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Wednesday, February 9, 2011

Does anyone notice that food prices are rising?



Sysco profit falls as “extreme” meat, dairy inflation raises costs - (Drover's Cattle Network - 2/7/2011) -
Meat, seafood and dairy costs rose 11 percent to 12 percent during the quarter ended Jan. 1, Sysco executives said during a conference call today with analysts following the release of quarterly results. Those categories account for about a third of Sysco’s sales... Meat prices are expected to continue rising this year as soaring feed costs discourage herd expansion. That’s raising concern over consumers’ willingness to pay for steaks, chops and other pricier foods with unemployment still high... Sysco is North America’s largest food distributor to restaurants and has about 400,000 customers, including schools, hotels and prisons.

U.S. faces $70 billion inflation hit - CNNMoney.com - February 7, 2011
If the recent run-up in energy and agricultural commodities persists, U.S. consumers will have to shell out $20 billion more for energy and $50 billion more for food this year, Capital Economics estimates... And with all that, the bite from food inflation has yet to arrive. Capital Economics forecasts that the price shock will take nine months to show up at the grocery store. It says the food component of the consumer price index will rise at a 7% annual clip later this year, as rises in the costs of sugar, corn and other agricultural commodities work their way through the system.

Food inflation and QE2: the correlation is undeniable - The International Business Times - 2/3/2011 -
Experts can argue all they want about the causality relationship between food inflation and the Federal Reserve’s second round of quantitative easing (QE2). What cannot be denied, however, is the correlation. Indeed, ever since QE2 was clearly signaled by the Fed, the price of food commodities surged.

1 comment:

ant. a. said...

Hey Thom,

I had noticed and gardening is looking quite appealing. I know you're into it, so I thought you might dig these blogs a guy in my neighborhood started. He's pretty hard core sustainability oriented.

http://sustliving.blogspot.com/
http://homescalefood.blogspot.com/