03/20/2014
WASHINGTON, DC - In a revealing front page article, the Wall Street Journal reported today that U.S. food prices are expected to rise as much as 3.5% this year according to U.S. government data. Why? Mostly because of the ongoing record drought, but tight beef supplies, hog disease concerns, and rising global demand for both milk and cocoa are other factors driving higher food prices up. The official Bureau of Labor Statistics report comes out Tuesday and will likely point to food price increases maybe the most in three years.
The Journal's article included selected commodity price increases over the end of 2013. Examples included: Arabica coffee up 71.5%; Lean Hogs up 42.5%; Oats up 29.1%; Cocoa up 11.8%; Wheat up 11.4%; Live Cattle up 7.8%; and Raw sugar up 3.9%. These rising food prices and others will impact the entire food chain including consumers, food makers, restaurants, fast-food and food retailers. Higher food costs also present many businesses with the challenge of if or when to pass on higher prices to consumers who often foot the bill for higher commodity prices. Then there is the impact and needed adjustments that higher U.S. food prices will have on global economies and consumers.
The Wall Street Journal article is subscriber only or otherwise I would include the web address for the article.
