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Sysco declares force majeure, raises grocery prices
Food
inflation driven by freezing weather in Florida during December and in
Mexico during February, is hitting the US supermarkets in the coming
day’s. Sysco sent out an alert that announced an “Act of God”, to
address their contracted supply issues.
The cold of the Superbowl weekend in Texas, has had a more lasting
impact than on just the game plans for lots of travelers. The deep cold
sank into the produce fields of northern Mexico, destroying fresh
produce crops. This is the biggest page 16 story, about to hit a
headline, that you have seen in a while. Your restaurants will be low
on fresh produces for weeks. They will have to raise prices
significantly or cut the produce out of the menu.
On Feb. 8, the U.S. Department of Agriculture reported
prices of $22.95-24.95 for two-layer cartons of 4×4, 5×5 and 5×6
vine-ripe field-grown tomatoes from Mexico, up from $6.95-9.95 the
week before and $5.95-7.95 the year before.
This cold storm has brought to the food growing region the coldest
temps in 50 years. This has caused damaged to most of the fresh produce
available to US supermarkets in the winter spring season. This is
going to impact the price you pay at the Supermarket anywhere in the
North American continent.
This
event will add to the worlds food supply issues already impacted by
fires in Russia, rains in Australia, droughts in China, and now freezing
temperatures in Florida & Mexico. Here are some quotes on the
topic
“The last time there was a freeze of this severity was
1957,” said Jerry Wagner, director of sales and marketing for Nogales,
Ariz.-based Farmer’s Best. “It’s still too early to tell, but there’s
a lot of damage.”“It’s been a rough day,” said Lee Anne Oxford, marketing director
for Raleigh, N.C.-based grower-shipper L&M Cos. Inc. “Right now we
have all of our growers out in various fields. We’re expecting to
regroup over the weekend and hopefully know where we stand by Sunday.”
“The early reports are still coming in but most are
showing losses of crops in the range of 80 to 100%. Even shade house
product was hit by the extremely cold temps. It will take 7-10 days to
have a clearer picture from growers and field supervisors, but these
growing regions haven’t had cold like this in over half a century.”
“Florida normally is a major supplier for these items as
well but they have already been struck with severe freeze damage in
December and January and up until now have had to purchase product out
of Mexico to fill their commitments, that is no longer an option.” Via
Sysco Alert
“Supplies of tomatoes, peppers, cucumbers and other
vegetables from Mexico will be severely limited until at least March
following an early February freeze.”
This event will push up the price of produce in the US for the next
few months. The bigger question is if the US wheat crop was damaged by
the cold weather before the heavy snow fell to blanket it.
H/T Wattsupwiththat
Links of Interest to Article
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This is the second time this week I am hearing the term "force majeure" which is a legal term of art for acts of God and other forces beyond one's control.
I have a feeling we are going to be inundated with this term as well as the "Tsunami Defense" in the coming weeks and months.
"Weather as a Force Multiplier: Owning the Weather in 2025"
feed it into a search engine, kick back and read. . .
"U.S. Military Wants to Own the Weather"
http://www.space.com/1725-military-weather.html
and whenever y'all are ready:
http://geoengineeringwatch.org/
it has more links than you can read in days. . . choose whichever appeal to you - it may look "sensationalist" as a site, but I can assure you, there are links to government docs, including UK & European, if you take the time to get into some of the writing.
and, perhaps ponder why FEMA is sourcing food and water for the New Madrid Fault System, the 200 year anniversary of the massive earthquakes that sent the Mississippi River flowing backwards in 1811/1812. . .
http://offgridsurvival.com/femanewmadrid/
. . . right where all those birds died in flight, before falling to the ground in the Arkansas/Louisiana, etc.
http://health-lines.com/arkansas-massive-bird-death-autopsy-reveals-secr...
Interesting Point WB7 - A friend of mine had purchased tickets in December for a trip to Egypt & the travel service is indicating to him that he may be able to have his purchase refunded under 'Force Majeure' - Strange as this term has surfaced time & again recently....Wonder if there is a Federal Majeure the Bernank can use to accelerate fiat creation?
The Federal Majeure happened in 1913- it is the Fed.
GO LONG CAN OPENERS!!!!
Sysco's bid was no friend of mine.
+++
i LOVE THAT SONG! THANKS FOR BRINGING IT UP
He was just a kid and drank a lot of whiskey, so go easy in Sysco...
Good one.
Agreed ;-)
I'm in tears, shall I kill the joke? Yes, I shall:
http://www.youtube.com/watch?v=YllP22mVZQg
didn't cross my mind about CSCO, maybe that's the problemo
- Ned
Sorry, this is NOT a good article.
it suggests the higher food prices are a consequence of the bad weather which is wrong. Perhaps Mr. barnes should have a look at some comodity charts and then he will understand what's really going on. And it's only the beginning !
someone was complaining last week that he knew a pepper farmer in Ca who didn't plant this year. I note that one TV news feature attributed the problem to labor, the anti0immigration policies are working. Peppers are a manually picked crop, but some farmers are trying to machine pick. We have lost a lot of people who do this work for us, however the agriculture is done in Mexico rather than in the US
Here is CA tomatoes are expensive and lousy just like always. (Univ of CA tomatoes, you can truck them anywhere, but who would want to) A pound of heirloom at Trader Joe was $5. But they have their beefstakes, (mexico) 79 cents and a day or two in the window sill and they're fine.
Tougher immigration policies? There are still 12-20 million illegal immigrants here. How many are needed to pick crops?
Only about 1.2 Million. The vast, vast majority here do not work in the farm fields. Only a small fraction, contrary to the myth put out by the MSM.
I have absolutely no problem with getting produce. Better produce than you can get at TJs or Whole Foods. If you're complaining about quality or quantity or price, you're doing it wrong. Try buying locally. I get it delivered to my door cheaper, fresher and better than what you can find in the stores.
The anti-illegal story is just propaganda. That farmer doesn't want to pay a decent wage. Raise the wages and you'll get more workers. That's how markets work.
not sure if serious.
On the off chance you are serious, do you really think supply and demand have no effect at all, and inflation is the only cause for rising food prices?
There is less supply, while demand remains the same, so the sellers can either: a) sell out fast at the old price, taking an overall loss due to reduced volume or b) charge more and still sell all of it.
Or are you proposing the bad weather is purely a lie, and there is no freezing in Florida and Northern Mexico?
COMpletely serious
Such supply/demand issues due to weather have always existed and are seasonal. What I'm talking about is wheat,corn,rice prices going to the moon, because the Fed wants a high inflation.
Expect this soon to make headlines even on CNBComcastaganda
so you're saying that ALL of the price increase in food is purely due to inflation, and has nothing at all to due with higher than normal crop losses from bad weather?
I believe he is saying that it seems. The one guy several comments up said that the weather is in fact a lie, it didnt occur and that it is a lie, or some rubbish, by the benrnakster. He is getting way too much credit.
"Weather" is a commie plot to sap and impurify our precious bodily fluids. There has never been such a thing as weather, and any argument to the contrary is evidence of the efficacy of a concerted Illuminati propaganda system.
So I take it you only drink distilled water or rain water, and only pure grain alchohol?
Name one year in the last century where there were equivalent crop losses in Russia, Korea, Australia, America, Mexico, and China, within less than 12 months.
To look at it another way, copper is up around 50% and wheat is up around 100% over the last year, so we could infer that there is a 50% price increase due to inflation, and 50% due to shortages and other factors. I am not disputing inflation is happening, I am saying there is a combination of higher than usual crop losses from weather combined with inflation to cause a rapid, significant increase in food prices.
Great find, Jack. Thanks for posting it.
Global warming!! Where the fuck is Al Gore...that dickhead who invented the internet?
One of the biggest fraudsters of all time, Al Gore.
He cashed in at the top after massively blowing the bubble that was Global Warming.
Just another shyster politician snake oil salesman.
Big Al is king of the hypocrites...
Got supply chain ? Lettuce getting in short supply in my midwestern area.
Strawberries sold out last thurs.
Is the freezing due to high unemployment?
Only if you're a realtor trying to sell houses...
Is the freezing due to high unemployment?
High unemployment is due to global warming....wait, that's the freezing...no the freezing is due to the deflation in the thermometer. That's why the Bernank keeps printing....to fight the fucking deflation.
BTFD and BTFVeges!
No, silly, the freezing is due to global warming.
Do you mean climate change? ... but in what direction?
It seams, climate has peaked. We need more climate growth!
Must call Ben and Tim, they must have a stimulus for the problem.
Arctic Oscillation. Warmer air at the N. pole causes a jet stream shift that send cold air down the mid-continent.
Pole shift of the planet is imminent as our solar system approaches the galactic plane. It happens approximately every 3600 years.
George had a guest who said we are way 'north' of the plane. Imminent, any time now, something about how the Aztecs had it all figured out. Feynman had decyphered all of that long ago.
Art Bell wasn't available for comment ... (he does show up in a retro-broadcast tonight).
- Ned
Extremely anomalous weather patterns and seismic/volcanic activity appear to be increasing. If this phenomenon is cyclical, which geologic evidence seems to suggest, then perhaps extreme weather and greater tectonic activity are indicative of, and serve to validate pole shift theory.
I believe something catastrophic is about to happen to planet Earth.
If the poles shift again the earth may go hundreds of years or more without magnetic protection. Solar storms might kills us then. I suppose we will become a nocturnal species for a few generations. Only criminals and ne'er do wells are out at day!
There is much evidence that some magnetic reversals occur in a span of a handful of years and that the solar wind may generate a strong enough field to keep us from being bathed in excess radiation anyway. Otherwise none of us would be here.
This will obviously be suboptimal for unshielded computer equipment, but we've somehow managed to run processors in space until now.
Do you really believe that and how come? Im not mocking you; I generally am interested on your thoughts. You seem intelligent. thanks.
I began researching this subject about 10 years ago, so I'll forego a full dissertation. I believe some elements of the Bible are based upon fact, specifically The Great Flood and the story of Noah in Genesis.
There are several theories that are circulating that would explain the geologic evidence showing the Earth's poles being situated at different locations at different points in geologic time. For instance, the State of Alaska used to be where Hawaii is currently located. Some believe in an expanding Earth theory, while others think that our solar system is a binary star system, with a brown dwarf "sun" returning to our part of the solar system every 3660 years. The crossing of the galactic plane would explain pole shift if it could be confirmed that a large black hole exists in the center of the Milky Way galaxy.
Why does recorded human history only go back about 5,000 years? Humans have been around a lot longer than that.
I believe something happens every few thousand years, a great die-off if you will.
Exactly how much MDMA have you eaten and when was your last bad batch?
We (earth, the sun) cross the 'galactic plane' twice a year. Every fucking year.
Magnetic north changes every year. Thats why good compasses have a little screw in the back, to compensate for magnetic declination. Good maps have the declination printed on the bottom left.
the mahabarata, is older than 5000 years, as are the sumerian tablets
Climate Change does not mean the planet as a whole is neccessarily hotter or colder; it just means the hot and the cold parts are mixing around a bit, so you can have sweltering heat in Siberia, followed by frost in Florida and Mexico. A Typhoon and flooding on one side of Australia, and a drought on the other, rather than a moderate mix across the continent as a whole. At least we get more content for Storm Chasers and Anderson Cooper. Always look on the bright side, of death.
So when the hot Latina came into the Pub near Boston the night after 22" snow, she was just doing her part for 'global climate change'?
I commented at the time that we 'need more of that'! ;-)
- Ned
Absolutely, there is no way it cannot be global warming.. It is the science that cannot be false, no set of facts, observations or lying ass academics can ever prove global warming wrong, it is not possible.. Are you seriously this stupid, you make sheep look smart.. Possibly that was sarc and I should apologize?
wow! Have you looked at all the data of previous thermal maximums? The earth has been a lot hotter than this in the past. We don't really know for sure how fast the earth heats up too when temps shift. This may be normal variation. Recent temperature data suffers from period effects. When the earth cools down it is really fast. we are better able to assess that because the hot events have been fairly remote but the ice ages have been fairly recent. It is possible this is normal variation. Normal volatility in temperature may be higher than we think.
Global Warming != Climate Change, and no one is saying Anthropogenic. Before I continue, I suppose I should ask, do you understand all of the words I am using, or do I need to explain more?
Do you deny that over the last couple of years there has been a higher than usual frequency of extreme weather events? Do you deny that crop loss from bad weather is a major factor in rising food prices?
The parts about watching Anderson Cooper and Storm Chasers was sarcasm.