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Soaring Food Inflation Full Frontal: Beef, Pork And Shrimp Prices Soar To Record Highs

Tyler Durden's picture




 

We previously noted that both beef and pork (courtesy of the affectionately named Porcine Epidemic Diarrhea virus) prices have been reaching new all time highs on an almost daily basis. It is time to update the chart. Below we show what a world in which the Fed is constantly lamenting the lack of inflation looks like for beef prices...

 

... pork

 

... and shrimp.

More from Bloomberg:

Prices for shrimp have jumped to a 14-year high in recent months, spurred by a disease that’s ravaging the crustacean’s population. At Noodles & Co., a chain with locations across the country, it costs 29 percent more to add the shellfish to pastas this year, and shrimp-heavy dishes at places like the Cheesecake Factory Inc. are going up as well.

 

Restaurant chains, already struggling with shaky U.S. consumer confidence, are taking a profit hit as prices climb. Even worse, the surge is happening during the season of Lent, when eateries rely on seafood to lure Christian diners who abstain from chicken, beef and pork on certain days.

 

“It’s coming at a tough time for the industry,” said Andrew Barish, a San Francisco-based analyst at Jefferies LLC. “With the Lenten season, what you’ll see out there is a lot of promotions with seafood, and usually shrimp is a big part of that.”

 

In March, shrimp prices jumped 61 percent from a year earlier, according to the U.S. Bureau of Labor Statistics. The climb is mainly due to a bacterial disease known as early mortality syndrome. While the ailment has no effect on humans, it’s wreaking havoc on young shrimp farmed in Southeast Asia, shrinking supplies.

 

***

 

James Johnson, a Jewel-Osco supermarket shopper in Chicago, has noticed the price increase. He’s been cutting back on one of his favorite dishes -- shrimp and potato soup -- because of the cost.

 

“I haven’t made it in a while,” the 29-year-old said. “Shrimp looks expensive.”

 

***

At Noodles, it now costs $3.34 to add the shellfish to a meal of pasta or pad thai, compared with $2.59 last year.

 

“We still want to at least offer it as choice,” Chief Executive Officer Kevin Reddy said in a phone interview. “As soon as the costs begin to normalize, we’ll return to the regular price.”

Ah yes, because retailers are always so willing to lower costs...

So for all those whose sustenance includes iPads and LCD TVs, or heaven forbid the pink slime known as fast food - you are in luck: the BLS' hedonic adjustments mean the rate of price increase in your daily consumption has rarely been lower. For everyone else: our condolences.

 

* * *

Update: Eggs too.


 

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Wed, 04/16/2014 - 04:22 | 4664272 Seer
Seer's picture

Yup, it does make it hard...

Tue, 04/15/2014 - 22:12 | 4663795 fwaynemartin
fwaynemartin's picture

Compare the FAO index to oil prices and increase in biofuel production. Therein lies the correlation. 

 

Sorry to disappoint JohnCole, but California has had 200 year long droughts before, and SkepticalScience is a den of liars. Oh, and there hasn't been any globaly warming for 17+ years. Thanks for your analysis. 

Tue, 04/15/2014 - 22:13 | 4663797 lakecity55
lakecity55's picture

Hmmmm, just had some fresh shrimp caught within 24 hours right cheap.

Bowen's Island.

Wed, 04/16/2014 - 02:10 | 4664156 AgentScruffy
AgentScruffy's picture

Time for us all to brush up on fishing skills.

Wed, 04/16/2014 - 04:29 | 4664276 Seer
Seer's picture

Well, I don't have $30k for a boat and trailer. then another $1k for all the gear, and...  I'm constantly amazed at how much money people spend on all the "fishing gear" so that they can catch a couple of fish every-other week or so.  Lots of that and "horse people" in my area. I keep eyeing their stuff wondering whether at future discounted prices I'd have any interest: I think that mostly not; TONS of really nice diesel trucks, but I see these huge  flashes of repair and maintenance horrors...

Tue, 04/15/2014 - 22:26 | 4663829 AdvancingTime
AdvancingTime's picture

It is interesting to think about how vegetable  prices might act if the drought in California  worsens. Prices under the pressure of changes in supply and demand can be a lot like a carnival ride.

By this I mean fast and abrupt swings can take place and often we see prices go to unimaginable extremes. It would be better to say changes in "supply or demand", we should fully realize the market works best when at least one side of the equation remains somewhat stable. More about how inflation effects supply in the article below.

http://brucewilds.blogspot.com/2014/02/inflation-can-effect-supply-and-d...

Tue, 04/15/2014 - 22:33 | 4663851 Yes_Questions
Yes_Questions's picture

 

 

Perfect timing for the Reaping.

 

Fuck You Various three letter agencies!

 

Dinner party this weekend was seafood oriented (no pun). HOLY JEEEEEESUS!  Skrimps upward $17/lb!!!

 

had to get imported fecal fed to have money for the appetizer..

 

which could have been a bag of blow at these prices.

 

SHIT!

 

 

Tue, 04/15/2014 - 22:55 | 4663898 Ocean22
Ocean22's picture

Victory gardens bitchez! And a freezer.

Wed, 04/16/2014 - 14:54 | 4666194 Canoe in the Desert
Canoe in the Desert's picture

If you like your victory garden...you can keep your victory garden. Ha Ha Ha! - "Obysmal"

Tue, 04/15/2014 - 23:09 | 4663933 NoWayJose
NoWayJose's picture

Chained inflation - if beef and pork prices go up - just switch to earthworms... or crickets...

Wed, 04/16/2014 - 00:29 | 4664064 Grouchy Marx
Grouchy Marx's picture

Let them eat cake.

Wed, 04/16/2014 - 00:34 | 4664071 Philalethian
Philalethian's picture

The biggest story in the world is still happening.

http://www.youtube.com/watch?v=uqQRhJjS0ww

 

Wed, 04/16/2014 - 12:46 | 4665552 AndrewJacksonsGhost
AndrewJacksonsGhost's picture

Kind of stretching there a bit aren't you? Yes, Reid is a corrupt sombitch but the biggest story in the world?

Wed, 04/16/2014 - 14:32 | 4666077 Constitution First
Constitution First's picture

For the monent it is.

Let's exstrapolate for a monent:  A Senator who should have gone to jail because he took bribes in ABSCAM, who keeps Congress from getting any meaningful spending reforms acomplished, takes bribes from Chinese nationals to build solar farms, no one aksed for, to produce power at four time the going rate, but to do so, he must persecute a sixth generation rancher off the lands his ancestors grazed for 140 years...

If Dirty Harry can do this to Bundy, then no one is safe. Like 'the shot heard 'round the world' this is our the line in the sand.

Dirty Harry: You Shall Not Pass!

Wed, 04/16/2014 - 00:41 | 4664081 malek
malek's picture

Beef prices doubled in 14 years, I'm assuming those prices are in constant 20xx UD Dollars?

Well that means unreported inflation is 5% annually, on top of the reported one.
Which would be less than I believe we gave - a bright spot in the picture! /sarc

Wed, 04/16/2014 - 03:57 | 4664250 Remnant_Army
Remnant_Army's picture

Friday, July 8th, 2011

"Plan your food supplies now. Grow and buy seeds that will keep you alive. Buy silver coins or gold, so that you can buy what is necessary."

 

http://www.thewarningsecondcoming.com/eternal-father-will-prevent-new-wo...

Wed, 04/16/2014 - 05:54 | 4664320 dogismycopilot
dogismycopilot's picture

i must admit, the Globalist Masters have a sense of humor. I was just reading my National Geographic and there is a story on the last page about a new 'food' called Soylent. This is not a joke. It is in this months newstand copy of National Geographic. Here's the blog for the company 

 

http://blog.soylent.me

 

"We just got news today that the expedited initial shipment of rice protein cleared customs at LAX late last week, and is currently on its way to the production facility on Colorado. Once the protein arrives, it will subject to a number of quality control assessments, a process that takes about 5 business days. Assuming that it passes these tests, we will be on track to begin shipping the first orders of Soylent around April 17th.

Kosher certification is something we’ve been hoping to achieve, and we’re happy to announce officially that the Soylent dry powder will carry the Star-K certification. Unfortunately the custom oil blend (canola+fish oil) will not be Kosher certified, but we hope to remedy that in future orders.

Finally, if you’re a National Geographic subscriber you may have already seen the short article on Soylent in the April 2014 issue that hit newsstands last week. If not, we encourage you to check it out!"

Wed, 04/16/2014 - 06:26 | 4664340 CHX
CHX's picture

Deflated by the Fed's balance sheet, and we have - deflation, so what's the beef? Nothing to see here. /sarc

Wed, 04/16/2014 - 07:01 | 4664377 Last of the Mid...
Last of the Middle Class's picture

QE's gift to the common man. Enjoy!!! This will go one for a generation or so to pay for TBTF, and the 85 billion a month "easing". Now we enter the pay to play phase the banker elite and b.s economists have signed us up for. Everyone should think with each mouthful of higher prices just where and how did I vote for this insanity. Much more to come I'm afraid. Eat your peas!

Wed, 04/16/2014 - 07:09 | 4664390 Seer
Seer's picture

Here's commentary (April 14th of this year) from someone in the Big pork industry:

http://www.bettermail.ca/m/544/86087/78f961dbd82b0dbaf2a09ad8f111afca

The US hog market continues to run over $100 per head higher than last year.  It is unprecedented, with weekly US hog marketings of over 2 million a week and pork production just fractionally lower than a year ago – it is truly amazing to us this price surge.

Wed, 04/16/2014 - 12:39 | 4665506 Polymarkos
Polymarkos's picture

"...and when we couldn't get crawdads, we ate sand."

 

That's about all I can afford to eat these days...sand.

 

I'm sure someone will find a way to charge me for that.

Wed, 04/16/2014 - 12:44 | 4665541 AndrewJacksonsGhost
AndrewJacksonsGhost's picture

But, but, but inflation is at historic lows I am told by the DNC media.

 

I wonder what the GDP numbers would be if they did not MiniTru them over the years?

 

If you deficit spend 10% of GDP each and every year, shouldn't that number come off the GDP growth rate?

Wed, 04/16/2014 - 13:05 | 4665631 matinee55
matinee55's picture

stfu, your all liars, there is no inflation only money printing from the fed gods that everyone loves, love debt, love leverage, sorry 99%

Wed, 04/16/2014 - 14:44 | 4666124 Constitution First
Constitution First's picture

Monitizing the debt is the very definition of inflation.

Aside from some global catastrophe like war, famine or plauge, the only meaningful mover of inflation is the weakening the value of currency through over printing.

And it's not 99.0%, it's 99.9999999999% You could fit the entire New World Order in a Builderburg hotel and still have room for the servents.

Wed, 04/16/2014 - 14:42 | 4666125 Constitution First
Constitution First's picture

double post, sorry

Wed, 04/16/2014 - 22:15 | 4667958 mjazzguitar
mjazzguitar's picture

Yes, there is no inflation.

Everything just costs more.

Wed, 04/16/2014 - 14:42 | 4666132 Canoe in the Desert
Canoe in the Desert's picture

Headline: Obama Fights Obesity by Making Food Unaffordable.

Wed, 04/16/2014 - 15:02 | 4666236 Constitution First
Constitution First's picture

And overpopulation with Unaffordable Heathcare.

Wed, 04/16/2014 - 18:04 | 4667003 Iambic PentaMaster
Iambic PentaMaster's picture

Who needs food, anyway?

It begins.

Wed, 04/16/2014 - 22:13 | 4667951 mjazzguitar
mjazzguitar's picture

Those EBT cards won't get you as much as they used to.

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