Us food prices are up 19% in 2014

[mick silver]

http://www.blacklistednews.com/The_Real_Inflation_Fear_%E2%80%93_US_Food_Prices_A re_Up_19%25_In_2014/34028/0/0/0/Y/M.html ... We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven)of US Foodstuffs is the best performing asset in 2014 – up a staggering 19%…http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/03/20140326_food_0.png

[singular_me]

food waste and montary system are the main culprits, it is creating a vicious circle with no end in sight... inflate or die




http://empathyascurrency.blogspot.com/2014/01/smoking-gun-global-food-waste-debunks.html

Produce and die anyway! While many, who do not grasp the ill-effects linked to our food chain, might think that it would be easier to sue corporations all together to resolve the outrageous conundrum, it doesn't work that way as multinationals operate for profits. Food retailers have the habit to shift their losses on to the consumers, all of which in the form of inflation. Additionally, retailers also contribute to waste as a result of their contractual arrangements with suppliers. Failure to supply agreed quantities renders farmers or processors liable to have their contracts canceled. As a consequence, they plan to produce more than actually required to meet the contract, to have a margin of error. Surplus production is often simply disposed. Under such coercive business attitudes, it is easy to figure out why farmers and retailers too cause food spikes. They too have commitments to meet. Sure, there are other deceiving and irrational factors behind price hikes -such as unnecessary strict sell-by dates, buy-one-get-one free and the demand for cosmetically perfect food - but if supermarkets throw out food or donate it to food banks, at the end of the day, it really wouldn't make any difference: they must keep Wall Street Shareholders happy. Reporting honestly such staggering losses would cause a global stock market crash overnight. The fear factor helps evil prosper. Lawmakers as well as the consumers want to keep their jobs. So, until this unsustainable framework collapases under its own weight, lies and food inflation are here to stay, it is just too bad for consumers. Those who don't have a garden or access to a local farm will be the first to starve when 'reality' sets in. But don't you worry, meanwhile Queen Elizabeth and Obama have their own gardens since 2009.

[mick silver]

Food prices soar as incomes stand still ...http://www.cbsnews.com/news/food-prices-soar-as-incomes-stand-still/

[mick silver]

Food and Gas Drove Wholesale Prices Up in May

http://graphics8.nytimes.com/images/2013/06/15/business/subEcon/subEcon-articleLarge.jpgDavid Banks/European Pressphoto Agency
The cost of eggs rose 41.6 percent in May as demand soared around the globe, helping food costs to increase 0.6 percent.

By THE ASSOCIATED PRESS

Published: June 14, 2013

WASHINGTON — Economic reports released on Friday weighed on investors, showing that consumer confidence has fallen this month and that American factories barely increased their output in May.

http://graphics8.nytimes.com/images/2013/06/15/business/20130615_PPI_graphic/20130615_PPI_graphic-articleInline.gif
The New York Times


http://graphics8.nytimes.com/images/2013/06/15/business/20130615_INDUSTRIALPROANDCAPACITY_graphic/20130615_INDUSTRIALPROANDCAPACITY_graphic-articleInline.gif
The New York Times



In addition, the Labor Department reported that a rise in food and gas costs drove a measure of wholesale prices up sharply in May. But outside those volatile categories, inflation was mild.
The department also said on Friday that the producer price index (http://topics.nytimes.com/top/reference/timestopics/subjects/p/producer_price_index/index.html?inline=nyt-classifier) rose 0.5 percent in May from April. Gas prices rose 1.5 percent last month, and food costs increased 0.6 percent.
Confidence in the economy has fallen in June to a lower level than economists estimated, according to the Thomson Reuters/University of Michigan survey.
Scott King, senior fiduciary investment adviser at Unified Trust in Lexington, Ky., said that investors were disappointed on Friday by the decline in consumer confidence. He described the economy as “plodding along.”
“Wage growth continues to be pretty meager, and unemployment continues to be lackluster,” Mr. King said.
The Federal Reserve (http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal_reserve_system/index.html?inline=nyt-org) said on Friday that factory production rose just 0.1 percent in May from April, a sign that manufacturing was providing little support for the economy. Output fell 0.4 percent in April and 0.3 percent in March.
Factories produced more autos, computers and wood products last month, offsetting declines in the production of furniture and primary metals.
Manufacturing output has risen 1.7 percent in the last 12 months.
“Manufacturers are still struggling to cope with the ongoing weakness of global demand,” said Paul Dales, senior U.S. economist at Capital Economics.
In wholesale prices, the increase last month came after a 0.7 percent decline in April and a 0.6 percent drop in March, both of which were driven by steep declines in gas prices.
Core prices, which exclude food and energy, rose 0.1 percent in May. That matches the April increase. The index measures price changes before they reach the consumer.
“There really is not much inflationary pressure in the economy,” Mr. Dales said in a note to clients.
Aside from sharp swings in gas prices, consumer and wholesale inflation has increased very slowly in the last year. Both the overall and core indexes have risen just 1.7 percent in the 12 months ending in May. That is less than the Federal Reserve’s 2 percent inflation target, allowing the Fed more latitude to pursue its aggressive policies to spur greater economic growth.
The combination of modest economic growth and high unemployment has kept wages from rising quickly, making it harder for retailers and other businesses to raise prices.
Most of the May increase in food costs stemmed from a 41.6 percent rise in the cost of eggs, the biggest on record. The increase reflected soaring demand in the United States and overseas. The Memorial Day and Mother’s Day holidays, popular occasions for brunch, spurred more demand in the United States, a department spokesman said.

[mick silver]

California drought to drive up food prices in the long term ... http://www.mercurynews.com/business/ci_25322583/farm-fork-california-drought-drive-up-food-prices