FAO reports food price index up 1.2% in September
According to Miguel Patricio, CEO of Kraft Heinz, consumers need to be prepared for a sustainable increase in food prices.
Patricio said inflation is “across the board”, causing prices to rise in many countries. Food and Agriculture Organization (FAOThe United Nations reported a 1.2% increase in the Food Price Index in September compared to the same month last year.
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“We are raising prices around the world, where necessary,” Patricio said in an interview. BBC. He said a number of factors have driven “essential” growth in different countries.
“Especially in the UK, with a shortage of truckers,” Patricio explained. “In [the] US logistics costs have also increased significantly, and some sectors of the economy have labor shortages.”
Patricio’s reference to “US logistics costs” may refer to the record backlog of container ships waiting to enter the Port of Los Angeles. The port’s executive director, Jean Cerocca, claimed that around 250,000 containers are required to pass through the port by 6 October.
Patricio cited continued population growth as an important factor, as the land available to grow food remains the same, along with poor harvests in Brazil, drought in Russia and reserves in China.
“I think it’s up to us, and for the industry, and for other companies to try to mitigate these price increases,” Patricio said. “Whether it’s corn, sugar, coffee, soybeans, palm oil, you name it, all these basic food items are on the rise.”
Food producers have also devoted significant resources to developing new packaging to meet plastic waste reduction goals. Patricio said his company is “encouraging” customers to buy glass bottles, however, he admits they are less convenient.
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“We are working hard not only on plastic bottles, but on our footprints everywhere there is plastic,” Patricio said.