Aug 06 2008
RamblerFood Prices - The Worst is Still Coming
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The USDA and major food companies warn food prices are about to get a lot higher. According to the U.S. Bureau of Labor Statistics, food prices rose 6.3 percent during the first five months of 2008.
Food manufacturers and wholesalers have been mostly absorbing fuel increases up to now but they say they can’t continue to do so for much longer.
The demand for corn ethanol has big corporations like Sara Lee and Kraft saying they expect to raise prices as much as 25 percent on products like macaroni and cheese, corn flakes and cookies. Basically anything that is made from corn or eats corn is going to go up dramatically over the next few years.
Fuel prices are a large factor in the price rise, but the cost of corn is pushing prices up more than anything.
Economists predict that this 25 percent increase won’t be the end. Food prices are expected to continue to climb throughout 2009.
| 3.9 (3 people) |
15 responses so far
How depressing!
What’s even worse, most of the food here in the US is devoid of proper nutrition, even the fresh stuff, because of the depletion of nutrients from the soil. So now we get to pay even more for empty food!
I guess it’s time to revisit the backyard garden idea.
BTW — I enjoy reading your blog!
~Hilary
Some experts say it would be more that 2009. They say it would affect us for the next five years. The rise of ethanol plants have raise corn prices. As a result, planting areas for wheat, barley & soybeans were converted to corn, resulting to scarcity and increasing prices. It’s real global crisis.
My boyfriend and I were just talking about this very thing yesterday. Everything is going to get more expensive in the next few years.
People should be upset to the point that they are not going to take it anymore. Boycotting gas has brought the price down. Pretty soon, folks are just going to grow their own food and then what will corporations do?
There have been several factors affecting the cost of our food lately. With the rising cost of fuel, natural disasters, salmonella scares and a spreading wheat disease, we can expect to see major increases.
I’m fortunate to have enough land to grow a few basic staples. Just this morning I brought in some new potatoes and green beans. I expect I’ll be shopping local farmers markets soon. I hope to buy some fresh vegetables locally to freeze for the winter.
I’ve always enjoyed my visits to your blog and will soon be adding a permanent link to here on my own. Keep up the good work!
There’s actually a great article about these issues over at AlterNet. We’ll see if this get me booted to the spam filter…
[url='http://www.alternet.org/workplace/93170/how_to_survive_the_triple_whammy_of_energy%2C_food_and_climate_crises/']How to Survive the Triple Whammy of Energy, Food and Climate Crises[/url]
I can’t remember if this is covered in the article… But it is interesting that ethanol production is driving up the price of corn which drives up the cost of food depending on the same product. Then fuel costs go up, so ethanol demand increases… The cycle gets a vicious fast.
Biofuel is not the main factor that food price is rising, although it is part of the blame. I just want to bring up the point that, if American are worry about food prices going up, imagine how the poor countries are dealing with this problem. They, unlike us American, use a higher proportion of their income on food.
This apply to the low income family in America as well.
The government is more worry about the price of fuel then it is worrying about the price of food. There is something wrong with that.
with three growing teens in the house this is news that is not enjoyed to hear but a reality, we just have to learn to budget more and seek for the best buys and stock up when and where we can. another thing I have noticed as of late is that most stores are starting to put very stringent limits on sale items.
That is so scary to read but it’s the reality.In some developing countries,people are fighting over food.Poor people cannot afford to buy their food..or whatever..
SIGH..
it sounds like “processed” foods are gaining in price, not necessarily other items. In fact, I bought a bread maker, and a few cookbooks, and have actually seen a sharp decline in my food bills by simply making most of my food.
It’s not hard to save money at the supermarket, it’s just a matter of planning ahead and executing the plan. Not hard, even with kids.
We’ll have to eat less, which wouldn’t be a bad thing for a lot of people! (me included..lol)
I wonder just how much of a bad thing this is. If there is significant impact to the price of Corn Syrup, I imagine that will disproportionately impact the less healthy, highly processed food. Perhaps the higher prices will result in smaller portions of those foods or make heathier foods a more attractive alternative. That might not be a bad thing for the country.
I can’t believe how much my grocery bill has gone up in the past 6 months or so. I’ve even tried to keep it where I was before and still end up $50 or more over! Ugh!
I would stock up on all the staples, unfortunately I don’t have a lot of storage space. It’s really the best thing you can do. The art of home canning and “Victory Gardens” will be on the increase in the near future, too.
Man, we are seriously going to be eating a lot of mac n cheese