Thursday, November 4, 2010

Food producers announce price increases

"...Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald's Corp., Kellogg Co. and Kroger Co. have begun to signal that they'll try to make consumers shoulder more of the higher costs for ingredients.

For food executives, how quickly to pass along higher costs presents difficult choices. Missteps could be costly when the economy...."


Per the Wall Street Journal


There is a window to stock up now on staples before these preplanned price increases take effect, unless of course one believes the money can be invested elsewhere for a higher return than the price increases will be, right now it appears to be anywhere from 3% for companies and 4 dollars on 1 pd of premium beef.

Thank you helicopter Ben, now armed with information, I'd expect a buy of staples as not even pasta and rice will escape this round of price inflation and Coffee seen as a daily staple inside the US will certainly see even more of a price increase as the dollar's decline will make importing Coffee even more expensive as well as piggy back price increase by coffee producers that they will blame on the declining dollar.