March 2011

Food Prices Up As Global Costs Soar

As the world continues to experience radical climate changes and all-time natural disasters, commodities will continue to run late and yield failed crops and thus prompt unheard price hikes. A report by the World Bank reveals a jump of 29% of global food prices in the past year and just 3% below the all-time peak in 2008.

Economists are predicting higher prices in the coming months. China is experiencing inabilities to meet the demands of food supplies for its large population; drought and then flood in China, Thailand and Vietnam has affect low crop productions in mung beans, pumpkin seeds and fresh fruits, only to name a few; drought in Turkey has affected grape and apricot output while drought and flooding in Australia and Brazil has affected their export commodities.

On the Canadian front, we are paying 4% more on meat while 10.7% on sugar and confectionery. However the real pinch won’t come until the middle of 2011 when we check our grocery bills item by item. Due to high commodity prices, many packaged foods will be downsized to maintain competitiveness. Higher freight costs will also affect the prices we are paying at grocery stores.

Canadian Grocer, “Canadian food prices up slightly as world costs soar.” February 15, 2011.


Got something to say?

CommentLuv Enabled