MNeagle
5th January 2011, 05:17 PM
A big breakfast gets pricey
Eaters stomach rising costs for meats and coffee
SAN FRANCISCO (MarketWatch) — Families that enjoy a big breakfast are paying bigger prices.
Compared to a year ago, a pound of bacon costs 44% more at the retail level, sliced deli ham is up 11% per pound, and a dozen eggs cost 3% more, according to the latest informal data complied by the American Farm Bureau, which surveys U.S. supermarket prices in 29 states.
A caffeine jolt will hit your budget, too. The price to buy a pound of ground roasted coffee costs $4.47, up 22%, or 80 cents per pound from a year ago, according to the Bureau of Labor Statistics.
http://www.marketwatch.com/story/breakfast-lovers-digest-rising-prices-2011-01-05?siteid=rss&rss=1
Rising commodity prices for everything from coffee to sugar are driving up grocery bills. Among the culprits: Rising demand from emerging economies, bad weather hitting crops worldwide and investor speculation.
Meat prices have sizzled following a painful restructuring by U.S. beef and pork producers who sharply cut the size of their herds when the global economy tanked in 2008. This drove up lean hog prices.
“Increasing our nation’s livestock herd to meeting growing demand for meat and dairy products takes time so we are likely to see retail prices continue to increase for some foods throughout 2011,” said American Farm Bureau economist John Anderson.
In 2010, J.M. Smucker /quotes/comstock/13*!sjm/quotes/nls/sjm (SJM 63.25, -0.04, -0.06%) raised the price of its Folgers coffee 13%. Kraft Foods /quotes/comstock/13*!kft/quotes/nls/kft (KFT 31.53, -0.07, -0.22%) raised prices on its Maxwell House coffee 12% last month. The price hikes came as coffee futures hit a 13-year high.
Sugar futures jumped 19% last year, while corn surged 52% and soybeans rose 34%. The commodities spike is making major U.S. food companies rethink discounting strategies used last year to lure shoppers.
Most producers are raising prices on certain food items. These companies include General Mills /quotes/comstock/13*!gis/quotes/nls/gis (GIS 36.62, +0.93, +2.61%) , ConAgra Foods /quotes/comstock/13*!cag/quotes/nls/cag (CAG 22.69, +0.05, +0.22%) , Sara Lee /quotes/comstock/13*!sle/quotes/nls/sle (SLE 17.46, +0.05, +0.29%) and Kellogg /quotes/comstock/13*!k/quotes/nls/k (K 51.07, -0.22, -0.43%) .
The increasing price for food and cooking oils are being felt around the world. Lower-income earners in India are bemoaning the rising cost of onions, while cooking oil costs are going up in China.
World food prices in December hit a record high, surpassing the June 2008 peak, according to an index of 55 food commodities compiled by the United Nation’s Food and Agricultural Organization.
The December 2010 index reading hit 214.7 points, topping the previous all-time high of 213.5 points in June 2008, the last time agricultural commodities skyrocketed, sparking deadly riots in Haiti and Egypt.
At U.S. grocery stores during the last three months of 2010, the total cost of 16 items used to prepare one or more meals was 10% higher than the same period last year, the American Farm Bureau said Wednesday. The price tag was $46.97, on average.
If you settled for a bowl cereal rather than frying up a bacon, egg and cheese sandwich, you have been paying less. A nine-ounce box of toasted oat cereal cost $2.88, down from $2.95 a year ago. But expect that cost to go up. General Mills and Kellogg have both said they are jacking up prices. Look for them soon on a grocery shelf near you.
http://www.marketwatch.com/story/breakfast-lovers-digest-rising-prices-2011-01-05?siteid=rss&rss=1
Eaters stomach rising costs for meats and coffee
SAN FRANCISCO (MarketWatch) — Families that enjoy a big breakfast are paying bigger prices.
Compared to a year ago, a pound of bacon costs 44% more at the retail level, sliced deli ham is up 11% per pound, and a dozen eggs cost 3% more, according to the latest informal data complied by the American Farm Bureau, which surveys U.S. supermarket prices in 29 states.
A caffeine jolt will hit your budget, too. The price to buy a pound of ground roasted coffee costs $4.47, up 22%, or 80 cents per pound from a year ago, according to the Bureau of Labor Statistics.
http://www.marketwatch.com/story/breakfast-lovers-digest-rising-prices-2011-01-05?siteid=rss&rss=1
Rising commodity prices for everything from coffee to sugar are driving up grocery bills. Among the culprits: Rising demand from emerging economies, bad weather hitting crops worldwide and investor speculation.
Meat prices have sizzled following a painful restructuring by U.S. beef and pork producers who sharply cut the size of their herds when the global economy tanked in 2008. This drove up lean hog prices.
“Increasing our nation’s livestock herd to meeting growing demand for meat and dairy products takes time so we are likely to see retail prices continue to increase for some foods throughout 2011,” said American Farm Bureau economist John Anderson.
In 2010, J.M. Smucker /quotes/comstock/13*!sjm/quotes/nls/sjm (SJM 63.25, -0.04, -0.06%) raised the price of its Folgers coffee 13%. Kraft Foods /quotes/comstock/13*!kft/quotes/nls/kft (KFT 31.53, -0.07, -0.22%) raised prices on its Maxwell House coffee 12% last month. The price hikes came as coffee futures hit a 13-year high.
Sugar futures jumped 19% last year, while corn surged 52% and soybeans rose 34%. The commodities spike is making major U.S. food companies rethink discounting strategies used last year to lure shoppers.
Most producers are raising prices on certain food items. These companies include General Mills /quotes/comstock/13*!gis/quotes/nls/gis (GIS 36.62, +0.93, +2.61%) , ConAgra Foods /quotes/comstock/13*!cag/quotes/nls/cag (CAG 22.69, +0.05, +0.22%) , Sara Lee /quotes/comstock/13*!sle/quotes/nls/sle (SLE 17.46, +0.05, +0.29%) and Kellogg /quotes/comstock/13*!k/quotes/nls/k (K 51.07, -0.22, -0.43%) .
The increasing price for food and cooking oils are being felt around the world. Lower-income earners in India are bemoaning the rising cost of onions, while cooking oil costs are going up in China.
World food prices in December hit a record high, surpassing the June 2008 peak, according to an index of 55 food commodities compiled by the United Nation’s Food and Agricultural Organization.
The December 2010 index reading hit 214.7 points, topping the previous all-time high of 213.5 points in June 2008, the last time agricultural commodities skyrocketed, sparking deadly riots in Haiti and Egypt.
At U.S. grocery stores during the last three months of 2010, the total cost of 16 items used to prepare one or more meals was 10% higher than the same period last year, the American Farm Bureau said Wednesday. The price tag was $46.97, on average.
If you settled for a bowl cereal rather than frying up a bacon, egg and cheese sandwich, you have been paying less. A nine-ounce box of toasted oat cereal cost $2.88, down from $2.95 a year ago. But expect that cost to go up. General Mills and Kellogg have both said they are jacking up prices. Look for them soon on a grocery shelf near you.
http://www.marketwatch.com/story/breakfast-lovers-digest-rising-prices-2011-01-05?siteid=rss&rss=1