Influx Insights Tag Feed: agflation
http://www.influxinsights.com/blog/
2008-12-03T21:32:43Zthe end of cheap food
http://www.influxinsights.com/blog/article/1553/the-end-of-cheap-food.html
Food prices are on the rise everywhere. Causes include- climate change, increasing demand from China and India and the knock on effects from increased ethanol production.
<br><br>Here's are some clips on the topic..<br><br style="font-weight: bold;"><span style="font-weight: bold;">Channel 4 news in the UK</span><br><br><object width="425" height="350"><param name="movie" value="http://www.youtube.com/v/vr4TnTIIBL4"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/vr4TnTIIBL4" type="application/x-shockwave-flash" wmode="transparent" width="425" height="350"></embed></object><br><br><span style="font-weight: bold;">Reuters on German price increases</span><br style="font-weight: bold;"><br><object width="425" height="350"><param name="movie" value="http://www.youtube.com/v/I8aYmt-r68Y"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/I8aYmt-r68Y" type="application/x-shockwave-flash" wmode="transparent" width="425" height="350"></embed></object><br><br>
It also doesn't look like prices are predicted to decline any time soon, here's a forecast from the FAO for dairy prices. <br><br><a target="_blank" href="http://www.flickr.com/photos/edcotton/1304714993/" title="Photo Sharing"><img src="http://farm2.static.flickr.com/1383/1304714993_6d56539b46_o.jpg" alt="Rising Dairy Prices" height="334" width="515"></a>
<br><a target="_blank" href="http://www.nytimes.com/2007/09/04/business/worldbusiness/04milk.html?ex=1346558400&en=ae8f27ff88f143fe&ei=5090&partner=rssuserland&emc=rss"><br>New York Times on rising global milk prices and weatlhy New Zealand dairy farmers. </a><br><br><br>Posted by Ed CottonInflux Insights2007-09-04T00:24:34Zbrand pricing and agflation
http://www.influxinsights.com/blog/article/1358/brand-pricing-and-agflation.html
It might help the environment, but <b>ethanol</b> is wrecking havoc with food prices. Ethanol production is expected to take <a target="_blank" href="http://money.cnn.com/2007/05/11/news/economy/bc.usda.report.crops.reut/index.htm?postversion=2007051116">27% of the US’s corn crop</a>, taking corn out of the food supply chain and pushing up prices. <br><br>Back in February, Influx <a target="_blank" href="../../../../../article/1193/brands-under-pressure-from-rising-commodity-prices.html">warned readers about this trend. </a><br><br>Hershey recently announced that its <a target="_blank" href="http://www.forbes.com/markets/2007/05/10/hershey-decrease-outlook-markets-equity-cx_cg_0510markets11.html">under financial pressure</a> from rising corn prices. It doesn’t directly use corn in chocolate, but it uses lots of dairy product, for which <a target="_blank" href="http://www.publicbroadcasting.net/wrvo/news.newsmain?action=article&ARTICLE_ID=1077698" target="_blank">costs are rising</a>, because cattle are fed corn. <br><br>Restaurant chain <b>PF Chang's</b> highlighted the impact of rising corn prices on overall food costs, in its recent presentation to investors. <br><br><a target="_blank" href="ef=" http:="" www.flickr.com="" photos="" edcotton="" 499439366="" title="Photo Sharing"><img src="http://farm1.static.flickr.com/201/499439366_d129519f4b.jpg" alt="Corn Price Trends" height="392" width="500"></a><br><img src="%3Ca%20href=" http:="" www.flickr.com="" photos="" edcotton="" 499439374="" title="Photo Sharing"><img src="http://farm1.static.flickr.com/227/499439374_024d40bd50.jpg" alt="Impact of Rising Corn Prices" height="378" width="500"><br><br>This phenomenon has led <b>Merrill Lynch’s </b>Chief Investment Strategist, Richard Bernstein to coin the phrase <a target="_blank" href="http://askmerrill.ml.com/res_article/1,2271,19659,00.html">“agflation”. </a><br><i><br>“Food prices are rising, putting upward pressure on producer and consumer inflation. We call this phenomenon "agflation." Given the expanding constraints on food supply, the changing demand for food and the entrance of the energy business as mass consumers of food products, it is not surprising to see food prices rapidly putting upward pressure on overall inflation<br><br>Agflation is bad news for the consumer, who is already under pressure from higher energy prices. For the food companies, however, it could be good news as many companies have been able to pass along those higher costs to the end user.”</i><br> Influx Insights2007-06-06T19:46:17Z