Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Amid coronavirus, U.S. food prices see historic jump - and are likely to stay high

Amid coronavirus, U.S. food prices see historic jump - and are likely to stay high

As if trips to the grocery store weren’t nerve-wracking enough, U.S. shoppers lately have seen the costs of meat, eggs and even potatoes soar as the coronavirus has disrupted processing plants and distribution networks.
The coronavirus pandemic has sent food prices soaring in the United States.

Overall, the cost of food bought to eat at home skyrocketed by the most in 46 years, and analysts caution that meat prices in particular could remain high as slaughterhouses struggle to maintain production levels while implementing procedures intended to keep workers healthy.

While price spikes for staples such as eggs and flour have eased as consumer demand has leveled off, prices remain volatile for carrots, potatoes and other produce because of transportation issues and the health of workers who pick crops and work in processing plants.

In short, supermarket customers and restaurant owners shouldn't expect prices to drop anytime soon.

“Our biggest concern is long-term food costs. I believe they will continue to go up,” said Julie Kalambokidis, co-owner of Adriano’s Brick Oven, a restaurant in Glenwood, Iowa.

Tamra Kennedy, who owns nine Mexican-inspired fast food franchises in Iowa and Minnesota, joined Kalambokidis on a call set up by Iowa U.S. Rep. Cindy Axne and said sometimes even getting essential ingredients is difficult.

“You can pick an ingredient and I can tell you there are shortages,” she said.

Big fluctuations in food prices began in March, when the coronavirus pandemic began to sink in for U.S. consumers.
The Labor Department reports that the 2.6% jump in April food prices was the largest monthly increase in 46 years. Prices for meats, poultry, fish and eggs increased the most, rising 4.3%. Although the 2.9% jump in cereals and bakery products wasn't as steep, it was still the largest increase the agency has recorded.

Dairy and related products, and fruits and vegetables increased by 1.5 percent in April.

Egg prices also reached an all-time record of more than $3 a dozen in late March, but they have since fallen to less than $1 a dozen.
The situation has been worse for meat prices, largely because of illnesses among slaughterhouse workers. The outbreaks struck pork processing plants the hardest, but beef and chicken processors also saw some impact as thousands of workers tested positive for the virus and the United Food and Commercial Workers union said at least 44 workers had died of COVID-19 as of Friday.

April retail prices for boneless pork chops and ham were nearly 6% higher than in March and retail prices for hamburger and sirloin steak were about 4% higher, the U.S. Department of Agriculture reported. The price of whole fresh chickens rose by more than 12%.

After numerous closures, most pork plants have reopened but often not at full capacity, forcing pig farmers to euthanize animals that couldn't be processed.

“There are biological constraints to this and that’s why I would anticipate prices to stay high at least for some period of time,” said Trey Malone, an agriculture economist and professor at Michigan State University. “If you’re going to euthanize thousands of animals and it takes six months to raise a new one, obviously there’s going to be some type of delay or buffer in the supply chain.”

By mid-May, beef and pork slaughterhouses were operating at about 60% capacity, though that figure has since climbed to nearly 90%, said Jayson Lusk, an economist at Purdue University. Although Lusk was optimistic that the worst of the meat supply crunch is over, he said it's always possible that a second wave of illness could cause the situation to worsen.

Some grocery price jumps were because of people stocking up when the coronavirus first arrived. But even as some prices have dropped, the cost of produce such as potatoes, onions and carrots has remained above last year's prices.

Much of the increase appears to be because more people are cooking at home.

For garlic, most of which is imported from China, a 278% price increase from a year ago is largely due to a sluggish supply chain in China.

Jeff Dunn, CEO of Bolthouse Farms, a major provider of carrots and distributor of salad dressings and fruit and vegetable-based beverages, said he doesn't anticipate new supply problems. But he noted that some of his company's workers in distribution and field work have become sick, and that there is an additional cost to implement and maintain procedures intended to keep workers safe.

Someone has to pick up those costs, he said.

“There is real cost being built across every supply chain. Not just with us but with the retailer in terms of incremental cost associated with COVID,” Dunn said. “At some point, if you want any chance to hold up any kind of margin, those costs are going to have to be passed on or somehow recognized by the government with some help.”

Given that the percentage of Americans' paychecks that go toward food has declined over the past 50 years, many people likely can handle the recent price increases. But the coronavirus also has pushed roughly 41 million Americans out of work, and for them, even a small price hike can be troubling.

"We've obviously seen this record increase in unemployment filings, and so there are more people who are at risk in that sense that they literally don't have any employment to secure the money that they would need to buy the food that they traditionally purchase," Malone said. "For the people who are already operating on the margins, these price increases are nontrivial."

It's also a tough time for livestock farmers, who had hoped that after some down years, they would benefit from new trade deals and a strong domestic economy.

“Farmers thought they saw the light at the end of tunnel,” Lusk said. “It turns out that it was the headlight of a train.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×