food prices soar

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    Food Prices Soar
    Experts Blame Demand, Fuel Prices

    POSTED: 6:10 am CDT August 16, 2007


    DES MOINES, Iowa -- Experts said there are several reasons behind the increases.

    According to the Commerce Department, the June prices of household foods such as oranges and eggs are up almost 20 percent over last year. Other products such as milk, apples and meat are also soaring.

    Egg prices in July were up about 33 percent over the same time last year.

    Expert said the price hike can be blamed everything from higher gas prices to increased demand.

    "You have some of the increased demand in other countries. Demand for milk products in China and India have gone up putting more supply pressure," said Neil Hamilton, a professor at Drake University's Agricultural Law Center. "On the egg side of things, it's truly a supply-demand relationship."

    Kevin Vinchattle, executive director of the Iowa Egg Council, said that compared to a year ago, a lot of costs have increased such as feed and fuel. He added that there were a smaller chicken flock size than last year.

    One of the biggest price hikes is on oranges, and its being reflected in the price of orange juice. It wasn't too long ago that consumers could buy two cartons for $5, now one of them will cost almost $4.

    "Certainly, the cold weather and the freezes in Florida were a major part of that. People in Iowa can relate to that because we lost a significant amount of our apple crop this spring," Hamilton said.

    Experts said there will likely not be any relief in the near future. They said prices may continue to go up.
 
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