Expect at least a 10-12 percent rise on your groceries bills in 2009!
Poultry, hog and cattle producers are thought to cut production in 2009 because of the rising feed costs. Less meat on the retail market would dictate higher prices.
Further loss of topsoil and erosion of crop acreage, weather-related production factors, higher global demands for food, rising commodity prices, production of biofuel and inflation will cause additional price rises in 2009.
Food inflation in 2007 rose to 4%, up from 2.4% in 2006, the highest annual increase since 1990. In 2008 the rise will have surpassed the 9% mark.
In 2006, world nations spent on average about 10% of their income on food, according to the U.S. Department of Agriculture. U.S. consumers spent the lowest proportion of about 5.8%.
MSRB projections show that the US shoppers proportion of income spent on food could rise to 7.6% (possibly to as much as 8.5%) in 2009.
- Food Crisis (Index Page)