Wednesday, September 7, 2011

Ways Rising Food Costs Will Eat Your $

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I wanted to share an article that I read this morning with you because I feel the contents are important. I think this information is particularly valuable to those of you who are LDS as you think about food storage and what to store more of in the days ahead.

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I know this is "corny" but he that hath "ears" to hear...

Insert Smiley Face here! ;-D

OK here's the article...

This is written by Angie Mohr @ Financially Fit.

"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 article is part of a series related to being Financially Fit"

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This is me now...Food for thought, isn't it? I want to store more wheat, not cookies! There is always so much to think about, isn't there? Honestly, it could make you crazy if you let it all descend upon you at once. One Day at a Time...we can do this. Who is with me as we try to keep up the with ever-increasing pace of these latter days?

3 comments:

Sister Susie said...

I've been "stock piling" rice, pastas, and dried beans of different kinds in containers that protect against possible bugs. Also, individual packs of instant oatmeals and cream of wheat. I've been putting the boxes inside of air tight containers. Dehydrated fruits and vegetables are good too.
Don't get me wrong, I'm really not a fanatic. But, the way the world is going, you never know. Thank you for your blog on this matter.
Love to you and yours,
Susan

Julie Harward said...

Thanks for your visit...this is a good article for sure. I am so glad that we have been taught for so many years about all of this, and I am glad that we are not raising a big family right now too...the world has changed so!

LA Adams said...

So Bonnie, where can we store this stuff? I certainly don't have a 2 year supply of food, and I found my cans in the garage exploded, so I hauled what I have in the house. Something tells me I haven't got it figured out yet. Having stacks of cans and bags isn't so great either. I like Susan's idea of tight containers - any other ideas?