Prices of Food stuffs

LegacyUser

Iv been hearing alot lately about the worldwide shortage of grains and that the price trends in the areas using grains is gonna rocket by up to 15%.

from what Iv heard some of the largest wheat exporting countries in the world..i.e Ukraine, has actually blocked all exports of wheat to try and preserve its own National requirement. The US and Canada is suffering from shortages of Barley and wheat,and France,Germany and Britian have had such rubbish weather during the growing season that they are gonna struggle with thier own requirements.But compounding the problem is farmers new love of bio-energy crops...farmers just cant be bothered anymore in working thier fingers to the bone to supply the major multipiles that refuse to compinsate adeqetly.

I even read that one of Japans largest manufactures of Noodles,Nissin Noodles is gonna have to put in price increases of 7-12% cause of world grain prices.

The meat farmers have already warned the major multiples that they are gonna have to give a price increase for meat or else run the risk of going out of business...the same for bakery items.

I just got back from a holiday in Portugal and couldnt believe that the price of a 600grm sliced pan was nearly €4...this reflects the costs facing bakeries in the region.

Im just curious though...is there enough information being supplied to the average shopper( post abolition of the groceries order) thats giving them a heads up on this price shock thats only a matter of time before it lands??

europerson

kaiser1 wrote:

compounding the problem is farmers new love of bio-energy crops...farmers just cant be bothered anymore in working thier fingers to the bone to supply the major multipiles that refuse to compinsate adeqetly.

Yep, that's the market for you. In the supermarkets' struggle to have low prices, there just isn't the return for farmers in traditional food markets, so they have had to diversify and to seek out new markets.

The meat farmers have already warned the major multiples that they are gonna have to give a price increase for meat or else run the risk of going out of business...the same for bakery items.

I think that point's a bit over-exaggerated. Unless people dramatically change their eating habits all around the world at the same time, there will still be a demand for traditional food products. At current levels, farmers going out of business is nothing but a natural rationalisation in the industry.

Im just curious though...is there enough information being supplied to the average shopper( post abolition of the groceries order) thats giving them a heads up on this price shock thats only a matter of time before it lands??

Well, this topic has been extensively discussed in the media of late, so I'd say most well-informed consumers will see it coming. The problem lies with the consumers, who have little understanding of where food actually comes from, how it is produced and how the weather affects the food they (can) eat, and they will be shocked when the see the increases in basic items like bread and meat. For example, yesterday I was in my local greengrocer's store, and a customer moaned to the shop-keeper about the "bad summer it was". The same customer then proceeded to ask the shop-keeper why potatoes were so much more expensive than last year. :rolleyes:

LegacyUser

europerson wrote:

. At current levels, farmers going out of business is nothing but a natural rationalisation in the industry.QUOTE]

But maybe such rationalisations are not a positive influence on the economy.
Take the flour mills for instance...theres only one in Ireland,and thats Odlums.
They therefore control the price of flour used in Ireland...theres no competition that IMHO helps realise cost savings.

I also forgot to mention the dairy sector aswell...I think I heard a spokesman for Glanbia say dairy products and by0products have risen by 50% in the last year.In mainland Europe..wholesale butter changes price hourly..its pretty manic if that really is the case.

europerson

kaiser1 wrote:

But maybe such rationalisations are not a positive influence on the economy.
Take the flour mills for instance...theres only one in Ireland,and thats Odlums.
They therefore control the price of flour used in Ireland...theres no competition that IMHO helps realise cost savings.

You have to remember that, at a commodity level, we operate in a European rather than Irish market. Odlum's can't control the price of flour in Ireland, because flour is something that is very easy to import from other European countries, and you need to take that into account.

In mainland Europe..wholesale butter changes price hourly..its pretty manic if that really is the case.

Shares change price every second! In a market, prices are always shifting: butter isn't any different.

silverharp

Another factor is corn in the US being used in biodiesel backed up by gov. subsidies. I believe there were near riots in Mexico when the price of corn started to sky rocket. Do ou want to drive or do you want to eat???

Ekancone

Im studying single-honours economics, but with a class in history. I have noticed throughout history that many major events in history are usually coupled when food prices go through any radical change, especially when speculators influence price further. I have a feeling that the speculation in bio-fuels, and the knock-on effects of this on other food markets, may lead to a repeat of social unrest in the future. Any thoughts?

But then again im only a 3rd year, what do i know?