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Article: Corn Prices Near Record High, But What About Food Costs?
- Article from:
- Amber Waves
- Article date:
- February 1, 2008
- Author:
CopyrightCopyright Superintendent of Documents Feb 2008. Provided by ProQuest LLC. (Hide copyright information)
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* Higher corn prices increase animal feed and ingredient costs for farmers and food manufacturers, but pass through to retail prices at a rate less than 10 percent of the corn price change.
* Given that foods using corn as an ingredient make up less than a third of retail food spending, overall retail food prices would rise less than 1 percentage point per year above the normal rate of food price inflation when corn prices increase by 50 percent.
* Even this increase may be partially tempered by changes to corn use in food production.
Record U.S. trade driven by economic growth in developing countries and favorable exchange rates, combined with tight global grain supplies, resulted in ...