While almost every grocery store aisle is affected by rising prices, a large part of the reason all comes down to two commodities: wheat and corn. Both of these food staples have gone up in price the past two years in part due to climate change, natural disasters and crop disease. For example, Russia has experienced such severe droughts the past two years that it halted the exportation of wheat altogether to ensure enough of a domestic supply. (They have resumed limited exports as of July 2011 but supplies are still short.) Also, a disease called wheat rust UG99 has wiped out crops across Africa and is spreading to other wheat-producing countries at a rapid pace.
There have been many corn crop failures across North America also, but the real culprit for corn is that it is being used to make ethanol fuel, considered a “sustainable fuel.” Hundreds of thousands of acres that once produced corn for human consumption is now being used to fuel our cars.
At first glance, it may seem like these increases will only mean you’ll be paying more for a few grocery items like bread and popcorn, but wheat and corn are included in the vast majority of foods that you may eat every day. Here are four areas where you will see rising prices:
1. Cereals, Breads and Pasta Products
Most processed cereals are made from corn and these will be hit hard by price increases in the next year. The commodity price of corn has nearly doubled since 2010 and is rising again due to the massive drought Texas is facing. Breads, rolls, cakes and cookies will all rise in price from the steep jump in the price of wheat. According to food manufacturers, the industry has been holding back from increasing retail prices but cannot absorb the costs any longer.
2. Sweets
Most processed “sweets,” from soda to cookies to jam, are made with high fructose corn syrup. The lack of corn supply is causing prices in these areas to steadily rise. Watch out for shrinking packages, as well. Many companies will keep the same price point but drop the amount you get.
3. Beef, Pork and Chicken
Almost all industrialized meats fed on corn, mainly because it was the cheapest feed available. As the price of corn rises, there are still no cheaper alternatives, so the price of meat rises because of the higher input price.
4. Cat and Dog Food
Pet food contains grains in one of two ways: processed dry food often contains corn as one of its primary ingredients and canned food contains meat chunks or wheat-based thickeners. It’s not just the cost of human food that will go up.
Its time to shop smarter and stock up on storable sale items. Also, making more of your own food from raw ingredients is a great idea. This can be a fun idea as well to do with your family. It also cuts down on waste and excess wrappings and containers being discarded.
