Grocery prices rising? - NBC12 - WWBT - Richmond, VA News On Your Side

MORE BANG FOR YOUR BUCK

Grocery prices rising?

By Jennifer Warnick - bio | email
Posted by Terry Alexander - email

RICHMOND, VA (WWBT) - Brace yourselves. In the next year, you may be surprised by what you have to pay for food. Agricultural commodity prices are rising and what's good for one crop might not be for another. 

Drought and floods ruined many of the wheat crops, creating a ripple effect across the farming industry. It's Jonah Bowles' job to track these trends. He is an Agricultural Economist at the Va. Farm Bureau. 

"Grain prices are going higher now because we have lowered our production estimates for this year, those higher prices are directly impacting the livestock industry that uses those grains for feeds," said Bowles. 

That means possible prices hikes on beef and dairy products. 

"But they have such a little impact on our overall food prices that we pay," he said. 

When you start adding in fuel and labor costs and a staggering world economy, manufacturers can't take that kind of hit to their bottom line. 

"When input costs go up the tendency is to increase the cost of the final good," Bowles explained. 

The 2008 biodiesel boom skyrocketed the demand for corn and its price went up. With so much acreage devoted to corn, farmers grew less of other crops. The prices of those other crops went up to make up for smaller yields. 

"So we are now under a new supply-demand scenario," Bowles said. 

Some manufacturers found they could make the packages smaller to avoid raising prices. 

"It doesn't take a very large change in size to cover added costs," Bowles stated. 

At this point prices have leveled out, but they did so at a slightly higher rate. So any increase on the front end of production could be passed on to you, the consumer.

Copyright 2010 WWBT NBC12. All rights reserved.

  • More Bang for Your BuckMore Bang for Your BuckMore>>

  • Post-holiday deals: What's on sale in January

    Post-holiday deals: What's on sale in January

    Friday, January 5 2018 4:36 PM EST2018-01-05 21:36:28 GMT
    Source: NBC12Source: NBC12

    The holidays are behind us, but the sales are not. These products will have the biggest price drop during the month of January.

    More >>

    The holidays are behind us, but the sales are not. These products will have the biggest price drop during the month of January.

    More >>
  • Are you a 'yo-yo debtor'?

    Are you a 'yo-yo debtor'?

    Friday, December 1 2017 2:30 PM EST2017-12-01 19:30:39 GMT
    Source: NBC12Source: NBC12

    You’ve heard of yo-yo dieters, people who lose weight just to gain it back, then start the dieting cycle again. Experts now warn the same type of up and down cycles are happening with too many people’s credit cards.

    More >>

    You’ve heard of yo-yo dieters, people who lose weight just to gain it back, then start the dieting cycle again. Experts now warn the same type of up and down cycles are happening with too many people’s credit cards.

    More >>
  • Deal Diva: How to master online discounts

    Deal Diva: How to master online discounts

    Wednesday, November 29 2017 11:26 AM EST2017-11-29 16:26:12 GMT
    Learn how to master online shopping discounts.Learn how to master online shopping discounts.

    Just because Black Friday has come and gone, doesn't mean the online deals are over just yet.  You really don't have settle for full price when shopping online, there are a few tricks and hacks to help you save online, not just during the holidays, but year-round.  

    More >>

    Just because Black Friday has come and gone, doesn't mean the online deals are over just yet.  You really don't have settle for full price when shopping online, there are a few tricks and hacks to help you save online, not just during the holidays, but year-round.  

    More >>
Powered by Frankly