For those expecting rice and corn to be the only food prices to reach record levels, we have news. Chicken meat is going to be sold for more money this year because food companies noted sharply higher production costs. With oil and grains breaking record after record, there is nothing that can be done but to increase the prices, said Chief Executives from the two largest US companies.
Corn, which is a major feedstock, reached a record $6.5 a bushel this year because of high demand from food companies and the bio-ethanol industry. Chicken producers are concerned because they haven’t been able to increase their prices at the same rate their costs soared.
“We have attained some (higher) pricing but not at the same pace as our inputs have increased, especially in chicken. The lag of higher priced corn is just now coming through the products that we are taking to market,” Richard Bond, chief executive at Tyson Foods Inc, said on Thursday. The first solution producers will take, is to cut production 3 to 4 percent to generate the higher prices needed to cover costs.
Now I really wonder if anyone will listen to Jeffrey D. Sachs, who said that the African farmers are one of the solutions to the spiraling food prices, or if any will turn vegetarian if the chicken is going to be very expensive.