Global food chain stretched to the limit
Soaring prices spark fears of social unrest in developing world
By John W. Schoen Senior producerStrained by rising demand and battered by bad weather, the global food supply chain is stretched to the limit, sending prices soaring and sparking concerns about a repeat of food riots last seen three years ago. Read more.Not to sound like a broken record here folks but what happens around the world affects you here at home as well, so when you see enough articles stating that we might have a problem with food production it might be worth looking into. As many of you know and for those of you who don't know what you see on the store shelves is all that there is in the store, they do not have a back room storehouse anymore (JIT) Just in Time inventory is supposed to raise profit margin and it works in normal times but when that bad snowstorm or tornado decides to come knocking those shelves go bare pretty quick. Take into account now also that stores are keeping on hand even less right now, look at how deep a product is in the shelf, I have some reports that some product may only be one row deep.
With stores cutting back on their inventory it creates a potential for a lot of people to be upset when said natural disaster comes knocking, Don't think that this can't happen here because it does, store shelves are depleted during every single weather event that is perceived to not be the norm. One other example to consider also is that with food prices already high most people are cutting back on what they have in the home, that is one of the worst things you can possibly do as it makes you more reliant on what the market may or may not have. If there was ever a time to stock up on food now is it and by doing so you can actually save yourself some money, how you ask, that's simple. By buying a little extra right now you buy at a lower cost and if you buy foods that have any kind of a storage life they will not go bad. Think of it this way you know that food prices keep going up so if you can buy a product not that will store for a while then you win because you will not pay that higher price later on and it also gives you the luxury of waiting for possible sales to come along and buy during that time and not when they are at full price. Think smart shopping.
Prepology
7 comments:
Scott,
We are screwed, have you seen the reports on Moutain House, they are empty no more food, some are saying the feds purchased all of it.
http://www.istockanalyst.com/article/viewarticle/articleid/4735570
look at the date of the article.
Bill, morning and thanks for stopping by. I did get the news blurb about MN a little while ago and it would not surprise me in the least bit that it is the Government buying up some of the supply as they have done it before with certain supplies. I checked out the link and it fits with about when I saw the article, business must really be booming with all the attention given to food storage lately, I still get daily hits on the Glenn Beck article I had on the food storage article program. It's going to be an interesting food year that's for sure.
Here is a recent post from a financial blog on the subject with a lot of links:
http://www.nakedcapitalism.com/2011/01/la-nina-as-black-swan-%e2%80%93-energy-food-prices-and-chinese-economy-among-likely-casualites-2.html
Russell1200 thanks for the link I will check it out. Thanks for stopping by also.
I have also noticed while doing our shopping how there are fewer competing products. Sometimes there is only one choice for a given item!
Rick, I have noticed that as well and under closer inspection I am finding that it is usually a foreign product and to me that is a very dangerous precedent to follow, I hate to rely on just one option as it makes it too easy to pull the carpet out from underneath you when you least expect it so to speak.
Rick thanks for stopping by.
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