The Real Inflation Fear - US Food Prices Are Up 19% In 2014

Tyler Durden's picture


We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 - up a staggering 19%...



h/t Bloomberg's Chase van der Rhoer

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 03/26/2014 - 13:56 | 4594560 Wizard of Ozman
Wizard of Ozman's picture

I know what you are jiving about. I think the ingredient you are refering to is called AIR. It is much cheaper and lighter than both Peanut Butter or Milk. This ain't your Grandpa Ice Cream. Sucks

Wed, 03/26/2014 - 21:15 | 4596744 HardAssets
HardAssets's picture

I had a fast food craving this weekend and stopped by a small, local family owned drive in. Ordered two corn dogs (large, kosher dogs & hand dipped) and a chocolate malt. Price was over $10. I did a double check to make sure the totals were right and they were. Often a milkshake alone is around $ 5 today.

Naw, there's no price inflation.



Wed, 03/26/2014 - 16:28 | 4595479 Pee Wee
Pee Wee's picture

So send Breyers a message and ditch them for those that don't cut costs (and you pay more).

Wed, 03/26/2014 - 11:52 | 4594021 Fukushima Sam
Fukushima Sam's picture

Cellulose fiber is the next big food item; invest in sawmills.

Wed, 03/26/2014 - 12:12 | 4594112 Herd Redirectio...
Herd Redirection Committee's picture

Talk to Taco Bell, they will be a big customer.

Wed, 03/26/2014 - 12:14 | 4594119 Who was that ma...
Who was that masked man's picture

Hey buddy, could you spare a hundred dollar bill so a fella could buy a cuppa coffee and a handful of sawdust?

Wed, 03/26/2014 - 14:19 | 4594681 jerry_theking_lawler
jerry_theking_lawler's picture

Chemical cellulose has been on the menu for decades....entire business have been built around it.

Wed, 03/26/2014 - 13:00 | 4594319 DadzMad
DadzMad's picture

I thought I was getting stronger the other day when the bag of dog food seemed lighter.  Turns out it has gone from 40 pounds to 37.5.  The price stayed the same so that's not inflation.

Wed, 03/26/2014 - 14:05 | 4594600 Who was that ma...
Who was that masked man's picture

That's funny.  I found myself wondering how it would taste with a little gravy on it or some chili sauce.

Wed, 03/26/2014 - 14:31 | 4594736 DadzMad
DadzMad's picture

Sirracha for everybody!

Wed, 03/26/2014 - 21:21 | 4596777 HardAssets
HardAssets's picture

We give our little dog these treats that come 10 in a package. About a year ago I opened a package and notice that these treats (that come in stick form) were considerably shorter than before. I thought that maybe a machine got out of whack on the production line so opened another package and found the same thing. Price went up a little bit, but the doggie treats are less. Even Fido gets ripped off.

Wed, 03/26/2014 - 19:40 | 4596381 Buck Johnson
Buck Johnson's picture

I agree, and in many foods they have already gone both those routes and it's going the way of price now.  Do you truly believe everybody that Americans are ready for when their money and salaries can't buy enough for their families to eat, especially when 47 million people (white black etc. etc.) are on food stamps.  We are going to go nuts and crime will skyrocket not only in black neighborhoods but all others.

Wed, 03/26/2014 - 11:13 | 4593808 Manthong
Manthong's picture

Eating is highly over-rated.

There is a lot to be said for recycling fluids.

You have alternatives in the Brave NWO World.

Wed, 03/26/2014 - 11:24 | 4593881 asteroids
asteroids's picture

Hmmm. Hasn't Obozo cut back the food stamp program as well? Let's see, rising food prices, more people on food stamps, gasoline and health care going up. If you can find a job, it'll be part time too. Nope I don't see any problems here.

Wed, 03/26/2014 - 13:30 | 4594431 dontgoforit
dontgoforit's picture

Praise the Lord my 28 yr old son found full-time employment today with bennies!  We're celebrating with a can of Progresso (2-for-1) and some saltines!  It's all good.

Wed, 03/26/2014 - 14:55 | 4594905 cynicalskeptic
cynicalskeptic's picture

Companies are still screwing grads with the 'intern' scam.  Six months of minimal or no pay and then 'Good Luck' as they replace them with another intern.  Seems to be all about 'connections' in getting anything these days - and those near the top are the ones that have them - NOT the blue collar parents that scrambled to get a kid through college.  Two of our neighbors' kids spent 6 months to a year working for free on the promise of a full time spot than never came.  It's illegal but people are desperate and won't protest - plenty of others willing to do anything for 'experience'.

Competition for grad school slots is intense because more people are trying for graduate degrees that offer stipends  (better than NO job) but schools are also cutting back the number of slots with declining funding.  

Know a top school honors degree grad who wants to be a prof - already has research projects on his CV, amazing GPI - he's done everything right, someone that SHOULD be going on to teach because they're good at it.   He's hearing from PhD programs that they're reducing slots and simply don't have the money they used to.  They have a spot for next year but were rejected or waitlisted by schools they would have been a sure thing for in years past.  Plenty of classmates have nothing.  Advisors are shocked at how bad its gotten.


Wed, 03/26/2014 - 15:16 | 4595007 Manthong
Manthong's picture

America is the land of opportunity.

Keys to success:

a. motivation and determination
b. sciences college degree
c. digs in mom and dad's basement
d. bus tables and wash dishes during day
e. Russian and Mandarin language school at night

Wed, 03/26/2014 - 15:23 | 4595055 Binko
Binko's picture

There should be a special circle in hell for people who hire workers, profit from their labor and pay them nothing. It doesn't matter if you call them "slaves" or "interns", it's the same mentality.


Wed, 03/26/2014 - 18:25 | 4596014 Upland27
Upland27's picture

Interns are paid with experience, which is something low skilled workers won't get when the minimum wage is $15/hr

Wed, 03/26/2014 - 20:38 | 4596594 Seer
Seer's picture

Great!  Someone with a doctorate's will be able to intern at McDonalds! (programming robots to build hamburgers to sell to ???).

Wed, 03/26/2014 - 18:25 | 4596015 Upland27
Upland27's picture

Interns are paid with experience, which is something low skilled workers won't get when the minimum wage is $15/hr

Wed, 03/26/2014 - 15:24 | 4595061 Skateboarder
Skateboarder's picture

Advisors know nothing. They are so far removed from industry that the only thing they know is telling the lil' suckas which course path to take to fulfill degree requirements.

They also better shut up and maintain a 'keep calm and carry on' message, or risk getting the boot. You do know there is as much competition for advisor positions as there is for everything else.

Those who can't do, teach. Those who can't teach, advise.

Wed, 03/26/2014 - 20:40 | 4596602 Seer
Seer's picture

Excellent point!

It's no more than a sales job all the way down...

All caused by the belief that growth could be perpetual.  No amount of education/knowledge/brains can correct overlooking a poor premise.

Wed, 03/26/2014 - 15:30 | 4595103 James_Cole
James_Cole's picture

Two of our neighbors' kids spent 6 months to a year working for free on the promise of a full time spot than never came.  It's illegal but people are desperate and won't protest - plenty of others willing to do anything for 'experience'.

I often wonder where it's all headed. Know someone living in a posh place in Manhattan, attending a nice ($$$$$) school and working as... yep! an intern! A 'prestigious' internship landed through connections, but an internship. Guess who's footing the bill for all this? Hint: not .gov. 

I've got a pet theory that all this anti-education / cutting funding / privatizing bullshit is orchestrated because rich parents are sick of having their lazy dumbass spawn compete toe to toe with motivated less wealthy kids. 

That and the simple fact there's nothing to gain for the ruling class to have a well-educated populace. 

Wed, 03/26/2014 - 17:20 | 4595698 PT
PT's picture

Re "I've got a pet theory that all this anti-education / cutting funding / privatizing bullshit is orchestrated because rich parents are sick of having their lazy dumbass spawn compete toe to toe with motivated less wealthy kids. " :

Agreed.  I came to the same conclusion when wondering why so many courses are no longer graded but simply marked "Competent" (passed) or "Not Yet Competent" (failed).  Someone in a position of power wanted little Johnny's grades to be indistinguishable from everyone else's. 

Wed, 03/26/2014 - 21:32 | 4596827 HardAssets
HardAssets's picture

The attack on real education has been going on at all levels from grade school to university for a very long time, over a century. Its is based on the producation of compliant workers/citizens who cannot really think originally or for themselves or threaten the exisiting power structure.


Wed, 03/26/2014 - 11:41 | 4593962 LawsofPhysics
LawsofPhysics's picture

I am still amazed by the utter lack of appreciation for how much energy is required to provide food to for 7+ billion people.


My current crisis is a lack of bees for my orchards.

I do typically hire beekeepers to put hives on my property.

having a hard time getting my usual sources to commit in advance.


I wonder if some of the unemployed would be willing to get on ladders, collect and dry pollen

and then act like bees (like folks do in China already)?

"Winning"  bitchez...

Wed, 03/26/2014 - 11:45 | 4593978 El Vaquero
El Vaquero's picture

Mwahahahahaha!  I stood out under one of my peach trees and all of the bees sounded like rush hour traffic in a big city.   It's all free too!


(Sorry, I can't help myself sometimes.)

Wed, 03/26/2014 - 11:50 | 4594008 LawsofPhysics
LawsofPhysics's picture

You would be surprised by how much even a few percent increase in "bee traffic" increases production.

more than covers the cost (yes, MATH still is important, despite what the lamestream media and "common core" tells you).

Wed, 03/26/2014 - 11:53 | 4594026 El Vaquero
El Vaquero's picture

Barring a late freeze, I'm going to have to knock peaches off to stop branches from breaking.  I've never had a problem with having enough pollinators.  Now, retarded NM spring weather on the other hand...

Wed, 03/26/2014 - 13:13 | 4594372 stormsailor
stormsailor's picture

i love the sangre de christo mountains. i believe of all the places i have been on earth, that is the most tranquil, beautiful place i have ever had the privilege to be.

Wed, 03/26/2014 - 13:29 | 4594424 artless
artless's picture

@ el vaquero!

Feel free to box up all the peaches you want and send them fedex to me here in NYC. I'll figure out a way to pay for them if they are as good as the Texas peaches that seem to never make it up here. All we get is CA and GA amd some from NJ but none are as good as the Texas ones. Perhaps the NM strain are the same? 

Sometimes when I read stuff like this I question WTF I live in NYC.

Wed, 03/26/2014 - 18:00 | 4595882 Buckaroo Banzai
Buckaroo Banzai's picture

How anyone can live in NYC under the Wilhelm (aka deBlasio) administration is beyond me. Moved out a decade ago, and as of Jan 2014, I won't even visit NYC anymore.

Wed, 03/26/2014 - 15:15 | 4595000 Yardfarmer
Yardfarmer's picture

cull the blossoms and save yourself a lot of trouble.

Wed, 03/26/2014 - 20:45 | 4596621 Seer
Seer's picture

I love it when I see that someone knows their shit!

Can do this with lots of things, even tomatoes.  Helps promote better vigor in what you get.

Wed, 03/26/2014 - 12:03 | 4594070 El Vaquero
El Vaquero's picture

Jesus, who the fuck downvoted you for that?  I happen to live where there is enough in the way of pollinators.  Other's, not so much. 

Wed, 03/26/2014 - 12:38 | 4594216 KickIce
KickIce's picture

Hey, we can't be having discussions on people being self sufficient, all your food should come from Walmart.

Wed, 03/26/2014 - 13:05 | 4594343 HoofHearted
HoofHearted's picture

My wife has all the beekeeping equipment from when she was in 4-H. Our orchard is fine, and we get good raw honey out of the deal, much better than the processed Wal-Mart shit you could buy if you were a sucker. Plus, there is nothing like taking a pear that is just perfect off the tree and biting into it. OK, the honeycrisp apples are close, but peaches and apricots pale in comparison. Oh, I forgot about cherries...hopefully they will do something for us this year.

Great, just finished my frozen, heated up lunch and now I'm salivating over the thought of harvest with several months I'll have to wait!

Also, I'm noticing more people trying their hands at chickens this year. Maybe some people are getting the message, even if the message comes in more expensive foodstuffs...

Wed, 03/26/2014 - 13:14 | 4594379 El Vaquero
El Vaquero's picture

We had a freeze that may or may not have killed some of my plums.  I'll have to wait to find out, because it hit right about the time the blossoms should have started falling off anyway.  Pears, apples and peaches all started blossoming aftereward, so I know they're fine.  But it's NM.  It's entirely possible to have 65f-80f days for a week, then have a cold front come in that brings it down to the 20s in the middle of April.  It happened last year. 

Wed, 03/26/2014 - 13:25 | 4594413 PRO.223
PRO.223's picture

Mostly agree with you, but unlike most fruit which is the best hand picked at the peak of ripeness, pears don't ripen on the tree, they get hard spots and don't sweeten up.

Wed, 03/26/2014 - 13:34 | 4594447 dontgoforit
dontgoforit's picture

Chickens have been around here for quite a while, but I think you're right - folks are starting to figure things out.

Wed, 03/26/2014 - 13:50 | 4594522 Miffed Microbio...
Miffed Microbiologist's picture

You are truly fortunate El Vaq. We also have plenty of bees on our trees. However, Monsatan seems to be the primary reason why bees are disappearing. I've noticed viscious attacks from them on research pointing this out. Funny how they proposed their methods would feed the world and it is most likely be they will be the cause of famine.


Wed, 03/26/2014 - 18:02 | 4595890 Independent
Independent's picture

LOL guess you are blessed with some African honey bees.  Just be careful standing under the tree when in bloom ;)

Wed, 03/26/2014 - 12:28 | 4594164 RSloane
RSloane's picture

I know you know more about bee keeping than I ever will Laws, but I took your advice and arranged weathered wood planks that were gently resting on each other with some planks horizontally in a row with more planks on top of them. I poured honey, sugar water, and clumps of hives over it that I bought from a farmer and got quite a few new bees out of it. I think the colony will grow this year. I don't mess with it other than to gently pour more sugar water on it when its been very dry. I'm not interested righrt now in harvesting the honey, I just want the bees on my property. And yes they do get drunk with certain flowers planted nearbye! Funniest thing I ever saw.

Wed, 03/26/2014 - 18:11 | 4595933 Independent
Independent's picture

@ El Vaquero:  Hey El what city do you live in, if you don't mind me asking? Or rough geographical location.  Sounds like you got some fine soil where you are at, and nice growing conditions.

How is your water situation though.  Do you have a well?

Wed, 03/26/2014 - 18:45 | 4596112 El Vaquero
El Vaquero's picture

I am in NM, and yes, I do have a well.  The water table at my location is roughly 6 feet, give or take, and the irrigation well is 32' deep.  I'm going to eventually put in a pitcher pump on a 1 1/4" well that I'll need to drive.  The growing conditions aren't always nice, however.  Last year, I got no peaches (or any other fruit, except for strawberries) due to a late frost.   Then we had the second hottest June on record with zero precipitation and brutal sun, followed up with a storm in July that literally hit with the force of a category 1 hurricane and dumped 2.5" of rain and hail in under an hour.  I didn't have toads in my back yard after that, I had frogs.  It almost ripped some of my squash plants out of the ground, put holes in the foliage of everything and lodged all of my corn right after it had tassled. Last year was brutal, and if it survived to go to seed, it was resiliant.  


Being at 5000 feet altitude, I always have to pay attention to where the seeds originally came from.  Seeds that where the producer reccomends full sun may do best here in partial sun if the seeds were produced in, say, Oregon. 

Wed, 03/26/2014 - 12:11 | 4594104 CrazyCooter
CrazyCooter's picture


You seem to have a pretty level head about things ... do you have an opinion on the bee problem? I know hives have been collapsing, but I haven't done any real digging on the subject as I have enough irons in the fire.

This is a serious issue I think most people don't appreciate.

I kind of have a gut feel that the GMO stuff is probably killing them off, but that seems it would be pretty easy for a university team to replicate.

Just fishin for some insights ...



Wed, 03/26/2014 - 12:15 | 4594121 El Vaquero
El Vaquero's picture

Everything I've read points to it being a multitude of things all at once.  I've not studied it in depth though. 

Wed, 03/26/2014 - 13:00 | 4594180 Flakmeister
Flakmeister's picture

Its a combination of things, including unintended effects of fungicides

Here is the original research article

Wed, 03/26/2014 - 15:16 | 4595012 Overfed
Overfed's picture

It seems that the prevalence of GMO, pesticides, fungicides, etc. is causing bees to lose much of their natural defenses to various fungi, bacteria, and mites. Nosema and Varroa are pretty problematic in my neck of FEMA region X.

Do NOT follow this link or you will be banned from the site!