PRINTHigh checkout costs
Rising prices shoppers' bills
AP Exchange
Joe Francavilla, of Barre, Vt., talks about the rising costs of food that have forced him to change the way he feeds his family so he can afford his trips to the grocery store.
April 10, 2008 | 12:00 a.m. CST
Everything in your local grocery store might look the same as before. However, scanning the items reveals an important difference — rising prices. Many Americans are experiencing an added economic pressure due to the increased price of certain foods.
Kim Saracini, a Columbia resident, shops at Hy-Vee for her family of three and has noticed a change. “I used to be able to go to the store and spend $50,” Saracini says. “Now I can barely get by without spending at least $100.”
Why is food costing so much more? One of the main factors is the increasing production of biofuels. The U.S. government now pushes for farmers to plant crops that will be used for renewable resources. Therefore, there is less room in the fields for other crops that are not biofuel related. It’s the old Economy 101 lesson — less supply of a crop with a rising demand means higher prices.
The world’s three main grains — corn, rice and wheat — are suffering the most, especially wheat. Weather problems such as excessive drought and hurricanes have resulted in a weaker supply of wheat. Supply is so low, in fact, that the price of wheat rose to more than $20 a bushel at the beginning of March.
Local businesses are beginning to feel the weight of this new price. Bakeries are getting hit the hardest. When a staple of the business is flour, wheat that costs more than $20 a bushel will take its toll on the bottom line pretty quickly.
“I just ordered the rest of the flour I will need for the year,” says Annie Humphreys, the owner of Annie’s Breads, a local bakery. “And it cost me double (what) it did last year.”
As for the customers, Humphreys says she has not had enough time to figure out exactly what to do. “I expect people who realize what is happening to wheat will understand if I’m forced to increase prices,” she adds.
Back in the grocery store, Dillons spokesperson Sheila Lowrie believes there are a number of other factors that are running up the bill. “More customers are choosing to prepare meals at home instead of eating out,” Lowrie says. But with rising prices at the stores, this doesn’t really save families that much money compared to going out to a restaurant.
Bottom line — food is putting a larger dent in people’s wallets. In the end, some might have to choose between tightening either their belts or their budgets.
