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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
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
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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