According to the Department of Labor Consumer Price Index, the food index rose at a 5.3 percent SAAR in the first quarter of 2008, following a 4.9 percent increase in all of 2007. The index for grocery store food prices increased at a 5.9 percent annual rate, reflecting increases in each of the six major groups ranging from annual rates of 0.7 percent in the index for dairy products to 15.7 percent in the index for cereal and bakery products.
Prospects for any relief, any time soon does not look positive. Headlines continue to forcast tight supplies, and high demand.
The global food crisis intensified as Kazakhstan, one of the world’s biggest wheat exporters halted foreign sales and rice prices shot to a record high after Indonesia stopped its farmers from selling the grain abroad. said a report in The Financial Times on Thursday.
Rising rice prices have triggered riots in the past month in countries such as Haiti, Bangladesh and Ivory Coast. Rice is considered the most political agricultural commodity as it is a staple for about 3bn people in poor countries in Asia and Africa.
Facing these realities it is more important than ever to watch, menu pricing, waste, portions, and percieved value items in our operations.
Other than attending the Spring 2008 US Foodservice Foodshow this week and sampling 4000 new products, (including 600 square feet of green,sustainable products)Peninsula Foodnews will be posting ideas to maximize profits in these recessionary times.
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