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September 5, 2011

Why Grocery Prices are Rising




A walk down any isle at the Grocery Store will reveal one thing…. prices are going up! The increase is seen in just about every food item, and there is a reason for this. Just about everything uses either “fillers” or “sweeteners”, both of which come from two main grains; wheat and corn.


Many of our cereals are made from corn, which has almost doubled in the past year, and will continue to rise mainly due to the drought, heat and fires that have been experienced in Texas this year. The state usually harvests around 2 million acres of corn every year, which gives a cash value of $514,000,000 and creates $1.7 Billion for the state. It’s safe to say that those figures will not be the same this year.

The farmer is not the only one that will feel the impact. You, the consumer, will see it every time you go to the store, as prices will continue to climb higher and higher.


Wheat is used in our breads, pastries, and pasta and has been a principal crop since the 18th century. In addition to filling our domestic needs, wheat has been a major export item for many years. In the past few years, US wheat farmers have had to deal with changes in the climate, crop disease and natural disasters. Recent flooding of crop lands has basically destroyed thousands and thousands of acres of once fertile farm land. Many farms were totally wiped out when the levies were blown by the Corp of Engineers to aid in the flooding down stream. It will be many years before we see those lands worked again.

The global out-look is not much better. Russia has experienced a similar situation. A severe, two year, drought has forced them to cease all exporting of wheat. Now, they merely hoping that they can fill their own domestic needs and even that doesn’t look promising.

In Africa, fields of wheat have been decimated due to a disease known as "Wheat Rust UG99". The bigger problem is that “Wheat Rust UG99” is now spreading to many other wheat producing countries and at an alarming rate.

There seems to be no solution to the ever shrinking supply of these two grains. The end result will mean much higher prices and smaller packages. Keep an eye out for the shrinking package. This seems to be the latest in marketing schemes. A manufacturer will raise the price a small amount while offering a smaller container or weight. What was $1.00 for 12 oz, is now $1.25 for 8 oz. Oddly enough, this seems to be working with many people, so I'm sure we'll see this as a growing trend. “Less for more”.

It's hard to imagine that two grains could cause so much trouble, but when we look at how they are used, we begin to discover our sometimes glutinous dependence on them. From cereals, breads, pasta to high fructose corn syrup in our soda and juice, plus the feed for our beef, pork and chicken…. everything is effected, including what we feed our cats and dogs.


Many have asked me "when they should begin using their stored, long-term, survival food." The answer can be found by walking down your grocer's isle. You start when you just can't take it any more. Bon Appetite