Posted on 10/13/2021 3:25:43 AM PDT by gattaca
The CEO of Kraft Heinz, Miguel Patricio, warned that around the world and in the United States, people will have to get used to higher food prices due to “across the board” inflation.
“We are raising prices, where necessary, around the world,” he told the BBC, adding that his firm has increased prices on more than half its products in the United States, Kraft Heinze’s home market, in recent days.
The firm—famous for making tomato ketchup, baked beans, and macaroni and cheese—is dealing with a rapid increase in agricultural costs, including oils and cereals. The surge has pushed the global food price index to a decade high, according to September data released by the United Nations.
“Specifically in the UK, with the lack of truck drivers,” Patricio said, explaining why there is a surge in food price increases. “In [the] U.S., logistic costs also increased substantially, and there’s a shortage of labor in certain areas of the economy.”
The CEO, however, stated that not all costs should be passed on to consumers.
“I think it’s up to us, and to the industry, and to the other companies to try to minimize these price increases,” he added, noting that “there’s a lot to come in technology to improve the effectiveness of farmers” that may help.
But Kona Haque, head of research at the agricultural commodities firm ED&F Man, told the BBC that food giants like Kraft, PepsiCo, and Nestle will likely “have to pass that cost on to consumers.”
“Whether it’s corn, sugar, coffee, soybeans, palm oil, you name it, all of these basic food commodities have been rising,” she said, noting recent challenges to the global market.
“Poor harvests in Brazil, which is one of the world’s biggest agricultural exporters, drought in Russia, reduced planting in the U.S., and stockpiling in China have combined with more expensive fertilizer, energy, and shipping costs to push prices up,” Haque remarked.
In a letter to the U.S. Securities and Exchange Commission, PepsiCo recently warned it is facing rising costs on transports, raw ingredients, and more. Prices are expected to rise next year, the firm said.
“When prices increase, we may or may not pass on such increases to our customers without suffering reduced volume, revenue, margins, and operating results,” the firm said.
The U.N.’s Food and Agriculture Food Price Index rose even more in September 2021, up about 32 percent from September 2020.
It was, according to the U.N., “largely driven by higher prices of most cereals and vegetable oils” while “dairy and sugar prices were also firmer.” The meat price sub-index remained stable, the agency said.
David Ortega, associate professor and food economist at Michigan State University, said food prices will be impacted by a number of factors in the short term.
“Consumer behavior is changing and demand is increasing as consumers are starting to re-re-emerge from this latest surge of covid cases,” Ortega said in a recent interview. “There are some serious supply chain logistic issues which are affecting shipping and transportation times that are adding to rising costs. Labor shortages and rising wages are also partly to blame.”
Global Warming, Covid-19-20-21-2099.....etc. etc. etc.
Revelation 6:5-6
New Revised Standard Version
5 When he opened the third seal, I heard the third living creature call out, “Come!”[a] I looked, and there was a black horse! Its rider held a pair of scales in his hand, 6 and I heard what seemed to be a voice in the midst of the four living creatures saying, “A quart of wheat for a day’s pay,[b] and three quarts of barley for a day’s pay,[c] but do not damage the olive oil and the wine!”
My wife and I went to lunch yesterday at one of our favorite places, talking with the female bartender we know, she’s about 20-21 years old...
we were telling her anyone in her age group has never experienced anything we are going thru and it will only get worse....
She had no idea about the Gas Rationing we had under Jimmy Carter...
She had no idea about the misery index in those years, the unemployment rate added to the inflation at one time was over 20% when Carter was POTUS....
I think we are heading for a time that will be much worse than under Carter..
You have China inflicting one body blow to our economy after another, Covid, shipping issues, threats of military action against Taiwan, etc.....
You have a Pandemic with government trying to force people to take a shot against their will
You have deep divisions in our country
You have a Federal Reserve printing money so fast they can’t keep up with it..
You have Democrats pushing an insane Green New Deal agenda..which is creating energy shortages..
In the 1970’s we didn’t face nearly the number issues we are experiencing now....
Add it all up and you have a potential depression with runaway inflation....
Rises like this are PERMANENT, even if component cost reduce, the shelf price will remain at the ‘new normal’! This is how inflation robs and why the LEFT is, inherently, anti-poor & middle class! Big spending does lead to big inflation!
Instead, at school, she was taught by LEFTists, who spent the time teaching how evil conservatives have ruined society, environment, politics and the world!
The majority of people don’t really learn a lesson until something really bad happens...regardless of what they are taught in school....
A majority of Americans are about to learn a very valuable lesson about economics.....
If we only had a Republican Party that really preached this we might could make some headway...
I wouldn't be surprised if those shipping containers sitting off the coast are all empty. They may be waging war via a Winter starvation of the USA.
Lincoln log bush league "Republicans" voted for this, never forget.
“If we only had a Republican Party that really preached this we might could make some headway...”
If we only had a Republican Party that believed and acted in this manner, we might make some headway .... they squandered the opportunity when Trump was in the WH. Besides, our givernment is too big to succeed.
Good. Better honesty than 9 oz “pounds” of coffee, etc.
Yellen is an idiot who has no idea of Micro and Macro theory.
I cannot imagine the idiot has degrees in Econ. It is obvious
she is mental.
Kraft Heinz CEO is going to have to get used to customers buying less.
Inflation is transitory
The elections were secure
The vaccines are safe and effective
Yellen is an idiot who has no idea of Micro and Macro theory.
I cannot imagine the idiot has degrees in Econ. It is obvious
—
...as does the brain trust AOC.
I spoke with an engineer last week. It’s Carter all over again.
You get a quote in the morning that is obsolete by close of business.
Hey but...no more mean tweets, right?
Wiki states she graduated high school in 62? Heck she was not
16 until August.
“AOC”
When someone like that ignorant slunt has an econ degree, the university is a sham.
The government is greatly suppressing the real food inflation rate. We can all see the reality on the grocery receipts. It has to be north of 20% over the past 12 months, not the 5% the government is trying to sell.
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