Shoppers Face Fresh Price Hikes As Stores And Suppliers Pass On Costs
Image Source: Reuters/Paul Childs
By the end of 2022, the US food index had risen 10.4%. Analysts predict food prices will continue to rise for at least the first half of 2023. According to research firm Kantar, British consumers have already paid a record 16.7% more for food in the first month of 2023 compared to the same time last year. The CEO of Nestle, which owns more than 2,000 food brands from Cheerios to Häagen-Dazs, said the company would have to raise prices again in 2023 to offset increasing production costs. Food giant Unilever is also expected to raise prices. Tighten your belts. Inflation isn't over yet.
US Egg Prices Rise 60% In A Year
Image Source: AP Photo/Erin Hooley
As demand for eggs has risen, US production has slumped. According to the USDA, nearly 58 million birds have been slaughtered due to the ongoing bird or "avian" flu epidemic, making it the deadliest outbreak in US history. You know the laws of supply and demand: the result is that US egg prices have more than doubled, increasing 60% from last year. Across US cities, the average price of a dozen eggs was $4.25 in December, putting pressure on professional and home cooks, especially during holiday baking season.
Feeding America Overtakes United Way As Largest US Charity
Image Source: Courtesy of Feeding America
The pandemic era has been defined by food supply chain disruptions, upending everything from farms and slaughterhouses to supermarkets and restaurants. As a result, Feeding America, a food bank network, has claimed the #1 spot on Forbes’ 2022 list of America's Top 100 Charities. United Way, another charity network, held the #1 spot off and on for decades, but the pandemic's acute effects on the food world have refocused charitable giving on providing food for the hungry. I don't know about you, but this little factoid gives me hope.
US Blocks Domino Sugar Imports, Citing Forced Labor
Image Source: Erika Santelices/Agence France-Presse/Getty Images
Central Romana Corp is the largest landholder and employer in the Dominican Republic, exporting more than 200 million pounds of sugar annually to the US, widely sold under the Domino brand. For decades, Central Romana has been under scrutiny for abusive working and living conditions, withheld wages, excessive overtime, child labor, and other forced labor violations. To incentivize the company to clean up its act, US Customs and Border Protection has now blocked Central Romana sugar shipments, a move sure to drive up sugar prices. Expect holiday baking to become a bit more expensive this season.
More Supply Chain News
Wilt Virus Causes Temporary Lettuce Shortage Across US
Ukraine Grain Deal Gets Extended, Allowing Global Exports As War Continues
Major Food Brands To Miss Plastic Sustainability Targets
Drought Reduces Truffle Supply, Driving Up Prices
US Produce Imports Increase, Despite Domestic Availability
Top US Grocers, Kroger And Albertsons, Pursue $24.6 Billion Merger
The two largest US grocers have agreed to create a corporate behemoth that would reshape the supermarket landscape. The two chains operate nearly 5,000 stores with revenue of more than $209 billion. Kroger claims the acquisition will reduce food prices for consumers, but lawmakers remain skeptical, especially as inflation continues. Three US attorneys general filed a federal lawsuit and prominent politicians have sent opposition letters to the Federal Trade Commission to block the deal. If the FTC and Justice Department approve the merger and it survives court challenges, the deal would close in early 2024. The key questions: Will this acquisition benefit consumers? Does it violate antitrust laws? We shall see in the coming months.
