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Behind the cornucopia of higher food prices
CNBC ^ | April 19, 2014 | John W. Schoen

Posted on 04/20/2014 9:50:27 AM PDT by 2ndDivisionVet

Alert shoppers are accustomed to watching food prices go up and down. But a string of forces—from droughts to diseases—is raising the cost of a trip to the grocery store at a rapid clip.

And it looks like it will be a while before the price pressure eases.

Some of that pressure is coming from California—the source of roughly half the nation's fruits and vegetables—where a long-running drought is forcing farmers and ranchers to cut production. After the driest year on record, large sections of farmland are expected to lay fallow this year as the Golden State copes with an ongoing water crisis.

That could have "large and lasting effects on fruit, vegetable, dairy and egg prices," according to a recent USDA report, which said the full impact has yet to be felt.

Smaller cattle herds have forced meat prices higher in March—up more than 5 percent from a year ago, as demand remained strong despite tightener supplies. Ranchers are getting higher prices for cattle and food companies are able to pass them along....

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: agriculture; economy; food; inflation; necessarilyskyrocket

1 posted on 04/20/2014 9:50:27 AM PDT by 2ndDivisionVet
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To: 2ndDivisionVet
Alert shoppers are accustomed to watching food prices go up and down. But a string of forces—from droughts to diseases—is raising the cost of a trip to the grocery store at a rapid clip.

Don't forget the Federal Reserve running the presses at Ludicrous Speed and then fibbing about the inflation rate.

2 posted on 04/20/2014 9:53:06 AM PDT by KarlInOhio (Republican amnesty supporters don't care whether their own homes are called mansions or haciendas.)
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To: 2ndDivisionVet

Ignore the fact that food, gasoline, healthcare, utilities, taxes, and most of life’s other essentials are rising in price rapidly. We can take comfort in knowing that the government reports very little inflation.


3 posted on 04/20/2014 9:56:00 AM PDT by Proud2BeRight
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To: KarlInOhio

Also, they are also using corn for fuel not food and feed.


4 posted on 04/20/2014 9:57:31 AM PDT by Dutch Boy
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To: 2ndDivisionVet

Simple solution to the obesity “problem”. If you can’t buy the food, you can’t eat, you might lose some weight. Good goin’ there moochie. We’re spending a heck of a lot more and getting a heck of a lot less. Lucky for us we’ve turned the corner. On another front, regular gas is up to between $3.87 and $3.93/gal for regular in Reno now. Must be the spring/summer blend transition.


5 posted on 04/20/2014 9:58:06 AM PDT by rktman (Ethnicity: Redneck. Race: Daytona 500)
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To: 2ndDivisionVet

If the government were less concerned about tortoises and various desert plants and more concerned about letting farmers in California irrigate their fields prices might not be so high.


6 posted on 04/20/2014 9:59:10 AM PDT by jmacusa
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To: 2ndDivisionVet

Article doesn’t mention the recent EPA order to reduce cattle methane emission by 25%. It would seem the only way to accomplish this mandate would be to reduce the cattle population by 25%. From a progressive’s perspective how could that possibly affect the price of beef? No doubt Bush and the evil food processing companies will be blamed for soaring beef prices.


7 posted on 04/20/2014 10:03:37 AM PDT by Soul of the South (Yesterday is gone. Today will be what we make of it.)
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To: 2ndDivisionVet

I have not seen prices come down in many years. Everything is more expensive in the grocery store and many packages contain less product for higher prices. The prices of fresh vegetables at the grocery store floor me. We have a very large garden and using grocery store prices one of our garden rows produce hundreds of dollars of peppers or tomatoes.

California and the West in general need to take some lessons from Israel who have created a vibrant agricultural industry with far less water than the U.S. Israel also manages to do this without illegal immigration.

As the government continues to borrow money, print money, and impose stricter environmental regulation/taxes on the agricultural industry (and diesel prices) the price of food will continue to rise.


8 posted on 04/20/2014 10:08:01 AM PDT by volunbeer
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To: 2ndDivisionVet
When certain foods reach a certain price, I simply quit buying them, where possible, and find work-around products.

At my favorite grocery, for example, avocados vary from 19¢ up. When they go over 49¢, I quit buying them. Some other groceries have them as high as $1.79 each.

Similar with cantaloupes, which vary from week to week and store to store. One week they are 99¢ each. The next week they were $1.99. Another store had them at $2.50.

Also, even ‘fresh’ products are imported. Pears-USA, Roma Tomatoes-Mexico, Cantelopes-Costa Rica, Guatemala, Honduras.

We used to see ‘seasonal’ produce. Just a decade ago, I would never see cantaloupes or watermelons later than September. Now, the stores stock them even in winter.

9 posted on 04/20/2014 10:11:21 AM PDT by TomGuy
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To: KarlInOhio

Did anything bad, and I mean ANYTHING, ever happen that wasn’t blamed on GWB? How can anyone not see how they’re being manipulated by the MSM?


10 posted on 04/20/2014 10:14:03 AM PDT by Spok ("What're you going to believe-me or your own eyes?" -Marx (Groucho))
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To: volunbeer
many packages contain less product for higher prices

I have joked that stores had to get new shopping carts, because on the old ones, the slats were too far apart. Due to product shrinkage, items kept falling through the old carts onto the floor.

--

I DETEST product shrinkage. Just raise the price and leave the size alone!!!!
11 posted on 04/20/2014 10:14:52 AM PDT by TomGuy
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To: 2ndDivisionVet

In my view, almost all price increases are now caused by insane liberal government policies, taxes and regulations.

Every action taken by the Obama administration decreases efficiency, productivity and actual production while raising costs.

And I believe it is all done with purposeful intent to reduce consumption, reduce our standard of living, reduce our independence and increase reliance on the government.


12 posted on 04/20/2014 10:15:40 AM PDT by Iron Munro (NSA reports Malaysia Flight 370 black box signals detected in Bermuda Triangle)
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To: TomGuy

Do you have an Aldi’s nearby?


13 posted on 04/20/2014 10:18:00 AM PDT by 2ndDivisionVet (I will raise $2M for Cruz and/or Palin's next run, what will you do?)
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To: rktman
On another front, regular gas is up to between $3.87 and $3.93/gal for regular in Reno now.

That's a discount price in San Diego... Whoops, I mispoke. Can't get for $3.87 in San Diego.

14 posted on 04/20/2014 10:18:17 AM PDT by luvbach1 (We are finished)
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To: rktman

I think universal food insurance is inevitable. Universal gas insurance? Not so likely.


15 posted on 04/20/2014 10:18:57 AM PDT by 9YearLurker
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To: rktman

I was in Ventura last week and it was well over $5 gallon. Ludicrous.


16 posted on 04/20/2014 10:21:24 AM PDT by sheana
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To: 2ndDivisionVet

I live in metro Seattle.

Food prices have gone up a lot, but sale prices are still pretty good.

I live within walking distance of two major grocery stores, so I can shop every day, and stock up, which really helps the budget.

I have noticed that sale prices are less and less frequent, and the sales last less time.

Unfortunately, two of my favorite items, Nature Valley granola bars and canned peas, almost never go on sale anymore, so I’ve had to stop buying them.

A couple years ago, canned peas almost doubled in price, and they have never come back down.


17 posted on 04/20/2014 10:23:32 AM PDT by zeestephen
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To: rktman


18 posted on 04/20/2014 10:25:36 AM PDT by 2ndDivisionVet (I will raise $2M for Cruz and/or Palin's next run, what will you do?)
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To: TomGuy
We used to see ‘seasonal’ produce. Just a decade ago, I would never see cantaloupes or watermelons later than September. Now, the stores stock them even in winter.

They are getting much better at storage. I read a story about apples which they store in sealed warehouses just above freezing and with a very low oxygen content to keep them fresh for a long time. This results is relatively stable prices throughout the year (generally $1.79-$1.99 for my favorite Granny Smiths) rather than selling them cheap right at harvest and then much more expensive the rest of the year.

Which reminds me, I didn't see any huge sales on citrus this winter like usual. Was there a bad harvest or are they doing the same thing with oranges.

19 posted on 04/20/2014 10:26:01 AM PDT by KarlInOhio (Republican amnesty supporters don't care whether their own homes are called mansions or haciendas.)
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To: sheana; rktman

20 posted on 04/20/2014 10:28:59 AM PDT by 2ndDivisionVet (I will raise $2M for Cruz and/or Palin's next run, what will you do?)
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To: 2ndDivisionVet
How come no one in the media is mentioning the BLM are driving ranchers out of business, at a time when there's a beef shortage?

Oh, yeah, they're cheerleaders for those who profit from the shady land deals.

21 posted on 04/20/2014 10:29:06 AM PDT by grania
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To: 2ndDivisionVet

Tell you how high prices are getting: Dad offered to build me another garden bed!


22 posted on 04/20/2014 10:31:21 AM PDT by Ellendra ("Laws were most numerous when the Commonwealth was most corrupt." -Tacitus)
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To: TomGuy
I DETEST product shrinkage. Just raise the price and leave the size alone!!!!

Me too. I take it as an insult to my intelligence. Thank goodness for unit pricing. I rarely look at the actual price. The unit price is what counts since it includes product shrinkage.

Outrageous price increase at the local Wally: Sargento cubed cheese, 1 pound: used-to-be price, $8.78 (which was already high); price now: $9.68. I'm switching to shredded cheese. Not as easy to use, but much less in price.

Doubt it will do any good, but I sent an email of complaint to Sargento.

23 posted on 04/20/2014 10:32:44 AM PDT by upchuck (Support ABLE, the Anybody But Lindsey Effort. Yes, we are the ABLE!!)
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To: KarlInOhio

Also don’t forget the millions on food stamps that get free food that drives up more demand and thus higher prices. Just like healthcare, government meddling drove those prices through the roof also when people started getting it for “free.”


24 posted on 04/20/2014 10:34:59 AM PDT by lone star annie
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To: upchuck

Here is an unsolicited consumer tip to all companies that have websites:

If you have a Contact Us webform on your website, assign someone to reply to ALL postings received from it. And have that person report directly to the CEO with a daily or weekly report.

I have found that only a very small percentage of companies actually have someone on staff who replies to complaints that are received through their webform. That lack of response reinforces a consumer’s negative opinion of your company that caused them to write in the first place.


25 posted on 04/20/2014 10:38:50 AM PDT by savedbygrace (But God!)
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To: KarlInOhio
Which reminds me, I didn't see any huge sales on citrus this winter like usual. Was there a bad harvest or are they doing the same thing with oranges.

Frost and ice storms in the southern states might have effected them.
26 posted on 04/20/2014 10:44:31 AM PDT by Ellendra ("Laws were most numerous when the Commonwealth was most corrupt." -Tacitus)
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To: TomGuy
When certain foods reach a certain price, I simply quit buying them, where possible, and find work-around products.

The government relies on this behavior to minimize the effect of inflation, adjusting the CPI for changes in consumption.

27 posted on 04/20/2014 10:45:00 AM PDT by Pearls Before Swine
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To: 2ndDivisionVet

I’ve been thwarting the Grocer for many years; along with thwarting the Tax Man, it’s one of my favorite hobbies!

Here’s a chart showing when fresh fruits & veggies are in season, which means they are usually ‘loss leaders’ in your grocery store:

http://www.fruitsinfo.com/spring-fruits.html#api

http://frugalliving.about.com/od/foodsavings/tp/Cheapest_Produce.htm

I’m sure there’s a chart out there for veggies, too.

We’re raising another steer and two hogs for butchering this season. Laying hens are now a necessity! Our veggie garden continues to grow and we add small fruits and fruit trees by the dozens each season.

A few good garden books for producing a lot of food in smaller spaces:

“Grow More Food on Less Land...” John Jeavons

“Square Foot Gardening” by Mel Bartholomew

And...any books by Rosalind Creasy (Edible Landscaping), Barbara Damrosh and Elliot Coleman.

And don’t forget to plant some flowers for your SOUL. Even if Mother Government wants to harm us, life doesn’t need to be ALL misery all the time! :)


28 posted on 04/20/2014 10:54:18 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: 2ndDivisionVet

About half a gallon once the lyin’ king ensures that particular form of energy necessarily skyrockets. To near european levels. Uh, this ain’t europe.


29 posted on 04/20/2014 11:20:07 AM PDT by rktman (Ethnicity: Redneck. Race: Daytona 500)
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To: zeestephen

One of our near-by stores in the Houston suburbs always used to have pages and pages of food coupons for edible items which you could clip and use if you have a “special card”. Noticed recently that there are almost as many pages but most of the items on sale are personal care products and non-edible items like washing powder.

I don’t shop every day but do stop in a couple of times mid-week and just buy those items that are on sale. Found Folger’s coffee this last week at $5.99 instead of $9.99 but it was just for one day only and since I have not seen it this low before did stock up. Store doesn’t seem to advertise the really good sales.


30 posted on 04/20/2014 11:22:44 AM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: rktman

Europe is chock full of streetcars, buses, passenger trains, ferries, trams and other relatively inexpensive means of transportation and distances are nowhere near as far apart in most cases. We don’t have all that. We rely on automobiles.


31 posted on 04/20/2014 11:25:30 AM PDT by 2ndDivisionVet (I will raise $2M for Cruz and/or Palin's next run, what will you do?)
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To: 2ndDivisionVet

Roger that. I lived in London for a couple of years in the early 60’s. You could get just about everywhere but like you said, distances aren’t that great. Part of the plan to further subjugate some of us.


32 posted on 04/20/2014 11:32:51 AM PDT by rktman (Ethnicity: Redneck. Race: Daytona 500)
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To: zeestephen

What I have noticed in our local stores is that the “sale” items often are not sale-priced,but are marked in the ads as “every day low prices” That’s a joke. Some items don’t change much,but I’m sure these are the things that will keep under long-term storage. The mess with the irrigation in California seems to me to be a problem easily solved....if someone would do it. The people that are the cause of that need to be prosecuted,IMHO.


33 posted on 04/20/2014 11:41:29 AM PDT by oldtech
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To: grania

The government and environmentalists have been driving farmers and ranchers out of business for decades...they got serious when Clinton was elected. It has been a war on those that produce our food, so it is no surprise that we now have shortages and high prices. Many seem to think we don’t need ranchers, farmers, dairies, fishermen...many seem to think their food comes from Walmart...


34 posted on 04/20/2014 11:46:45 AM PDT by Tammy8
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To: 2ndDivisionVet
Some of that pressure is coming from California—the source of roughly half the nation's fruits and vegetables—where a long-running drought is forcing farmers and ranchers to cut production. After the driest year on record, large sections of farmland are expected to lay fallow this year as the Golden State copes with an ongoing water crisis.

All that and not a word about how much of the Central Valley's water shortage was caused by the Feds to try (and fail) to protect the Delta Smelt.

35 posted on 04/20/2014 12:11:59 PM PDT by Cyber Liberty (H.L. Mencken: "The urge to save humanity is almost always a false front for the urge to rule.")
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To: 2ndDivisionVet

Aldi’s is about 4 miles from me. I usually do my weekly shopping there 2-3 times per month.


36 posted on 04/20/2014 12:23:54 PM PDT by TomGuy
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To: 2ndDivisionVet

Investors have been running to commodities for some time. So yes, prices of necessities have been going up.


37 posted on 04/20/2014 3:12:34 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: 2ndDivisionVet

U.S. Seasonal Drought Outlook
http://www.cpc.ncep.noaa.gov/products/expert_assessment/sdo_summary.html


38 posted on 04/20/2014 3:15:59 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: savedbygrace

Excellent advice!


39 posted on 04/20/2014 3:16:59 PM PDT by upchuck (Support ABLE, the Anybody But Lindsey Effort. Yes, we are the ABLE!!)
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To: jmacusa
tortoises and desert plants are just the conveniant reason to claim power over the land...

that is the whole reason behind the EPA...picking winners and losers according to the party elite.....

40 posted on 04/21/2014 6:38:59 PM PDT by cherry
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To: zeestephen
seems the worst part of your story is that you like canned peas....lol

anyway, you are right in shopping every single day....every single day there is usually at least one thing on a sale....buy and stock up is the way to do it....

41 posted on 04/21/2014 6:41:55 PM PDT by cherry
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To: 2ndDivisionVet

The car is the ultimate symbol of individual freedom in America.


42 posted on 04/22/2014 3:20:06 AM PDT by jmacusa
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