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BA Deere
Honored Advisor

Food inflation

Tyson Foods CEO Donnie King said with "unprecedented" inflation, they will raise prices to restaurants in September.   I also hear Egypt is raising bread prices in a long time.   Some of the crumbs about have to fall down to the farmer.

7 Replies
illinifarmer
Advisor

Re: Food inflation

Tyson has so many recalls, their just trying to make up the difference.  Processed chicken lol, not good.

0 Kudos
k-289
Senior Advisor

Re: Food inflation

Maybe  we  will  have ''  food  inflation ''   in  the  load  out pen ,  also   - although  trimming  a  few  bucks  off  those  $999.oo / head  beef ,  harvest  margins ,  might  be  an   unbearable ,  unaccommodating   task  at  hand  -  -  -

CONsolidation  at  the  chicken  front ,  might  be  pragmatic ,  and  or  problematic  for  those  Senate  Hearings  on  the  interesting  Sanderson  wheeling  dealing  - - -     

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sdholloway56
Senior Advisor

Re: Food inflation

Everybody took the opportunity to expand margins- except the producer, who can't.

In economic theory, competition should drive margins back down.

And if it doesn't?

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sdholloway56
Senior Advisor

Re: Food inflation

The narrow places that are driving CPI inflation- stuff like used cars, car rentals, air fares, hotels are clearly a function of extraordinary circumstances. But nobody will cut their windfall margins until competition forces them to.

Restaurant prices- food costs a bit higher but mostly driven by demand and higher labor costs. Which I refuse to decry.

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sdholloway56
Senior Advisor

Re: Food inflation

I am here to predict that with extraordinary circumstances forcing the average service worker's wage to $15/hr, the world will not come to an end as vehemently predicted by the Usual Suspects.

Or at least not from that.

Operators of dozens of fast food franchises will not throw up their hands, quit and move to Bolivia, leaving us all to starve.

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sdholloway56
Senior Advisor

Re: Food inflation

What the fast food operators et al will do is raise prices more than the labor cost increase costs them.

Then they’ll add a wing to the Palm Beach house and pay a congressman to keep them whole.

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wrightcattle
Veteran Advisor

Re: Food inflation

Quite a bit (most )of retail hamburger is $3 to 4 lb. Granted some is $2 and some is 5.

I don't consider the afore as being to high.  Period. 

Hamburger Is the highest consumption beef product.  Has been for decades. 

 

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