Tuesday, July 10, 2007

Did You Notice That Your Grocery Bill Has Gone Up - Here's Why

I read an interesting article in Time Magazine, by John Cloud, and essentially he says that:

1. The main reasons why your food bill has increased about 4.4% over last years is because of increased energy costs, especially gasoline and diesel, which have an impact on the shipping of food from one place to another.

2. The price of corn has risen due to the demand for ethanol and that has an impact on products that include high fructose corn syrup and other corn derivatives.

3. Citrus prices have risen due to the millions of pounds of citrus that froze in California this year. Oranges have gone up almost a third in cost compared to last May.

He also says that food would be even more expensive if it weren't for government subsidies. All along we have enjoyed "cheap eats" because the government still subsidizes commodities such as corn.

We are also a nation that likes cheap calories - cookies over raspberries, although there are the foodies among us who pay dearly for arugala or mache over iceberg lettuce. Some of us just have to have that $80 a pound of Nantucket Wild Gourmet cold-smoked salmon. I buy pretty much only "organic" meat and veggies now - free of hormones and other nasty stuff, and have cut way way back on the other processed foods I used to buy, so there was a conscious trade off. But just the same, the article states that Americans pay proportionately less to feed themselves then other people on the planet. Supposedly, it's just that they choose to spend more money on other things in general.

As for me.. my food bill has gone up.. and the reason is quite simple
I have teenagers at home.