September 08, 2010
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Store prices rise with crop prices
Updated On: Oct 08, 2008 (08:03:00)

Rise in commodity prices, especially grains, causes a rise in many livestock and product prices 

  • Corn is used as feed for pigs, cattle, and poultry, which increases the price for these meats, and for such additional products as eggs and dairy products.
  • In the past year, egg prices rose 60%. 
  • Corn is used for high fructose corn syrup, which in turn is used in many products. 

“Dairy products, meats and other staples are almost without exception outpacing the overall food and beverage inflation rate of 5.9 percent. The truth is food prices are facing the same inflationary pressures as the rest of the economy, namely rising costs for energy, oil, commodities and fertilizer, experts say.”
         “Staple Food Prices on the Rise,” September 18, 2008. Kyle Arnold.TulsaWorld.com

Farmers plant more of the products that are earning high dollars in the commodity market.

  • Farmers plant the corn, wheat and soy that are in high demand, and reduce the supply of other crops and the final products that they are part of.
  • Many vegetables, beans and food products are affected.  

In the past year, pasta products prices are up 30%, and fruits and vegetables are up 20%.

“The Nation’s Food Basket: Prices Soar,” July 21, 2008.  Staff writers.  Progressive Grocer.

 The peanut crop is down, due to farmer's planting more profitable crops like corn. Peanut butter consumer prices should rise.

"Peanut Butter Likely to Cost you More Bread," August 8, 2008. Shelley Shelton. Arizona Daily Star.

All of the above information is presented as evidence of research and public opinion. We do not claim to list all of the relevant factors in food price inflation. Nor do we endorse any specific opinion or research.

 






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