Article: Drought should have little effect on packaged foods, says analyst. (Mary Lynn Harden, Duff & Phelps Inc.)

DROUGHT SHOULD HAVE LITTLE EFFECT ON PACKAGED FOODS, SAYS ANALYST

CHICAGO, Aug. 17 /PRNewswire/ -- Packaged food prices should show only moderate increases as a result of the drought, says an analyst at Duff & Phelps Inc., the Chicago-based investment research and financial consulting firm.

"Grain costs are only a small percentage of the total shelf price of a packaged food item," explained Mary Lynn Harden, a group vice president and financial analyst with Duff & Phelps. "Plant efficiencies and recent small price increases should offset any major rise in raw material costs, including ingredients."

Harden retains a positive investment ...

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