The Huge Cost of This Grocery Staple Is Causing Others to Rise, Experts Say
A bushel of corn or grain currently costs above $7, which is the highest price tag that farmers have seen in about a decade. While everyday shoppers aren't buying these items at grocery stores, those hefty prices are causing what they are buying to go up in price—especially when it comes to meat.
Farmers are being forced to pay so much for grain bushels that they're raising the price of meat, and it's important to keep in mind that a few farms control a hefty amount of the market. Both JBS and Tyson recently announced price increases to offset the costs. Corn allows livestock to put on a lot of weight in a short amount of time, which is ideal in the production process, according to Forbes. (Related: Grocery Shortages To Expect in 2021, According to Experts)
"We have had a sharp increase in costs," Gilberto Tomazoni, the CEO of JBS S.A., said. "Grain costs are a structural condition that will stay here for a while. We will adapt our pricing and work on efficiencies to mitigate this cost increase."
Tyson isn't the only company paying more to feed its livestock, but it actually has fewer animals right now. Leaders recently blamed new roosters for a shortage of chickens. The underperforming birds were brought in earlier this year, but lower hatch rates have forced the company to switch back to the type of male that was used before.
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