Raw material foodstuff price contracts are expiring, and the new purchasing prices will be significantly higher than current. As these contracts refresh, the new higher prices immediately enter the food supply chain. CTH has been warning readers to stock up on non-perishable items as this next wave of food price increases is going to be much bigger than even the prior 8%/avg jumps; and there is absolutely no end in sight.
Also, as more large municipal regions (megalopolis metropolitan areas like New York City and Los Angeles) begin enforcing a vaccine passport to eat in restaurants, the demand for meals at home will remain high. Supermarkets again will fill the void in the diet of consumers who choose to remain at home instead of eating out.
The current demand on retail food products is likely visible to you in the form of bare shelves and minimal inventory.
Grocery retailers operate on paper thin gross profit margins and rely on fast turns of multiple penny profit items to add up to net profit income. Technology has helped modern grocery supply chains to be very thin.
An inventory shortage arises when demand on the retail grocery industry spikes – which is what we have seen with COVID impacts as alternative food options were forcibly closed or pressured to reduced capacity.
Conagra is one of the large food conglomerates with control over products from field to fork. Recently, Conagra executives announced they expect food prices to climb even higher due to all of the aforementioned impacts, along with large price increases in fuel and energy.
Wall Street Journal […] Conagra said Thursday it expects gross inflation—which doesn’t take into account hedging—to be about 11% for fiscal 2022, versus its earlier estimate of 9%. The company plans to continue adjusting prices and cutting costs, and said its prices likely will rise 4% or more during the current fiscal year.


In order for radical leftists to continue to advance their ideological attacks, they have to pretend not to know things. Barack Obama took that long-standing truism to new levels of exploitation during his administration, reference: ‘Fast ‘n Furious, IRS targeting, Obamacare, Benghazi etc. The list is long.