Retailers advise people to get used to high food prices!
Some retails have reported an increase in their prices due to covid-caused inflation and supply shortages.
Many countries saw a fall in production of raw materials, ranging from crops to vegetable oils, reports the BBC. Resupplying these products has not kept up with the sudden surge in demand, leading to higher prices. On top of that, higher wages and energy prices have also added to the burden for manufacturers.
In fact, the cost of ingredients such as cereals, vegetable oil and sugar has hit a 10-year high, according to the UN Food and Agriculture Organisation.
Even though the price rise is global, the UK has been facing even more trouble due to lack of truck drivers.
Kraft Heinz chief executive, Miguel Patricio tells the BBC that consumers will need to get used to higher food prices given that the world’s population is rising whilst the amount of land on which to grow food is not.
Trouble Somewhere, Trouble Everywhere
Kona Haque is the head of research at the agricultural commodities firm ED&F Man. “Poor harvests in Brazil, which is one of the world’s biggest agricultural exporters, drought in Russia, reduced planting in the US and stockpiling in China have combined with more expensive fertiliser, energy and shipping costs to push prices up,” she told BBC.
But she added that price rises are unlikely to hurt businesses “because it’s so widespread that everyone will do it, meaning they probably won’t lose customers”.
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