Tags: Breakfast | food | cost | bread

Want Breakfast? Dig Deeper Into Your Pockets

By    |   Wednesday, 09 July 2014 01:48 PM EDT

Being an early bird is getting more expensive, as consumers have to dig deeper in their wallets to cover the cost of breakfast.

Lately, there have been a lot of "freak events" that are driving the costs of popular breakfast items higher, says CNNMoney.

For instance, coffee prices increased earlier this year because of a drought in Brazil, the largest coffee producer. The Associated Press says analysts forecast Brazil's coffee crop could shrink by 20 percent this year.

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Bacon prices are on the rise because U.S. pig herds were hit with a diarrhea virus, known as porcine epidemic diarrhea, which killed a lot of piglets, the AP notes. Those losses come on top of the fact that higher feed costs had already prompted pig farmers to downsize their herds.

The orange juice industry is trying to manage the effects of bad weather and what could be Florida's worst orange harvest in a quarter of a decade, due in large part to the incurable citrus greening disease.

And the dairy market has become extremely competitive as suppliers struggle to meet the added demand of the growing middle classes in emerging nations, CNNMoney reports.

Fortunately, not all food prices will see sharp increases simultaneously, Annemarie Kuhns, an economist for the U.S. Department of Agriculture's Economic Research Service, argues.

"The fresh items that [people] would put in their breakfast will be increasing more than box-item cereals," she tells CNNMoney.

Processed foods, including bread, see less price variation and are easier to store for the long haul. That's good news for individuals who like to keep it simple, as bread is actually 1 percent cheaper than in 2009, according to CNNMoney.

But overall, most people can expect to see an increase in the cost of their basket of groceries.

The USDA forecasts an average 2.5 percent to 3 percent increase in food costs this year. But the actual increase could be higher depending on what consumers choose to eat, especially if they're fond of fresh foods.

And the increases will not be limited to breakfast items, but will also include meats, fish and other food, according to the AP.

Food companies realize volatile prices and sticker shock are bad for business, so they use a range of cost-cutting methods to shield consumers, the AP notes. Still, even with those measures, consumers will likely feel the "ripple effects" of rising commodity prices, the Grocery Manufacturers Association forewarned earlier this year.

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Being an early bird is getting more expensive, as consumers have to dig deeper in their wallets to cover the cost of breakfast.
Breakfast, food, cost, bread
426
2014-48-09
Wednesday, 09 July 2014 01:48 PM
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