Food prices are increasing becauseof high oil prices on the international

Tag : canned corned beef
If you've made a trip to the grocery store recently then you mayhave noticed that the costs of everyday goods are continuing toclimb.
The latest round of increases is recorded in the newest consumerprice report from the Department of Statistics.
The report shows for instance that in New Providence, the cost ofsweet peppers increased by 10.6 percent in June over the previousmonth; the cost of onions increased by 5.5 percent; the price offlour and prepared flour mixes jumped 4.4 percent; other freshvegetables by four percent; stew beef by 2.5 percent; rice by 2.5percent, coconuts, ground beef and canned fish and seafood by 2.4percent, potatoes by 2.1 percent and canned milk by two percent.
"Flour, definitely every shipment goes up," Rupert Roberts,president of Super Value foodstores, said yesterday. "We did a lotof forward buying when we heard that certain commodities were goingup."
Roberts noted that the price of rice is "out of control."
"The new cost is advancing 37 percent," he told The NassauGuardian. Roberts said that price jump is over the last shipment.
"The public is paying that now. (Cooking) oil went up 60 percent.We bought 10 or 15 containers to prevent the public from payingmore. Because we did a lot of forward buying on the popular sizeswe haven't raised the price yet. Price control (officials) havebeen working with us so that the country won't run out of food,"Roberts said.
Super Value expects to soon bring in cheaper oil from Argentina.
He said the cost of cereals is also up even though cereals are nowduty free.
Referring to Devon corned beef, Roberts said the price per case forthe latest shipment has increased from $22.95 to $46. But SuperValue is currently still selling at the old price. Roberts saidconsumers can "definitely" expect a cost increase for Devon cornedbeef.
But the price on Rainbow corned beef – the company's housebrand – will not be increased this year because Super Valuedid forward buying on that brand, according to Roberts.
The cost of Robinhood flour has increased 42 percent in the newshipment, he noted.
Roberts said for the most part, food prices are increasing becauseof high oil prices on the international market, but also because ofa shortage of corn.
Cost increases aren't only being felt by consumers who are foodshopping.
Ship freight costs moved up by 15.6 percent in May when compared toApril and airfare prices climbed by three percent during the sameperiod, the Department of Statistics said.
Thomas Gibson, operations manager at Seaboard Marine, told TheNassau Guardian that high oil prices are to blame.
"Freight costs are rising based on the price of oil now," Gibsonsaid. "We try to keep our rates as low as possible. We don't wantto pass them on to customers, but if oil prices increase we have nochoice."
After reaching record highs above $147 per barrel last month, theprice was on a downward trend, but rebounded to $120 per barrelyesterday. Gibson said Seaboard's Miami office monitors oil pricesdaily.
"Every shipping company is trying to compete for the dollar," hesaid. "Because of the rate changes consumers are scrambling for thecheapest rates, so there are some wars going on, but I think we areone of the lowest."
In New Providence in May, higher prices – a jump by 19.6percent – were also recorded for packaged tours. This wasmostly responsible for the rise in the Recreation & Entertainmentindex, the report said.
In June, consumers in New Providence also paid more for electricity– again. The cost was 3.2 percent higher than in May, thereport said. But it added that the cost of electricity in GrandBahama actually decreased by 6.5 percent for the month of June. Itwas the only price decrease highlighted in the May and June data.
In May, Grand Bahama consumers witnessed a 5.7 percent increase inthe price of electricity, according to the Department ofStatistics.
Roberts said at Super Value stores, "electricity costs areintensifying as we speak."
He said that from June 2007 to June 2008 Super Value saw a 38percent increase.
"We absorb that. That comes right out of the bottom line. Last yearfor 40 weeks our bill was $2.1 million. This year it's $2.583. Oilis dropping, but we haven't seen it yet. I hope to get somerelief."
Roberts said he believes that in the immediate future the price perbarrel will drop to $90, but he said he has heard from the expertsthat it could still be as high as $200 by the end of the year.
And that would be bad news for consumers, he noted.
"Every first of the month I write BEC a cheque for more than aquarter of a million dollars," Roberts said.
He said nobody would be able to afford to shop if Super Valuepassed the costs on completely.
"When somebody gives us the prices of a commodity going up,naturally we don't accept it. We look at another country or anothersource," Roberts said. "We look at a competitor to see if we canpull it from there. We want the public to know that it's not us.We'd love to control the world, but we can't."
Reflecting a continued increase in the cost of living, the consumerprice report showed that in New Providence in May the cost of drycleaning services moved up 12.5 percent compared to the previousmonth.
And in Grand Bahama in June, price increases recorded in theMedical Care & Health Index were as a result of increased cost forphysician services, 5.3 percent, the report said. This was followedby specialists and dental services, four percent; medicallaboratories services, 2.4 percent and medical pharmaceuticalproducts, 0.2 percent.
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