Extreme weather and pressures means food price hikes on the way - experts warn

Tuesday, 31 July 2012
Sweden is generally a very expensive place to live, not to talk of the cost of eating. Food is already a very expensive object in Sweden but that is not enough. There is growing warnings of increased hikes in food prices in the coming months.

Food products and raw materials these days are not only produced for human dining, they are also used as various forms of raw materials especially in the energy and fuel production sector.

As poor weather has hit parts of the USA, Russia and China, which produce the world largest amount of grains such as corn, soy and wheat, it is expected that by late autumn there would be higher food prices, to rise by up to 4 percent. Meanwhile, the Swedish food companies continue to reduce their staff numbers - about thousands of jobs going down.

Authorities and analysts in the food businesses feel that if this rationalisation continues at the same pace through out the year, it is expected that more than 1100 employees will be given notices.

So far this year 1300 people of the approximately 56 000 people employed in food companies have been given notices and sent home. Also many food manufacturers have between 5 and 8 percent of their workers employed through temporary employment agencies.

Analysts in the food production sector are already area determining that again there is the drive of the sector into the extreme situation in the world market for food commodity, similar to situation in the 2007 - 2008 periods.

This summer's extreme drought and extreme wet around the world have means that crop productions have come under intense pressure. This has forced the spot prices for products such as corn and wheat to rise sharply in recent weeks, though a stronger dollar has offset some of the costs.

Swede's food consumption gave a slightly stronger sales volume in the first quarter of this year but the pace of Swedish food exports by the recent report of food businesses was down.
By Scancomark.se Team

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