You already know prices have gone up
Over the past year, you’ve probably noticed the price of eggs decreasing. Poultry has had a bad couple of years, after the avian flu crisis and we’re finally seeing consumer-friendly prices.
On the other hand, farmers are experiencing one of the worst years in history. The USDA just purchased $20 million worth of cheese and many dairy farmers are sampling dumping milk onto fields. According to the Wall Street Journal, corn futures closed at an all-time low in August at less than $4.00/ bushel.
However, even though 2016 is looking good, the USDA is predicting that the price of some foods will increase in 2017.
Which foods are about to go up even more?
- Dairy – even though prices of dairy are down 3.1 percent from last year, it’s highly likely that the prices will go back up about 1.5 to 2.5 percent in the upcoming year.
- Fresh fruit – the price of fruit is going up, and it will continue to rise through the end of year, and next year, we can expect another increase.
- Poultry – as mentioned, poultry prices are down this year, but expect to see them go back up in 2017 about 1.5 to 2.5 percent.
- Vegetables – although we might see a slight increase over the next few months on vegetables, the prices should stabilize in 2017, not changing very much.
- Cereals and bakery products – get ready for another price increase on products made with grains. Throughout the rest of the year, prices are expected to go up 1 to 2 percent, with another increase in 2017.
What does this mean for you?
Don’t think that increased food prices won’t affect your business if you aren’t in the food industry. When the prices of something as basic as food go up, it creates a ripple effect across all businesses. It might slow down any expansions in restaurant building or even affect how often people go out to eat. Low-income families may have to make tough choices about whether to buy groceries or clothes for their families. Be aware that costs may be increasing next year and consider how your business may be affected.