Rising Cost Of Meat Likely To Add To Inflation Problem

Consumers across the world are likely to feel the brunt of escalating meat prices according to a study released today.

The survey published today by accountants and business think-tank Delloite reflected an imminent threat of meat price inflation, off the back of rising farming costs on a global scale.

After a year of poor weather for growers across the globe, with more severe weather patterns seriously damaging yields, the global supply of wheat has plummeted to its lowest point in over twenty-five years.

Furthermore, with rapidly expanding demand for wheat and wheat based products in eastern emerging markets, the supply shortage is even more significant news in global economy terms.

Production in China was down by 20% according to some estimates, whilst growers in Canada and throughout the EU found it hard to reach anywhere near last year’s yield.

Analysts are fearing that the continued effect of global warming on our weather could lead to more harvests like this year, which would have the potential to escalate the price of very basic foodstuffs out of reach of most in society.

With food a major constituent to national inflation figures as a primary factor of the consumer price index, authorities across the world will find keeping within their inflation targets becoming a more difficult process.

Practically speaking, the report by Delloite found that the price of animal feed has nearly doubled for farmers off the back of the wheat crisis. As a major component in the manufacture of animal feeds, all time record high wheat prices are having an inevitable impact on the cost of producing meat.

For the consumer, this looks set to be passed on as increased prices on the supermarket shelves, leaving the end buyer to absorb the price rises.

After the ongoing US sub-prime mortgage lending saga, experts are fearing that the impact of rising demand against falling supply for wheat could lead to yet more bad news for the global economy.

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