Rising food prices you’ll feel the most
Expect to pay more for groceries these popular because of shortages in the world.
Prices are up in grocery stores across the country. You may not notice changes right away, that bread can be only one cent more expensive than last year. Soda that you buy may be the same price but it is now 1.5 liters instead of two. Many major cereal manufacturers such as General Mills, warned of impending price increases.
Why Grocery Prices Going Up ?
While nearly all grocery aisles is affected by rising prices, a large part of the reason all comes down to two commodities: wheat and corn. The two staples have been hit hard over the last two years – a combination of climate change, natural disasters and crop diseases. Russia experienced a severe drought for two years and had stopped completely wheat exports to ensure sufficient domestic supply. They resumed limited exports of July 2011, but supplies are still far away. A disease called Ug99 wheat rust destroyed crops across Africa and spread to other wheat producing countries at a rapid pace.
There was a lot of bad harvests corn in North America as well, but the real culprit for corn is that it is used to make ethanol, a fuel probably sustainable. Hundreds of thousands of acres that once grew corn for the people now grow it to fuel our cars.
At first glance it may seem that these increases does not mean you will pay more for a few grocery items such as bread and popcorn, but wheat and corn are included in the vast majority of food you can eat every day. Here are four areas where you will see higher prices.
1. Cereals, breads and pasta products
Most cereals are made from corn and they will be hit hard by price increases in the coming year. The commodity price of corn has nearly doubled since 2010 and is rising again due to the massive drought in Texas is facing. Bread, rolls, cakes and biscuits will all rise in prices of steep jump in the price of wheat. According to food manufacturers, the industry has been holding the increase in retail prices, but can not absorb the costs any longer.
Most treaties “candy” soda biscuits with jam, are made with corn syrup, high fructose. The lack of corn supply is causing prices to increase in these areas regularly. Beware of packages decreases, as well. Many companies will keep the same price but lower the amount you get.
3. Beef, pork and chicken
Almost all industrialized meat fed with corn, mainly because it was the cheapest food available. As the price of corn increases, there is still no cheaper alternative, so the price of meat increases due to the rising price of entry.
4. Cat and Dog Food
Pet food contains grains in one of two ways: treatment of dry foods often contain corn as one of its primary ingredients and canned food contains pieces of meat or wheat-based thickeners. It’s not just the cost of food will rise.
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