I went to the supermarket on yesterday to pick up some milk, strawberry cream cheese (my daughter’s current favorite) and orange juice. I left with more than $100 in groceries. Among the culprits that jacked up my prices. Yogurt – now more than $1 per serving (about 60 cents earlier in the year). Cereal – almost $5 per box for a small box of Special K, no less. Pancetta – nearly $10.
There’s no doubt that prices for food are increasing. But who’s getting the profits?
Argentine farmers say that it’s not them. They are striking over an increase in taxes on major export goods – in some cases as much as 45% – which they say will eat more into shrinking revenues. The government’s response is that the increases are necessary.
The strikes have already hit domestic shops in Argentina – and exports are now being affected, with some companies saying they cannot fulfil their contracts. In response, the government has said it will “use force if necessary” to get food to the markets. The strike, in its third week, has already resulted in several major scuffles and arrests. Many more are expected before the strike ends.
What kind of goods are we talking? Argentina is a leading exporter of beef, corn, soy oil and soybeans. As prices have risen across the world, Argentine farmers have seen increased demand for these products. However, they argue that any increase in revenue will be offset by disproportionate increases in taxation.
What will this mean for foreign markets, as in the US? I’m not sure. But my money is on increased beef prices and more folks than ever eating chicken…
Food prices are as arbitrary (or so it seems) these days as dress sizes in the ladies department. The increased “regular” prices seem to be matched by huge discounts every other week. And yet we rarely stop to think about how or why the prices are what they are.
Chik-fil-A will be happy with your prediction.