Food prices rise by double digits in the first half amid high oil prices and a weak currency
9With the trend of high oil prices and a weak currency continuing for an extended period, prices of major agricultural, livestock and fishery products and food items rose by double digits or more in the first half of this year, according to data. Farmers are simultaneously facing rising production costs and plunging prices for some items.
9As the trend of high oil prices and a weak currency continued, prices of major agricultural, livestock and fishery products and food items rose by double digits or more in the first half of this year. From an investor's perspective, it is necessary to monitor food companies' earnings and the trend in consumer prices.
For items dependent on imports, unit prices rose due to the depreciation of the currency. Transportation, fertilizer and feed costs increased under the influence of high oil prices.
Farmers are facing a double burden: production costs have risen, while wholesale and farm-gate prices for some items have plunged. It has been reported from the field that the burden of fuel and fertilizer costs is particularly heavy.
First-half trends emerged across major categories, including grains, edible oils, fishery products, and livestock products. Rising prices are increasing the burden of consumer purchasing costs.
Some processed-food companies and retailers are reporting disclosures on higher raw-material costs and changes in profitability. The scope of the impact can be assessed through company-specific disclosures and quarterly results.
The market is also watching announcements on price trends and schedules for farm-support measures from the government and relevant agencies. Checking related disclosures and statistical release dates can help identify when changes occur.