Global food costs up 8 pct December through March

Discussion in 'General Discussion' started by workhorse, Apr 27, 2012.

  1. workhorse

    workhorse Monkey+

    Global food costs up 8 pct December through March
    * Production outlook strong, could check price rise
    * African domestic food prices especiallly high (Recasts, adds details, comment from World Bank official)
    WASHINGTON, April 25 (Reuters) - Global food prices are rising again, pushed higher by costlier oil, strong demand from Asia and bad weather in parts of Europe, South America and the United States, the World Bank said on Wed nesday.
    The latest World Bank food price index showed the cost of food rose 8 percent between December and March. In the previous four months, prices had declined. Even after the latest rise, food prices remain 1 percent below a year ago and 6 percent below the February 2011 historical peak, the World Bank said.
    "After four months of consecutive price declines, food prices are on the rise again, threatening the food security of millions of people," Otaviano Canuto, World Bank vice president for poverty reduction and economic management, said in a statement.
    "The price indices of grains, fats and oils, and other foods all increased in each month since January 2012," the World Bank said.
    The international rice price declined, however, due to abundant supplies of the grain and strong competition among exporters, the poverty-fighting institution said.
    If current food production forecast for 2012/2013 do not materialize, global food prices could reach higher levels and required close monitoring, the World Bank cautioned.
    Developing economies were hit by a food and energy price crisis in 2008/09, sparking social unrest and food export bans in some countries. Further price increases in 2010 and early 2011 led to increased production of major crops, the bank added.
    It said production outlooks remain "strong" with price pressures influenced by a decline in the use of maize for ethanol production in the United States and weaker global demand due to the euro zone debt crisis.
    Domestic food prices remain high especially in Africa due to a combination of large food imports and factors such as regional trade restrictions, hoarding, civil unrest and bad weather. rest of article at UPDATE 1-Global food prices on the rise again-World Bank | Reuters
  2. tacmotusn

    tacmotusn RIP 1/13/21

    Food prices have been on an extended increase for some time. Even more so since jan 2009. Worse yet, it is not a factor in COLA (cost of living adjustment), which is used to compute any possible raise in payouts for military retirees, active military pay, social security, and many other systems. Tell me that is not an unfair tax on the poor.
    jungatheart likes this.
  3. jungatheart

    jungatheart Beginner's Mind

    Let them eat cake.
  4. tacmotusn

    tacmotusn RIP 1/13/21

    After you quoted me and made the above statement, I am unsure if that is a possitive or negative comment. I would hope it was a negative comment aimed at Obama and his advisors.
    Another point I failed to mention was that Congressional pay raises continued unabated during these same time periods. So yes like the French Monarchy of yore, as the poor were being forced to forego essentials the elite were living high on the hog and saying "let them eat cake".
  5. jungatheart

    jungatheart Beginner's Mind

    Sorry I was too vague. It was indeed a reference to Marie Antoinette who was told the peasants were revolting because they had no food. Her response was "let them eat cake". Hopefully the analogy holds since she was beheaded.

    I happen to be living on social security and Vets pension so rising food prices directly affect me.
    gunbunny and oldawg like this.
  6. tacmotusn

    tacmotusn RIP 1/13/21

    No need to apologize, some times very obvious things to most go right over my slick bald head.
    jungatheart likes this.
  7. TheEconomist

    TheEconomist Creighton Bluejay

    Thanks goodness the US is one of the largest food producers in the world Mr. Jung. US food prices are only up .6% since December 2011. However, year over year we are up 3.3% unadjusted. which means food has a 74.6% positive price increase relative to change as per that of our per capital income. PCI has had a 1.9% growth over the past year. This simply means that adjusted according the prices in food and income changes food is really only costing us, in the USA at least, about 1.0444% more.

    All statistics used in my calcualtions can be found via the U.S. Bureau of Labor Statistics.

    I hope this helps make you feel a little better everyone!
  8. ghrit

    ghrit Bad company Administrator Founding Member

    It does not. My grocery bill is up about 10% over the last four years, and that does not account for the reduced amounts needed to re-establish long term storage that I was spending after the move back then. (I've hit my storage level for now.)
    jungatheart likes this.
  9. tacmotusn

    tacmotusn RIP 1/13/21

    I am not buying the government statistics. Here are some real world statistics.
    One-Year Emergency Food Supply by Robert Wayne Atkins, P.E. - Grandpappy
    I have routinely purchased price loss leaders at groceriy stores for years. I have found sirloin steak to have doubled in price over the last 5 to 10 years($1.99 was common, now $3.99 is as a sale price). Milk by the gallon, almost never on sale in grocery stores, used to be $2 to somewhere close to $3. Now $3.50 to $4.00 plus. I really could go on and on but why bother. Nobody here is buying 1.0444 % as an increase.
    In case y'all don't want to look at grandpappys figures. They are jan 08 - jan 09 (15.3% increase), jan 09 - jan 10 (6.1% increase), jan 10 - jan 11 (1.4% decrease), jan 11 - jan 12 (9.3% increase).
    Net increase 29.3% over 4 years
    Just for the record, my USN net monthly retirement pay only went up a total of $12 in those 4 years
    an increase of less than 0.8%
    oldawg likes this.
  10. TheEconomist

    TheEconomist Creighton Bluejay

    Sorry if what I presented isn't palatable but it’s from the BLS. If youdon't trust their numbers I can understand that. What I calculated was theamount food should change your disposable income by if you are having averageearnings increases as well as average food price increases from march 11 tomarch 12. That is all.

    If you are on a fixed income yes you are going to be hit much harder.

    I am just providing the information I can from a source most people wouldsee as credible.
  11. ghrit

    ghrit Bad company Administrator Founding Member

    TE, I love you like a brother, but really! A government source credible? Yikes!!!
    mysterymet likes this.
  12. fedorthedog

    fedorthedog Monkey+++

    I find the milk reference funny. Dairy farmers are paid by the hundred weight and have not seen an increase in rate in a number of years. Last I checked it was 11 dollars a hundred weight for A permit milk. The cost that has gone up goes mainly to the processor and transport.
  13. gunbunny

    gunbunny Never Trust A Bunny

    Yup, lots of dairy farms around these parts, at least there used to be. The farmers themselves are not getting any of the increases and are being driven out of business.

    Strict price controls by the state have quite a bit to do with it, too. One of the people working at the local store got into big trouble when they placed a discount on milk with a store card. The manager had a fit, and rightly so, because they would have been liable for it to the state. Think we are ready for communism? It's already here...
  14. ditch witch

    ditch witch I do stupid crap, so you don't have to

    There's a non profit that does lunch service for seniors and shut ins where I work, and I buy a lot of bulk stuff through them. Gets us both a little better pricing when the order is larger. Anyway, they told me that their food costs have risen just over 30% from Jan 1, 2011 to Jan 1, 2012. They're running on a razor budget now and are afraid they'll have to shut down pretty soon because it just keeps going up and up.
    jungatheart likes this.
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