Crop Yield Raises Risk to Food Cost

Posted by erauch, August 12, 2011

Consumers can expect to see a jump in prices for pasta, meat, vegetable oil and many other grocery items in the coming months as a pair of new government reports forecast on Thursday that a brutal mixture of heat, drought or flooding has taken a toll on the corn, soybeans and wheat grown on American farms.

Futures prices for those important crops jumped on Thursday, and commodities experts said that would lead to higher prices for manufacturers and consumers.

“The message, based on today’s report, is these higher costs should not be expected to abate any time soon,” said Bill G. Lapp, president of Advanced Economic Solutions, a commodity consulting firm that works with restaurant companies and food manufacturers. “It implies higher cost forthcoming and subsequent margin pressure, and at some point the need to increase prices at the retail level or on the menus.”

via http://www.nytimes.com/2011/08/12/business/corn-and-soybean-prices-rise-after-usda-report.html?_r=1&ref=business

Recent Headlines