Danielle Brown of Chicago has a one-year-old and a three-year-old. With food prices rising quickly, she is one of many people whose food stamps don't go as far as they used to.
"The consumer price index for food rose 5 percent last year, the highest gain in nearly two decades. It is especially grim news for the poor," according to the Associated Press.
"'Ain't got no food left, the kids are probably hungry,' said Brown, a 23-year-old single mother who relies heavily on her $312 monthly allotment of food stamps — a ration adjusted just once a year, in October," according to the AP.
26.1 million people received food stamps as of February 2007; by February of this year, that number had increased to 27.7 million. The Agriculture Department predicts that the number will reach 28 million by next year.
"For Lynda Wheeler, who receives $281 in food stamps each month, the rhythm of life has been one of shopping for food, running out of food and then turning to churches, food pantries and friends for help. And all the while, she is doing things like cutting milk with water to make it last a bit longer," according to the AP. Wheeler has a two-year-old daughter and a 14-year-old son.
But food banks such as the one Wheeler visits are feeling squeeze by increased costs, too, and many have had to give less food out to individual families. "Higher fuel costs and commodity prices have sliced into private donations" to food banks, according to the AP. For more on how the increasing cost of food has been affecting food banks, see Rising Food Costs Lead More People To Food Banks.
"Between March 2007 and this year, a gallon of milk jumped from just over $3 a gallon to nearly $3.80, according to the Bureau of Labor Statistics. During the same period, eggs climbed from about $1.60 a dozen to $2.20. Bread, chicken and tomatoes are all more expensive than last year," according to the AP.
Many food stamp recipients are purchasing "soda pop, bags of cookies and chips—much of it cheaper than healthier food," according to the AP. They "are doing what they can to stretch their shrinking buying power."
For more on rising food costs, see Global Food Prices Up 40 Percent Since Mid-2007.
Labels: Economy, Food
In my
previous post on rising food prices, I noted that more and more people were using food banks as a result of the skyrocketing costs.
Food prices have increased 40 percent globally since mid-2007, according to the Associated Press.
But the crisis of rising food prices is so dire in Haiti that it has led to riots. "Haitian lawmakers fired Prime Minister Jacques Edouard Alexis over the rioting," according to the AP.
In response, the United Nations will distribute 8,000 tons of food, along with other help, to Haiti. "Food provided by the World Food Program will focus on children, pregnant women and nursing mothers in the north, west and central regions of Haiti, the poorest nation in the Western Hemisphere," according to the AP.
Once again, I am encouraging readers to make a donation, large or small, to a food bank near them. I purchased staples such as cereal, peanut butter, beans, soups, pasta, rice and macaroni and cheese (okay, okay, macaroni and cheese is not a staple--nor is it particularly healthy--but it is easy, quick and delicious) and took them to a public drop-off point for Northwest Harvest, Washington State's hunger relief agency, which provides 18 million pounds of food to more than 300 food banks annually. It didn't cost me a lot of time or a lot of money, and my small donation will help free someone from deciding whether to buy groceries or their prescription medication.
Labels: Economy, Food
Food prices are rising across the board these days. Over in InvestorCentric, Eric wrote earlier about the rising price of corn, which recently surpassed $6 per bushel--a record. But it's not just the price of corn that's going up: Food prices are rising across the board and around the globe.
"Cost increases are affecting most countries around the globe, with prices for dairy products up 80 percent, cooking oils up 50 percent, and grains up 42 percent from 2006 to 2007," according to Slate.
"At $1.32, the average price of a loaf of bread has increased 32 percent since January 2005. In the last year alone, the average price of carton of eggs has increased almost 50 percent," according to a recent MSNBC article.
"Ground beef, milk, chicken, apples, tomatoes, lettuce, coffee and orange juice are among the staples that cost more these days, according to the federal Bureau of Labor Statistics," the MSNBC article said.
"A 12-ounce can of frozen, concentrated orange juice now averages $2.53 — a 67-cent increase in just two years," according to the article. "And a carton of grade A, large eggs will set you back $2.17. That's an increase of nearly $1 since February 2006."
What's behind the huge food price increases?
The rising energy costs taking bigger chunks out of consumers' wallets are one culprit. Rising energy costs are contributing to a secondary cause of the price increases: Increased interest in biofuels, such as corn-based ethanol.
"In 2006, 14 percent of the total corn crop in the United States was converted into ethanol; by 2010, that figure will rise to 30 percent. When the production of corn intended for human or animal consumption decreases, prices go up," according to Slate.
Finally, weather is an issue. Inclement weather has negatively affected the Corn Belt and Australia has experienced a draught while Argentina has experienced flooding. These weather conditions have all decreased harvests and exports.
The rising prices are leading to another increase: An increase in the number of people going to food banks.
"Nationwide, a family of four on a moderate-cost shopping plan now spends an average of $904 each month for groceries, an $80 increase from two years ago, according to the USDA," according to the MSNBC article.
"America's Harvest, which distributes nearly 2 billion pounds of food and grocery products each year to more than 200 food banks across the country, estimates that its overall client load increased by 20 percent in the fourth quarter of 2007," according to the article.
With costs of necessities rapidly increasing, times are tough for a lot of people. So I encourage everyone who can spare a little--investors, I'm talking to you--to make a donation to their local food bank.
Next week, I will set aside the money I usually spend on my daily Grande soy blueberry misto, no water, poured over lots of ice (yes, I have seen When Harry Met Sally, and no, I am not quite as picky as Sally) and instead, buy food to donate to a local food bank.
If you make a donation, large or small, I'd love to hear about it!
Labels: Economy, Food
