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August 01, 2021

Are you prepared for rising food prices?

If you think it's hot and dry here, have a look across the border.

AdAs the U.S. struggles with the worst drought it’s seen in nearly 50 years, food prices are bound to rise. Meat and milk will become more expensive as feed prices continue to jump.  

USDA figures released last week suggest that the largest percentage increase in the next year will be for beef. Dairy products, eggs, and pork are all expected to rise as well unless crops get some much-needed relief. 

And while Canada's supply management system works differently than U.S. agribusiness, we're certainly not immune. Eastern farmers have been watching crops shrivel for weeks now, with little relief in sight.

During the last major drought four years ago, a sharp jump in food prices caused riots in some countries and raised questions about the use of crops to make biofuels. That's not likely to happen here, of course, but the ripple effect is very real, even though it may take a few months to kick in.

According to earnings reports from grocery retailers, consumers are fairly adept at changing consumption patterns. Are you one of them?

What will you do if food prices rise? Eat a little bit less? Cut back on meat? Buy more fish?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...