What is happening in the cattle market is directly affecting food prices at your local supermarket. Here are some upsetting numbers.
- Global meat prices have hit a 20-year high.
- The UN Food & Agriculture Organization's index was the highest in August since 1990.
- Live cattle futures hit $1 per pound, the highest in 22 months.
- Australian lamb prices have risen above $5.50 a kilo, the highest since 1973-74.
- And this is the big whopper: Pork bellies, which are used for bacon, are at a record $1.50 per pound.
- The higher cost of feed is driving up prices.
Demand for a more protein diet is coming from countries like China and Brazil. Increased demand is creating higher prices and food inflation.
Of course none of this increase will be reflected in government figures. The government conveniently omits food and energy from its core inflation index. The reason for this is simple. Social Security payments are tied to the cost of living. So to keep Social Security payments low for retired Americans, the government decided to invent a new index, namely the core index, and omit food and energy.
So now, finally, Ben Bernanke has what he has been praying for: more inflation. And the inflation will be hidden in the government's core index. So now the Fed can be happy and content.
Unfortunately, Americans will be paying higher prices for meat products.
$600 Million Powerball: 1 Winning Ticket Sold in Fla.
Don't Worry About Today's Retirees: Boomers Are Fine, (but Gen X…


Reader Comments (Page 1 of 2)
9-05-2010 @ 4:12PM
johnsonjbrown said...
There is only one reason food prices are going up and it's sitting in the white house.
You can not hand out money and not expect inflation.
Wait until Obama raises taxes on EVERYONE, I wonder how happy that will make Ben Bernanke?
9-05-2010 @ 5:06PM
Steve said...
Everyone is forgetting the Federal government is paying farmers to NOT increase the amount of cattle they raise.
And the farmers are being well paid!
Increase the amount of cattle, cut back on exports of corn so the cattle have more feed (even though the cows three stomachs were meant for grass) and this ridiculous situation would be solved.
I noticed the other day at Kroger, Healthy Choice frozen dinners went up from $2.50 to $2.75.
9-05-2010 @ 5:07PM
al schrader said...
I've been working on a number of new technologies that will make food less expensive. One is a legume plant that makes nitrogen fertilizer out of thin air. Another is a new robotic tractor that plows, fertilizes, and plants the seed all in one pass. The new hybrid corn seeds get better every year with more & more per acre bushel yields.
And this is just the start. One point though. Try not to over indulge ...Al-
9-05-2010 @ 5:28PM
Terry said...
The United Nations absolutely should have nothing to do with the United States it is a Marxist organization trying to rule the world.. We can raise all the food that we need here in the united states, and at a very economical price.just get BIG Marxist Government out of our Lives, and we will have plenty food for our people. To hell with the World Government! we should think about our own country. 100.00 Oil? 100.00 A Bushel Wheat For them . Fair is Fair!!!!
9-06-2010 @ 6:36PM
wallick59 said...
There is no program that pays farmers not to raise cattle. I am a farmer. I raise grain and cattle. There are no programs that pays farmers not to raise crops except the crp or wetland programs, which set aside highly sensitive lands or wetlands. These lands have to meet certain criteria to enroll. The reason prices are going up is due to supply and demand. We are in a world economy now, and factorsaround the world influence prices here as well as overseas. Farmers have endured higher costs of production but the prices we received have stayed at or just above breakeven prices. Which is one reason so many farms have gone under. We must be able to realize a profit just like any other business.
9-05-2010 @ 6:02PM
Harry Hurt said...
It is just like a bunch of Marxists to falsify inflation figures in order to renege on Social Security cost-of-living increases. They lend OUR money to college kids who don't pay it back, social programs that SS was never intended for, and we retirees get f**ked. We need a regime change ASAP.
P.S.-I thought a cow had FOUR stomachs.
9-05-2010 @ 6:33PM
Mark said...
Get ready to start getting your food from China. They don't waste corn on ethanol and soybeans on biodiesel consequently increasing production costs. They also on a government level screw the brains out of their farmers and other industries like these neosocialists that we've had running this country for the last 20 years
9-05-2010 @ 6:59PM
dickn2000b said...
Hey folks, we needn't worry. al schrader is going to solve all our problems single-handedy. I'll even bet ol' al voted for Obama.
9-05-2010 @ 7:05PM
dj said...
So that is how the bastards in dc are stopping seniors from getting cost of living increases for social security. Somebody ought to take them out behind the woodshed and paddle their a$$es till they can't ever sit down again. Thank you b.o. you total weasel.
9-05-2010 @ 7:07PM
mladow said...
Harry Hurt...wow have you missed the boat on what's been happening. Seniors have been screwing this country for years and years. They are taking out a ton more SS than they ever put in, get healthcare at a fraction of the cost...get Cost of living adjustments every year to their SS benefit (no other program in the USA gets this automatically). The Senior voter has been voting in the same group of criminals for 40 years and has let the government borrow in deficit for 40 years. You had better take responsibility for what has been happening because it is your generation that has put us in the predicament we are in. Stop bitching it's your deal!
9-05-2010 @ 7:25PM
mladow said...
Harry...you are right that cows have 4 stomachs, but you are wrong about student loans. The "kids" are the future and are paying your SS benefits without the possiblity of ever receiving the same benefits for themselves later on. The point is that Seniors are the most influential voters in the US. The seniors hold most of the cards to what has happened politically, economically and socially for a very long time...And frankly, your group should be ashamed of the mess you've left the next generation in. BTW...college for you was nearly free compared to today's costs.
9-05-2010 @ 7:42PM
Gmydogbud said...
Prices going up - how can that be when the Congress has said the COST of LIVING, has not gone up and that there will be no COLA for those on Social Security in 2011! Does YOU LIE, answer the question?
9-05-2010 @ 8:33PM
crabby said...
Can food prices get that much higher? Come on I live in Calif. right in the middle of the agricultural "belt".But when I went into S Mart the other day they had jacked the price of tomatoes up to $3.99 lb. Onions $3.00 lb.Ground beef $4.50 lb.A loaf of bread is $3 or $4. I have a nice little retirement income that I worked VERY hard to build. I have learned that I can drive to the 99 Cents Only store and purchase 5 lb bags of Yukon Gold potaoes...2 or 3 lbs of bananas..3 lb bags of onions..trays of green red or yellow pappers...cherry tomato...regular tomatoe..trays of zucchini...celery...broccoli,etc. All for 99 cents each!!!! Yes the store is a "ghetto experience" with LOTS of low lifes in there BUT I am not proud when it comes to getting the most bang for my buck.Then I shop the sales at Safeway...S Mart,etc. Fortunately I know how to cook well and I want to eat well BUT I have to devote time..energy etc. in order to get the job done. I feel bad for the people who posted on here about not recieving their COLA from SS this year.That is just wrong considering the hundreds of billions of dollars of taxpayer money that was handed to those filthy swindlers by Obama and his administration.Bastard could have left some money to give to those on SS foe their COLA.
9-05-2010 @ 8:43PM
htcorner23 said...
The article doesn't mention that beef prices are higher due to higher corn prices, and those are higher due to more emphasis on biofuels. When food prices go up, thank an enviro-wacko.
9-05-2010 @ 8:49PM
escort6768 said...
Mark: The grain used in ethanol is nothing when compared to the grain used in beer.
9-05-2010 @ 9:10PM
sweets3940 said...
Please when the gas prices rose so did food prices but when gas prices went down the food prices remained high. When a storm comes prices go up but when food is plentiful food prices remain high. When are people going to realize that this is just a scam. We need food to survive so they can name their price and we have to pay it.
9-05-2010 @ 9:21PM
jdog2846 said...
our government and laws have been whack for the past 50 years. the partys arent split like they used to be. the chicken you ate 50 years ago isn't the same chicken your eatting today. plus cows where never suppose to be raised on corn... corns just cheaper and well not the same corn you ate 50 years ago.
9-05-2010 @ 10:38PM
seniorark said...
Adjustments to Social Security are based on the CPI-W which DOES NOT EXCLUDE food and energy costs. Please correct this error. Robert Fassbach, editor SeniorArk.com
9-05-2010 @ 9:55PM
james russell said...
I understand your anger at the food market prices. We get our food in a feed lot where the cattle or pigs or sheep are fattened up on corn and medical technology. Our chickens are grown in barns where 5% die before processing due to the amount of chicken droppings that accumulate on the floors and feeding areas. How much did eggs go up when the two farms failed to take care of the safety of the chickens producing the eggs? Almost 70 cents per dozen in a week. cron is not cheap because the government gives farmers (large farm combine/companies) money not to grow corn or wheat or any grain so that the prices don't drop. Government buys the surplus and stores it to allow the price to remain stable. Maybe they could use that to send to Darfur or Begladesh or African countries where people are starving but the farmers get first sale to relief groups and the grain sits in a dark building. The reason many people are fat is that we have been allowed to gourge ourselves on fast food, highly processed food and we the people allow that to happen because some of us are to stupid to care or wish things to change. What is going to happen when the government get green energy working for us and doesn't need the surpluses anymore. The corporate Farms will lose money and food prices will drop and stablize. ANyone on this remembers when gasoline was $0.45 a gallon? anyone remember when it was $0.23 a gallon? bread was 15 cents a loaf and a gallon of milk was 75 cents delivered cold in a glass container. Index that to present day and you find nothing very different. 1966 Chevrolet Impala was $3,200.00 and an airline line ticket to LA from El Paso was $60.00 both ways. The government needs to stop paying the farmers not to grow food.
9-05-2010 @ 10:06PM
GIlly said...
Boycot the meat dept for a week and watch it fall