BOHICA, Food Producers Planning Price Increases To Cover Rising Transportation Costs.

In case you haven’t been paying attention or aren’t the one buying groceries in your family, consumers have been taking it in the shorts for a very long time when it comes to buying food and other basic goods  because of inflation, which the government does it’s damndest to hide the numbers on.

Quite a few years ago many food producers started trying to hide their rising costs by selling their products in smaller portions and containers for the same price.

Now they are flat out saying they are going to raise prices, because they have to.


Corporate America’s new dilemma: raising prices to cover higher transport costs


SEATTLE/BOCA RATON, Fla. (Reuters) – The drive for cost cuts and higher margins at U.S. trucking and railroad operators is pinching their biggest customers, forcing the likes of General Mills Inc and Hormel Foods Corp to spend more on deliveries and consider raising their own prices as a way to pass along the costs.


Interviews with executives at 10 companies across the food, consumer goods and commodities sectors reveal that many are grappling with how to defend their profit margins as transportation costs climb at nearly double the inflation rate.

Two executives told Reuters their companies do plan to raise prices, though they would not divulge by how much. A third said it was discussing prospective price increases with retailers.

The prospect of higher prices on chicken, cereal and snacks costs comes as inflation emerged as a more distinct threat in recent weeks. The U.S. Labor Department reported earlier this month that underlying consumer prices in January posted their biggest gain in more than a year.


RTWT, there is much more.


On a related note, I see gas prices have stayed pretty steady around here at just under $3 a gallon.

The squeeze is going to be on for people who are already struggling.


This would be a very good time to start learning how to buy in bulk, where the best places are to do that and how to store it. The internet is your friend people, there are millions of articles and How To’s out there within easy reach with a quick internet search.


Just in the last six months, the name brand coffee I was buying to stick in the garage not only went up in price, the plastic container shrank considerably.


That is only one example.

According to that article most of the major food producers and packagers are going to raise the price on just about everything to pass their costs on.

Us consumers are at the end of the line with nowhere to go and will pay it, one way or another.

8 thoughts on “BOHICA, Food Producers Planning Price Increases To Cover Rising Transportation Costs.

  1. The new electronic log system and change of hours rules for truckers that was instituted in December is the culprit, especially for food products and fresh produce in particular.
    Freight prices on some deliveries has almost doubled because this inflexible system has made many normally overnight deliveries into a second day delivery.
    For example, a load of Maine potatoes hauled from Caribou Me. to New York city traditionally has been an over night delivery at 610 miles one way.
    That now, legally requires two days to complete.
    That truck is idled, due to driver’s rest rules, and missed delivery hours, for a whole day when he could have driven an extra 45 minutes to make the delivery.
    The laws of unintended consequences.
    Or are they really unintended?


    • Exactly: More and more regs, and less hours for the drivers have made for less efficiency in the truck delivery for many routes. Add in more (and higher) cost for equipment and software for logging, and the EPA forcing truckers and trucking companies to buy newer trucks that meet ever restrictive emissions regs, and you get what we got.


  2. I personally don’t mind higher prices when buying groceries as long as they‘re either organically produced by local farmers or else made abroad in cooperatives where farmers and workers aren’t exploited but receive fair wages.
    Thirty years ago bananas were considered a luxury in my region and they were quite expensive. In the late fifties coffee was a sought after black market item over here being used in exchange for basic stuff needed to make ands meet. Only the wealthy drank it on a daily basis.
    What I mean to say is that we have been extremely pampered the last decades when it comes down to food and drink, groceries and fuel prices.
    If prices went up I‘d be willing to pay more as long it’s not the big cooperations and stock exchanges who are the profiteers.
    For example I would greatly welcome the prices of all goods and raw materials coming from Africa being raised to a luxury level if it would assist the people over there to live a decent life and in turn no African „refugees“ would be permitted on European soil anymore.


  3. For example I would greatly welcome the prices of all goods and raw materials coming from Africa being raised to a luxury level if it would assist the people over there to live a decent life and in turn no African “refugees” would be permitted on European soil anymore.

    Which it wouldn’t. Instead you’d see purchasers going to China or Mexico or wherever they could to get lower prices, or consumers just doing without or finding other, cheaper, alternatives.


  4. This is the same trend that sees me buying $18 worth of steel and paying $30 for shipping the whole 4 pounds around the country. Shipping prices everywhere are going up, and I have no reason to doubt “Handy n Hamsom” saying it’s the companies being squeezed by the Feds as the reason.

    Buying in bulk and buying local farm produce is the best shot you’ve got. If you can grow your own, all the better.


  5. 48oz Folgers, both mild and medium roast, is less than $10 at Sam’s Club. I buy bulk, even tho I live alone, and I try to stay away from processed food. Unprocessed is better for you too, less of the charms we don’t need.


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