Wednesday, May 23, 2007

Why should we take cheap food as granted?

FT: Fears over food price inflation

Retail food prices are heading for their biggest annual increase in as much as 30 years, raising fears that the world faces an unprecedented period of food price inflation.

Prices have soared as the expanding biofuels industry, climate change and the growing prosperity of nations such as India and China push up the costs of farm commodities including wheat, corn, milk and oils.

Food companies have started passing on these increases to consumers, but the prospect of sustained commodity price rises means the industry’s profits could be hit as it is forced to absorb the higher costs itself.

Posted by trough2010 @ 10:53 PM (269 views) Add Comment

5 Comments

1. paul said...

"John Parker, food analyst at Deutsche Bank, said: “There is growing concern within the food industry that the present upswing in soft commodity prices is structural rather than cyclical.”

Take note, King of Wishful Thinking in the MPC.

Wednesday, May 23, 2007 11:23PM Report Comment
 

2. shipbuilder said...

As a country we need to start caring about food. If this means paying more so that farmers have more and Tescos less, all the better.

Wednesday, May 23, 2007 11:31PM Report Comment
 

3. Scott666 said...

At the moment you are paying more for food but due to the strength of the supermarkets Tesco etc (in the last few years) have increased their margins from around 1.5p per litre of milk to over 10p. There are supermarkets that try to implement a sustainable farming policy including Watrose, Co-op and M & S but the bigger chains don't seem to care much about the medium or long term of UK farming all they are interested in is fighting a battle with their competitors for market share. If you want to support UK farming and eat good quality food i'd recommend shopping at the aforementioned shops.....if all you care about is cheap food go to Tescos but remember when they have muscled all the competition out of the way you will pay more in the long run.

Thursday, May 24, 2007 12:35AM Report Comment
 

4. royston said...

Double-digit interest rates, here we come!

Thursday, May 24, 2007 10:09AM Report Comment
 

5. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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