How Food Company Profits Are Making Groceries More Expensive

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Across the country, the high grocery prices have crunched budgets for essential food items. But at the same time, some of the largest food corporations are raking in profits

10%,

The trend shows that the packaged food industry is benefitting from passing the price increases along to American consumers. And as more food companies are reaping the rewards of higher profit, it could result in your grocery prices staying at these inflation-driven levels for longer, says Chris Becker, a senior economist at Groundwork Collaborative, which promotes left-leaning economic policies.

“Food companies are taking advantage of this very precarious moment,” says Irit Tamir, Director of Oxfam America’s private sector department, which seeks to fight inequality to end poverty and injustice. “They are hiding behind a very good story of the pandemic, inflation, and the Ukraine war to say that they need to raise prices, but they are actually just creating a smash and grab for profit, exploiting and exacerbating inflation.

because of higher egg prices. The company, which controls about 20% of the U.S. egg market, said its average selling price for a dozen eggs in the quarter ending Feb. 25 was $3.30, more than double the average of $1.61 a year earlier.The company has pointed to decreased egg supply nationwide due to avian flu as the reason for higher prices and record sales. The avian flu, which is tearing through poultry farms across the U.S., wiped out some 58 million birds in the last year.

 

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It's worth noting that not all large food corporations are necessarily raking in profits. The food industry is highly competitive, and many factors can influence a company's financial performance. Market power gives big food corporations control over the supply chain and pricing.

‘We may be looking at the end of capitalism’: One of the world’s oldest and largest investment banks warns ‘Greedflation’ has gone too far.

Fy

Sounds like the gas and oil companies

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