Meat pies are going up, according to Futuris Corporation. Futuris CEO Les Wozniczka told his annual general meeting yesterday that, “Given the price rises we have seen globally in input costs such as fuel, energy, fertiliser, labour and interest rates, we are expecting a major readjustment in food prices.”
He had more good news. “We have already seen significant increases in commodity prices for dairy products and grains, but we have yet to see the flow-on effects to livestock, meat products, eggs… Prepare yourselves for some serious inflation in your cost of living, because, globally, we are seeing pricing power starting to return to farmers.”
“World getting fatter,” reports John von Radowitz in today’s Daily Telegraph. “Two out of five men and almost a third of women around the world are now overweight, a major population study has shown,” he continues. “Almost a quarter of men and 27 per cent of women are fat enough to be considered obese.”
Something has to give. You can’t have rising food prices AND infinitely expanding waistlines. They are mutually exclusive. In the coming years, either food will be a lot more expensive and people will eat fewer calories per day, or all pants will come with elastic in the waistband. Or perhaps we will all just wear sweatpants.
Seriously, do you ever get the feeling that the last 50 years have been one long orgy of consumption and excess in the Western World? Cheap credit and cheap energy have combined to offer people more calories, more comfort, and more cheap crap than ever before.
But now the era of cheap credit and cheap energy is over. Calories are getting more expensive. So is energy. And credit itself is shuffling in to a long term bear market. What will people do?
Markets and Money