Posted on 08/08/2008 6:30:16 AM PDT by shrinkermd
Companies throughout the food chain are changing the way they do business in response to soaring grain costs, and consumers are likely to bear the brunt in the form of rising food prices.
Farmers are making the broadest cuts to their livestock herds in decades, meaning meat at the supermarket will likely cost more in coming years. Middlemen are trying to shorten the duration of supply contracts to 90 days from one year so they can pass on higher costs more quickly. And food brands are shrinking the contents of their packages, from ice-cream cartons to beverage containers.
...In another measure, the cost of the groceries that the federal government suggests middle-class families buy to have healthy diets rose 8.6% in June compared with the same month a year earlier.
Michael Swanson, an economist at Wells Fargo & Co., thinks the food inflation rate could rise as high as 6% next year. Paul Prentice, president of Farm Sector Economics, Colorado Springs, Colo., said he expects retail food prices to rise about 7.5% in 2009.
The U.S. Department of Agriculture sees food prices climbing 4.5% to 5.5% this year and 4% to 5% in 2009. Even under this more conservative forecast, the average family of four would see its annual food costs hit $9,800 in 2009, up about $1,200 since 2006.
Meat is a big reason economists think food inflation has legs.
(Excerpt) Read more at online.wsj.com ...
“Meat is a big reason economists think food inflation has legs.”
Time to ‘grow your own’ or learn to hunt and fish. :)
(This too, shall pass.)
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
THIS is what the pubs need to be shouting about (especially in Sen. and Congressional races.)
The inflation going on with food is a completely regressive tax that is the fault of the dims and any pub that won’t vote to DRILL HERE, DRILL NOW!
The real costs are in the minerals and supplements ranchers use to improve the yield of their herds.
Phosphorus is a primary ingredient in cattle supplements. Corn, which being used for ethanol, depletes the soil of phosphorus more than most crops. So, farmers are using more phosphorus and petroleum-based fertilizers.
Phosphorus is 3-4 times more expensive than a year ago (as I recall). Feed supplements are so expensive that ranchers can buy them. The cattle aren’t as large, there’s less beef...the price goes up.
This was predicted here on FR a few months ago. Enviro-wacko policies are hurting poor women, children and minorities.
Don't forget the boneheaded ethanol mandates that have us plowing 25 percent of our corn crop into a marginally-efficient fuel.
And farmers all over the country are replacing soybeans and other crops with corn as a result, which means across-the-board rises in crop prices.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Groceries used to be cheap at our WalMart, but now, nothing is cheap. Even WalMart prices on food are UP. All food prices are sky high now.
“consumers are likely to bear the brunt”
Likely?
My grocery bill is up by 50% in Ohio. In March, milk was 2.59 a gallon....I’m told to expect it to be $5.00 a gallon by end of summer.
CORRECTION: Feed supplements are so expensive ranchers CAN’T buty them.
We might be able to afford to eat Nancy’s book. Of course, it would only be good for roufage...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
It sounds like something a sick puppy would do on the carpet though.
Why does this always surprise idiots? Business are in business to make money. If their costs go up, they either pass the costs along and close up shop. Only idiots are surprised.
Don’t you mean Noodles O Bama?
Thank a Democrat.
I paid $5.29 for a gallon of milk yesterday in Florida.
LOL! Don't try another correction ... there is no telling what you'll type then. ;-)
Hey, that’s racist!
Need to shop smarter. I could feed a family of four very well for less than half that.
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