Consumers Can And Will Pay More For Food
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Food prices are set to rise again in the U.S. in 2007 after previous years of steady declines in food price.
Americans generally spend about 10% of their total income on food, and U.S. consumers have been enjoying a steady decline in food prices. However, food prices are set to rise as food manufacturers are increasingly passing on the costs of increasingly expensive agricultural commodities to consumers.
The price of agricultural commodities has risen sharply since August 2006, and are likely to continue to increase. U.S. consumers are therefore likely to pay more for food as manufacturers pass on the higher cost of these commodities to consumers. According to ConAgra, most U.S. consumers can afford to pay more for food, even if they do not have choice in the matter.
Citations:
Peter Shinn, Brownfield Ag News, 2008 United States (National)
