Why Are Food Prices Going Up, And How You Can Save Money?

The societal effects of the COVID-19 pandemic continue to be felt well into 2021. A year and half later the negative impact on our society at large,as well as individuals and families remain profound. Sadly, these impacts do not appear to be easing, at least any time in the near future. Consumers AND businesses are experiencing a surge in food prices- this – by virtue of the dramatic employee and product shortfalls due to reduced labor market – makes life even more difficult (and costly) for food insecure families. The big question everyone has is, “why are food prices going up?” Here are some answers below:

According to NBC News, prices hiked for the third straight month in June 2021, jumping a relatively significant 5.4% in costs.  These price increases are causing noticeable repercussions throughout the country, as certain consumers are faced with rising food insecurity and some businesses are unable to properly stock their shelves due to the food shortages being felt across the entire food supply chain. Feeding America projects that 42 million people (1 in 8), including 13 million children (1 in 6), may experience food insecurity in 2021. … Many people who have been most impacted by the pandemic were food insecure or at risk of food insecurity before COVID-19 and are facing greater hardship since COVID-19.Long lines of cars filled with hungry American Families waiting for food products from the Farmers to Families Food program PLUS the images of farmers destroying crops and overturning milk into the maw of sewer drains due to the inability to get these items to market are indelible images etched into our collective consciousness.

4 Causes Of High Food Prices

The Food and Agriculture Organization’s food price index rose to its highest level in a decade in May. This index tracks meat, dairy, vegetable oils, basket of grains, and sugar. The particular causes of high food prices this year can mostly be attributed to normal, yearly inflation, the inflation and personnel shortages as a result of the pandemic, and shifts in demand.

1. Food Production

One major reason why food prices are going up is because food production came to a screeching halt during the pandemic. Food production facilities usually are crowded, so many plants had to shut down because of COVID-19 outbreaks. This trend continues.

The U.S. Bureau of Labor Statistics noted, based on data from June 2020 to June 2021, noted that five foods will increase over the summer. Consumers will see up to a 15.6% increase for bacon, up to an 11.2% increase for whole milk, up to 5.7% for eggs, up to a 1.9% increase for ground coffee, and up to a 1.2% increase for bananas.

2. Food Transportation

In 2020, the United Nations shared that international food shipping dropped for the first time in 11 years. The United States heavily depends on food shipping to keep stores stocked, with roughly 15% of the country’s food supply coming in from other countries. Also contributing to a decrease in food transportation is rising oil and gas costs.

3. Home Cooking

As more individuals are working and studying remotely, having all three meals at home caused an explosive increase in food demand. Americans actually bought more food during the pandemic, some admitting to stockpiling for “just-in-case scenarios”.

4. The Weather

When extreme weather hits, food costs get disrupted. For example, due to the snow storm in Texas that lasted four days, dairies had to dump 14 million gallons of milk. All of these increasing food prices are causing consumers to shell out more money each month just to put food on the table.

How To Save On Food Costs

Marvell Foods is food trading company that specializes in brokering discontinued, out-of-date, unsold, and overstock food items. We offer huge savings to our network across the nation. We aim to reduce food waste, put near-expired, or expired food for sale (all of which is entirely wholesome AND safe to consume) to good use. Our unparalleled national network of food manufacturers, suppliers and distributors provides Marvell Foods with access to food products at the lowest prices that can be found anywhere in the country.

Marvell Foods is a family-owned, multi-generation, nationally recognized business that has a pulse on the national food market and an ability to source food at significantly lower costs than is commonly found across all sectors of the food industry. We buy and sell a variety of food products—including food products affected by inflation—such as chicken, beef, pork, dairy, baked goods, shelf-stable grocery items, and more.

Whether you are a manufacturer, supplier, processor, packer, co-packer, if you are sitting on any near-expired, close-coded, or even expired food inventory Marvell Foods is a buyer. If you are a buyer of ANY food products, you can rely on Marvell Foods to source almost ANY FOOD PRODUCT for your company at prices you’d be hard to find yourself. During these Covid days, saving a few pennies here and a few pennies there on truck loads of food can make the difference between a healthier bottom line during lean times, help keep your business open and provide your customers with lower priced food products.

For more information about how Marvell Foods can help you save on food costs, browse our website or contact a team member today.

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