"Prices are on the rise in grocery stores across the country. You may not notice the changes right away; that loaf of bread may be only a dime more expensive than it was last year. The soda you buy may be the same price but it's now 1.5 liters instead of two. Many of the major cereal manufacturers, such as General Mills, have warned of impending price increases.
Why Are Grocery Prices Going Up?
While almost every grocery store aisle is affected by rising prices, a large part of the reason all comes down to two commodities: wheat and corn. Both food staples have been hit hard for the past two years - a combination of climate change, natural disasters and crop disease. Russia has experienced severe drought for the past two years and had stopped exporting wheat altogether to ensure enough of a domestic supply. They have resumed limited exports as of July 2011 but supplies are still short. A disease called wheat rust UG99 has wiped out crops across Africa and is spreading to other wheat-producing countries at a rapid pace.
There have been many corn crop failures across North America also, but the real culprit for corn is that it is being used to make ethanol, an arguably sustainable fuel. Hundreds of thousands of acres that once grew corn for people now grow it to power our cars.
At first glance, it may seem like these increases will only mean you'll be paying more for a few grocery items like bread and popcorn, but wheat and corn are included in the vast majority of foods that you may eat every day. Here are four areas where you will see rising prices.
1. Cereals, Breads and Pasta Products
Most processed cereals are made from corn and these will be hit hard by price increases in the next year. The commodity price of corn has nearly doubled since 2010 and is rising again due to the massive drought Texas is facing. Breads, rolls, cakes and cookies will all rise in price from the steep jump in the price of wheat. According to food manufacturers, the industry has been holding back from increasing retail prices but cannot absorb the costs any longer.
2. Sweets
Most processed "sweets," from soda to cookies to jam, are made with high fructose corn syrup. The lack of corn supply is causing prices in these areas to steadily rise. Watch out for shrinking packages, as well. Many companies will keep the same price point but drop the amount you get.
3. Beef, Pork and Chicken
Almost all industrialized meats fed on corn, mainly because it was the cheapest feed available. As the price of corn rises, there are still no cheaper alternatives, so the price of meat rises because of the higher input price.
4. Cat and Dog Food
Pet food contains grains in one of two ways: processed dry food often contains corn as one of its primary ingredients and canned food contains meat chunks or wheat-based thickeners. It's not just the cost of human food that will go up.
The Bottom Line
You might not be able to do anything directly about rising grain prices, but you can shop smarter. Look for loss leader sales on those groceries that you purchase regularly. Make more of your own food directly from raw ingredients, such as cookies and rolls. Pet food can be stored for six months to a year so stock up when you can find a good price. Paying more attention to prices in the grocery store will help you stretch your food budget the farthest."
This could just fizzle and turn out to be nothing at all, though I suspect that it will actually end up being a violent spectacle. This "protest" is being incited and championed by the same wonderful people that brought your the violent Days of Rage protests that hit Chicago in 1969. A leader of this "Occupation of Wall Street" is also one from the Chicago protest that advocated Kill all the rich people. Break up their cars and apartments. Bring the revolution home, kill your parentsthats where its really at. The stated goal is to bring about "our Tahrir moment", referencing Tahrir Square in Egypt.
The fortunes of U.S. banks are closely linked to their European counterparts, and the Treasury Department is worried that problems at European banks could lead to a contagion that afflicts U.S. institutions.
Besides the trillions of dollars printed by the Federal Reserve in an effort to prop up the U.S. economy, the first ever audit of the Fed revealed that they secretly loaned European banks in excess of 16 trillion dollars. With the European Union in deep trouble and the growing likelihood of major bank failures within the Eurozone, the Fed has now agreed to pump hundreds of billions more into their system. BTW, the Senate quietly approved the additional $500 billion debt increase last week, and our debt has now grown larger than our entire GDP.
Mr Li, one of three outside academics on China's MPC, described the debt deals on Capitol Hill as "just trying to by time", saying it will not be enough to stop America's "debt dynamic" turning dangerous.
China is starting to see the handwriting on the wall.
Thanks Mark. I also read in the Blaze that the Glenn Beck on-line TV show now has 230,000 fulltime subscribers. That's more that twice the subscribers that Opra has. Yeaaaaaaaaa!
The "Day of Rage" - what a joke. Here is an excerpt from the article: A US Day of Rage is the title given to a day of ostensibly non-violent civil disobedience orchestrated by a group of radicals that reportedly include SEIUs Stephen Lerner and ACORN founder Wade Rathke (who, coincidentally, formerly served as president of SEIUs local New Orleans branch) targeting Wall Street and U.S. capitalism. Its worth noting that the title of the movement if its intentions are indeed non-violent in nature appears to contradict itself slightly.
It sounds like the Chicago Politics Gang is at it again.
So my Auntie who lives in Mo called me a week or so ago. She has seen the price of corn and wheat in her area almost double. So we were talking about ordering the organic grains from Azure Standard. yes they ship all the way to MO.
She suggested if I was going to get any I should do it soon.
So I went on line and ordered a few bags of the chicken wheat, oats and barley I think it was. The prices are fab and I cant get anything near that cheap where I live. Let alone organic.
She had ordered some as well.
I got my order last Tuesday. All went well, the coffers are full.
Auntie called me last night. Her order was due for pick up this Thursday. They have no wheat left for her. She was teasing and said someone in Ca bought too much.
Really it was not me.
Anyways. Azure Standard sold out of chicken wheat this month. Makes you think.
What is a green bell pepper worth to you? Myself and many local gardeners had a terrible green pepper crop this year. Consensus is that temperature fluctuations hit our local area hard this spring and stunted the plants. The farm stand down the road from me had 1000 (yes that is a thousand) plants and never got a single pepper. To me a green pepper is a "must have" for salsa (I put up 24 pints this summer) so off to the grocery store I go, I couldn't believe my eyes they were asking $4.00 for three peppers. They are in season!!! Finally I took a 13 mile drive to a neighboring town's farm market where I found them 6 for $1.00. They weren't very large but at least I didn't have to dig in my pocket up to my elbow to pay for them. That being the price now I can just imagine what they will be asking for them this winter.
ETA... Speaking of "trash index" I happened to notice that they now have padlocks on their dumpsters in back. Must be that garbage is becoming more and more valuable.
It has probably been a while since I had to buy them but I don't ever remember paying more than 25 cents apiece for them in season. I walked out of that store empty handed. I refused to pay $1.33 each. I had a great tomatoe crop so I never even looked at what they were asking for those. In hindsight I'm glad I didn't. I will be going back to the farm market and buying a couple dozen more to freeze for this winter.