Tuesday, November 9, 2010

Food Prices Are Going to Dramatically Rise

If you haven't heard the news, food prices are likely going to dramatically increase in the next six months or so. The futures prices for many food commodities are at or near their recent highs which will mean that will have to be absorbed into the production system or passed on to customers. Since most food companies have absorbed most of the rising input costs up to this point it is likely with larger increases that they will pass them on to consumers. Get ready it may be double the price for or more for milk, meat, and cheese. Additionally, the dollar may lose 20% of its value due to quantitative easing (the fed printing money out of thin air - a hidden tax on us all) in the escalating currency rift with China.

A few items are in low supply including sugar, white wheat, corn, and cotton. All of these prices will probably continue to increase over the short-term and possibly long-term especially in the U.S. if the dollar is depreciated.

Here are a few recent articles about the future of rising food costs.

Rumblings of Inflation Grow Louder
Did I Mention that a Wheat Shortage Is Imminent?
Cotton Shortage Means More Expensive Clothing
Cotton Advances to a Record in New York on China Shortages, Global Supply
Rice shortage to jack up prices next year: Report
Sugar Is in `Goldilocks Economy' on Possible Shortage, According to Licht

Wheat flour shortage; WFP cuts rations

Venezuela: a different kind of food crisis

Food price fears as US warns on crop yields

So what can you do about the rising cost of food and clothes? How can you feed a family on an ever decreasing budget?

Here are a few solutions.
1) Grow a garden - this is almost a must
2) Save your own garden seeds
3) Take better care of your clothes
4) Use it up, wear it out, make it do or do without.
5) Buy food staples in bulk from a company like Azure Standard (west), Walton Feeds (west), Barry Farm Foods (midwest), Sam's Club, and of course the LDS Church Store (everywhere)
6) Cook from scratch

Some of these will ship for free if you have it delivered to a designated drop point in or near your town. You show up on the day of delivery and help unload or sort the boxes and bags by name and then take yours home. It isn't very hard and can save a fortune on shipping costs. Azure Standard has free shipping to a drop point if the order is large enough. The LDS Church ships free to your house. It is cheaper if you can it yourself at the closest LDS cannery, but you would need to schedule that and be a member or go with a member of the church. Even so, the LDS Church prices online are still pretty good and they are packaged in convenient to use #10 cans. Sam's club is a great place to get deals on white and brown sugar from sugar cane.

You might also try making your own laundry soap and other cost cutting measures.

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