As prices continue to climb on the grocery store shelves, upset consumers are looking for someone to blame.
“Though several factors contribute to increased food costs, farm commodities continually receive the blame, but farm products represent only 19% of retail food prices. Prices of many agricultural commodities are still less than the levels that sparked 2008 food riots and real food prices have decreased 75% since 1950,” said Dwayne Siekman, CEO of the Ohio Corn and Wheat Growers Association. “Yes, grain prices are at increased levels. So, too, are the costs of supplementary root causes of increased grocery store prices including labor, energy, product marketing/packaging/shipping and speculation of the commodity markets. In fact, producer prices increased 3.6% throughout the past 12 months, according to a recent Bloomberg story. It also noted that growing economies in Asia and Latin America are boosting global demand for oil and other imported commodities, which increases input costs for American businesses.”
Siekman points to the high oil prices and higher prices for imported food due to the weak dollar on the world market as other significant factors causing higher food prices. … Continue readingRead More »