By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Super Value’s president yesterday warned Bahamians to brace for an overall 6 per cent increase in food prices, with corn costs set to send beef and milk “through the roof”.
Rupert Roberts said consumers could soon feel the impact of higher prices due to the severe drought which has hit the US, telling Tribune Business: “We’re not looking forward to any prices increases but we know they’re coming.”
Corn prices in the US have spiked roughly 30 per cent due to one of the most severe droughts in the midwest in decades. The increased price of corn will ultimately mean price increases for other food products including beef, dairy and poultry, with Bahamian consumers to eventually feel the pinch.
Mr Roberts noted that corn is used in the production a vast range of food products, being a key staple for livestock. While he has not seen a jump in food prices due to the US drought as yet, he anticipated that it would come eventually, with the Bahamas relying heavily on food imports from its northern neighbour.
“From what I am hearing corn is going up about 30 per cent, and that would affect the overall pricing about 6 per cent,” Mr Roberts told Tribune Business.
“I guess beef and milk will go through the roof. Dairy and beef, and anything related to corn, corn products and feed, will take a hit eventually, though we haven’t seen anything yet.”
Mr Roberts adde4d: “We’re not looking forward to any price increase, but we know they are coming. I did note that dairy products are expected to take a jump. Beef and dairy products will go up eventually. You would be surprised how many corn-based products there are. Most of the snack foods are corn-based. With the exception of potato chips, all rest are made from corn.
“There’s always something affecting something else in this business. Fuel affects transportation costs, the cold affects the fruits and vegetables, droughts like we see now can cause price increases. Weather plays a big part in the food business.”
Comments
BaystreetTrader 12 years, 4 months ago
To the author of the article, I respectful recommend that in future articles that an attempt be made to substantiate the claims made by the individuals that are quoted within an article. Mr. Roberts stated, " “From what I am hearing corn is going up about 30 per cent", it is relatively easy for you to go to CBOT website (the futures exchange where corn is traded) and provided a month-over-month data. For example. Corn Dec contract has increased from approximately $5.50 per bushel of unit (bu) in June to over $8/bu for July. This information can be obtained from a Bloomberg terminal that the Tribune should have access to. If not, use the partnership with the Nassau Guardian and request the information from CFAL. Just a suggestion.
MartGM 12 years, 4 months ago
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concernedcitizen 12 years, 4 months ago
i think mr Roberts meant over a period of time ,and i,m not sure about you but Jr Roberts is a lot better businessman than me ,
bigdee 12 years, 4 months ago
i think supervalue is have a great prices now i love their service i love their specials go mr.roberts you doing a great job with your stores
peters 11 years ago
Governments across the world have been warned that the expected explosion in the global population and a worldwide shift towards eating more meat and dairy produce are likely to cause significant problems.
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jj 12 years, 4 months ago
This is what happens when you decide to take food (corn) and use it as fuel (ethanol) instead of FOOD.
MartGM 12 years, 4 months ago
No, this is what happens when the US and other parts of the world like the Black Sea Basin experience a Drought. This is also what happens when stockpiles of corn or even soybean are at low levels. Don't forget, conventional gasoline has about 10% ethanol. If you drive a car, you're probably contributing to ethanol use.
concernedcitizen 12 years, 4 months ago
good one ,they won,t drill for oil thats there because of the treehuggers ,but they will try to make food into fuel ,go figure
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