Your Groceries Are About To Get Even More Expensive
Jun 16, 2023
If you think the cost of groceries is already out of control, prepare to pay even more in the coming months. Almost everything that contributes to your food budget is rising in price, including entire food categories, packaging, and transportation. This raises the cost of putting food on the table every day, let alone hosting festive gatherings during the holidays.
The five key factors listed below are putting pressure on grocery supply chains and, as a result, driving up the cost of your weekly food shopping.
The Russia-Ukraine Conflict
The conflict between Russia and Ukraine has caused massive supply chain disruptions worldwide. The countries account for 29% of the world’s wheat supply and 80% of the world’s sunflower oil supply. Ukraine is also the third-largest grain producer and the fourth-largest corn exporter.
Shortage of Food Truck Drivers
Food truck driver shortages have resulted in shipping delays, resulting in spoilage and waste that costs the supplier and leaves fewer consumable products for grocery store shoppers.
Lack of Manpower
Due to a number of factors, manufacturers in various industries are struggling to find employees. For starters, many workers are taking advantage of the increased unemployment benefits and stimulus payments that are currently available. Others are simply put off by the prospect of in-person work in a world dominated by remote work.
Unpredictable weather and environmental concerns also have an impact on production lines. According to reports, the past year has seen more frequent weather anomalies: agricultural production has been negatively impacted by rampant wildfires; grain harvests have faced challenges from both unpredictable drought and excessive wet weather during the growing season; and coffee bean yield has fallen to a low due to a lack of rainfall in South America. The consequences of this are a terrifying problem for both suppliers and consumers.
Prices for fundamental raw food materials have also risen as the supply of plastic, paper, glass, aluminium, and CO2 struggles to keep up with demand. One strain on aluminium’s supply chain was the surge in popularity of hard seltzers during the pandemic lockdown, with many people opting for alcoholic beverages at home rather than dining out.