Grocery prices rising, but by how much?
The co-CEO of Whole Foods estimates price increases of 2% this year and as much as 4% next year. He still calls the situation 'manageable.'
Walter Robb, the co-CEO of Whole Foods Market (WFM), said prices had actually been moving down before the drought hit. But now, as the nation's fields are getting destroyed by the heat, he sees prices rising 2% in the rest of 2012 and then 3% to 4% in 2013. His interview is in the following video.
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The drought isn't affecting Whole Foods' costs yet, Robb said. The company has good contracts in place now to insulate it from cost increases in the short term. But there's also a lag time of six to nine months between price increases at the farm and the impact at the consumer level.
"I think you're going to see a moving upward of inflation in 2013, although I think it's manageable at this point from everything I see," he told CNBC in an interview.
Whole Foods is still forging ahead with its expansion plans despite the food inflation. The company plans to open 28 to 32 new stores next year and 33 to 38 stores in 2014. "We're betting that demand for fresh, healthy foods is larger than this current economic cycle," he said.
The company said it's thriving and has created 7,000 jobs last year. It expects to create 8,000 jobs next year.
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Takes about 1 bushel of corn to produce 32 lbs of chicken or 1.75 lbs of corn per lb of chicken
If corn goes from $5 to $8 a bushel that means a price increase of corn goes from 9 cents a lb to 14 cents a lb ( 5 cent a lb increase in corn) for a NET price increase of about 9 cents a lb. for the chicken.
Wonder how that 9 cents a lb will be reflected a the grocery store.
You can count on three things.
First, the price gougers will be in full force.
Second, the media wil not analyze anything and blame the farmer.
Third, the AG organizations will never respond thus helping to screw corn producers even more
We have a economic disaater for a President. A VP that doesn't know who's on first and a Dem Senate that could care less about you and I
Of course food prices will continue to go up and so wiil all other commodoties if we don't get those fools out of office
Nore722-- there is less to go around, so those most willing/most able to pay for it will be the most likely to get it. There are already programs in place to assist the most vulnerable populations, and the rest of us "average Joes," well, we eat more spaghetti for a while, I guess...Price freezing will just mean that the first folks in line will bogart it all-- unless you bring back rationing. Is that what you're suggesting?
And out of curiosity, what do you consider a luxury? Many cultures (including our own) once considered meat a luxury. Should we tax the meat we're price freezing?
Our Gov. is more worried about other countries than its own,people die every day because of our lame Governments.
seems like theres always some excuse to keep raising prices...if its not gas its cigarettes..if not cigarettes its booze...if not booze its food...its either a hurricane or a oil spill or a drout or some **** got a hangnail...when is it ever going to stop...the working class can only afford so much...pretty soon the goverment will take our entire paycheck and give us a weekly allowance just like good old dad did when we were kids...bill gates keeps coming up with yet another versioon of windows..more money...he isn't rich enough yet...warren buffet controls most of the food industry...he isn't rich enough yet...walmart put mom and pop out of business...they aren't rich enough yet and it goes on and on...it disgusts me when I see tv propoganda about the poor hungry kids in africa and how only 35 cents a day will feed one...if 35 cents a day will care for a child over there why can't the same 35 cents care for a child over here who needs it just as much...the bible says clearly that charity begins at home...but not in this country...theres no charity here from our rich ones..they take care of each other at the cost of the working man's sweat and toil and keep raising the prices on everything...god forbid they should dig a little into their profits but its okay for us to dig into our piggy banks to keep them rich...ONLY IN AMERICA...!!!
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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