by Tyler Durden
After decades of low inflation and relatively cheap food prices, those days emerged with soaring food price inflation around the world. The latest note is that food prices are out of control in Australia.
Australian livestock futures rose to record highs as farm operators prevent livestock from slaughterhouses to rebuild herds after years of drought that forced many livestock operators to cull the herds. Supply disruptions pushed the benchmark Eastern Young Cattle index to A$10,082 ($7.26) per kilogram. From the 2020 low, prices have doubled in one year.
10.082 Australian dollars (7.26 US dollars) per kilogram is the highest price paid to 1997 when contracts began to be traded. Bloomberg He notes that higher prices “have increased the risk of the country’s steaks slipping off global menus – while global demand for beef is strong in many markets”.
Higher prices may mean that the country’s beef producers, which are second in the world after Brazil, may lose this place as exports decline. This means that global Australian importers will go elsewhere to get cheaper meat. In the first six months, beef exports fell 24% compared to the same period last year.
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Higher beef prices mean lower exports as global importers look elsewhere for affordable meat. Reminder, exports have been reversed on the chart below.
The fact that food prices continue to rise Undermining the narrative of transient inflation That the Fed and the mainstream media have been brainwashing everyone for nearly a year.
In the United States, the main meat producer is Tyson Foods Inc. warned In their recent conference call with investors that higher costs are hitting the company faster than the company can raise prices, retail prices are set to rise on Sept.
The inflation shock is underway as food price inflation has reached record levels. And Supermarket prices are expected to rise by 10-14% later this fall.
Food inflation has become like Problem For poor and unemployed workers, the Biden administration has raised food stamp benefits.
Get used to rising food prices. It looks like they will last until at least 2022.