand keeps growing, with routes now carrying close to 1,200 meals a day, up from 1,100 a couple of years ago. CAC has not cut services and has no waiting list, but officials say that could change.
“If you tell a senior that you’re unable to bring food to them because we just don’t have a spot for them on the routes, then that’s something that we really don’t want to do,” Pelot said.
Goldsby said he expects uncertainty to continue for several more months, even if conditions stabilize.
“The need is only going to continue to become greater as we see more and more people in need,” Goldsby said. “The business of nonprofits is more important now and will continue to be ever so important moving forward as we unfortunately continue to be in highly uncertain economic times.”
The organization does offer mileage reimbursement for volunteers who want it, but many still choose to cover that themselves just to help serve the community.
