Safecastle | One Shop For All Emergency Essentials: Food Prices to Jump Steeply

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Sunday, July 20, 2008

Food Prices to Jump Steeply

In my last post here, I indicated that food prices are about to jump about 10% across the board. According to this article, that would be quite a conservative estimate. (I was basing my warning on near-term price hikes I have been notified of already.)

I say again--the smart money today is going into storable food that you buy at today's prices. It's a lock ... you can count on that money invested in something essential to your survival appreciating in value in short order.

US food groups plan hefty price rises

By Elizabeth Rigby in London and Hal Weitzman in Chicago
Published: July 20 2008 17:15 | Last updated: July 20 2008 17:15

US food companies are preparing another round of hefty price increases as soaring commodity costs force them to pass on rises to consumers.

Sara Lee, maker of meat products such as Jimmy Dean sausages, said costs would compel it to push up prices on meat lines by up to a fifth later this year.

“We will be taking price increases on the vast majority of the protein products in this calendar year,” said C.J. Fraleigh, Sara Lee’s chief operating officer for North America, in a recent interview.

“Price increases vary a lot by type of products but the increases will be as low as zero and some products we will decrease on and other increases [will be] in excess of 20 per cent.” Kraft Foods, Kellogg’s, ConAgra and Tyson are also pushing through increases, which are expected to contribute to inflationary pressures in the US.

US food prices have jumped 5.3 per cent for the year ending in June, the Department of Labor reported last week, adding to the pressures on Americans from rising unemployment, a slumping housing market and higher petrol prices.

The increase in food prices was steep in June, when they moved up 0.8 per cent compared with 0.3 per cent in May.

Crop prices have boomed in recent months on the back of strong demand from emerging economies and supply concerns following floods across the agricultural lands of the US Midwest.

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2 comments:

The last cause said...

Hello,

I'm trying to run a blog about the benefits of the Alpha Strategy for people to use in this inflationary time, and I must say that your Blog has the best and most up to date information on the rises in cost of consummables, so I would like to ask permission to use your updates on price hikes by the likes of Conagra and Sara Lee in order to reconcile the Alpha Strategy in a real world manner.

My blog is "The Last Cause" and if a "no" is in the cards then I certainly can understand that.

Sincerely

Andrew/The Last Cause.

Jeff Varnell said...

Hi Andrew. I don't know how to contact you, but yes, you can feel free to reference our posts. Many of them are of course from other sources, so it might be wise to ultimatelly credit them.

Vic (JC Refuge)