Latest news with #FoodPriceIndex
Gulf Insider
03-05-2025
- Business
- Gulf Insider
Global Food Prices Climb Toward Arab Spring-Era Highs Amid Trade War Turmoil
Global food prices surged to a two-year high in April, driven by U.S. tariff policy uncertainty that has injected turmoil across markets. The latest spike brings prices dangerously close to levels that helped fuel the Arab Spring uprisings across the Middle East and North Africa between 2010 and 2012. The Food and Agriculture Organization of the United Nations (FAO) reported on Friday that its Food Price Index—which tracks monthly changes in international prices of globally traded food commodities—averaged 128.3 points in April, up 1% from March and 7.6% from the same month last year. The Food Price Index (FFPI) subcomponents, including cereals, meat, and dairy, mainly were up, while vegetable oils and sugar were down. Here's a breakdown of how FFPI's subcomponents performed in April: Cereals: Up 1.2% from March; wheat rose on tighter Russian exports, rice up on demand for fragrant varieties, maize higher due to low U.S. stocks. Meat: Up 3.2%; pig meat led gains, bovine prices firmed in Australia and Brazil on strong demand and limited supply. Dairy: Up 2.4%; butter hit an all-time high due to declining inventories in Europe, dairy index now 22.9% higher year-over-year. Vegetable Oils: Down 2.3%; palm oil fell with rising Southeast Asian output, soy and rapeseed oil up on strong demand, sunflower oil steady. Sugar: Down 3.5%; decline driven by fears of weakened demand from beverage and food sectors amid uncertain global economic outlook. At 128.3, the FAO said FFPI moved to a two-year high on 'currency fluctuations influencing price movements in world markets, while tariff policy adjustments raised market uncertainty.' Those prices are nearing 2010-12 Arab Spring levels… Bloomberg quoted Monika Tothova, an economist at the FAO, as saying that short-term demand for some ag products has been visible amid the tariff war between President Trump and China. The lingering question is whether the FFPI will continue rising amid tariff uncertainty—or if potential signaling around new trade talks between the U.S. and China suggests this price surge may be temporary. Still concerning is the level at which prices linger and how higher food prices can trigger social destabilization in weak countries.
Yahoo
03-05-2025
- Business
- Yahoo
Experts warn global crisis is deepening as soaring food costs push millions to the brink: 'We are at a breaking point'
Global food prices continue to rise. Experts warn that vulnerable and poor communities may feel the hardest impacts. A new report by the international non-profit organization World Vision describes how hunger is a wide-reaching pandemic, especially for poorer countries. According to the report, "The highest food prices were found in Burundi, Central African Republic, Sudan, and Niger — countries facing conflict, extreme climate events, and economic turmoil." Food prices are rising around the world. According to the U.N.'s Food and Agriculture Organization's Food Price Index, which tracks a predetermined group of food products, was up 8.2% from February 2024 to February 2025. Amanda Rives, senior director, disaster management at World Vision International, told reliefweb that "we are at a breaking point" and more interventions and long-term solutions will be needed to prevent communities around the world from existing in states of famine. As food becomes more expensive, individuals and families may struggle to put food on the table. According to the United Nations, about 9.2% of the earth's population was in a state of chronic hunger in 2022. When a person is hungry, they can have trouble focusing and can have physical symptoms like dizziness or weakness. Hunger affects both mental and physical health. Rising food prices are the result of a blend of socio-political and environmental factors. Focusing on the environmental factors, the overheating of our planet is a major contributor. This means that rising food prices are a symptom of a larger problem. Extreme weather patterns empowered by our warming climate have led to food system disruptions. Agriculture depends on the climate, and shifting growing seasons can have disastrous impact on crop yields. What is the biggest reason you don't grow food at home? Not enough time Not enough space It seems too hard I have a garden already Click your choice to see results and speak your mind. These climate changes disrupt all stages of the food system, for humans and other animals on the planet. Organizations like the World Food Programme are doing important work to bring food to those who need it, offer training in sustainable agricultural processes, and cultivate knowledge in communities to help them adapt to the food-based challenges they face. We can each do our own part, however small, to help food supplies. For one, we can make sure our yards are pollinator-friendly to nurture healthy ecosystems. We can also make eco-conscious decisions. When shopping for groceries, a little bit of planning can go a long way. And when our food is in the home, we can do our best to cut down on food waste. As Rives said, "For millions of families, food is not just expensive, it is out of reach. No child should go to bed hungry in a world that produces more than enough food for everyone." Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
15-04-2025
- Business
- Yahoo
Farmers warn of skyrocketing food prices as supplies decrease worldwide: 'Concerns over ... tighter global supplies'
Your grocery bill might be getting steeper. Global food prices rose in February, with sugar, dairy, and vegetable oil costs leading the upward trend, as reported by the United Nations' Food and Agriculture Organization. The FAO's Food Price Index, which tracks monthly changes in international food commodity prices, hit 127.1 points in February. That's 1.6% higher than January and 8.2% above last year's February level. Sugar prices jumped 6.6% after three straight months of falling, reaching 118.5 points. The FAO points to "concerns over likely tighter global supplies for the 2024/25 season, particularly due to declining production prospects in India and adverse weather conditions affecting crops in Brazil." Dairy costs increased 4.0%, while vegetable oil prices rose 2.0% — a whopping 29.1% higher than this time last year. Cereal prices increased slightly (0.7%), while meat prices mainly remained flat. When our planet overheats, our wallets feel the heat, too. Weather extremes linked to rising temperatures directly affect food production, pushing grocery prices upward. The current spike in sugar prices shows how vulnerable crops are to unusual weather patterns. When Brazil's sugarcane faces harsh conditions and India's production falls, everyone pays more at checkout lanes worldwide. For families already stretching their budgets, these increases make putting food on the table harder. Higher dairy and vegetable oil costs affect everyday staples like cheese, milk, cooking oils, and margarine — basics that most households use daily. The entire food supply chain feels the rising costs of the commodities. They eventually hit your local supermarket shelves with higher price tags. Start by buying seasonal produce when it's most abundant and affordable. Foods in peak season often cost less and taste better. What is the biggest reason you don't grow food at home? Not enough time Not enough space It seems too hard I have a garden already Click your choice to see results and speak your mind. Consider plant-based protein alternatives, which typically cost less than animal products and require fewer resources to produce. Beans, lentils, and tofu are budget-friendly nutritional options. Growing some of your own food, even just herbs on a windowsill, can trim grocery bills while giving you access to fresh ingredients. Meal planning based on sales and what's already in your pantry minimizes waste and maximizes your dollar. Supporting local farmers through markets or CSA programs often provides fresher food while helping build a more resilient local food system less affected by global price swings. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
13-04-2025
- Business
- Yahoo
Is Kraft Heinz Company (KHC) the Best Food Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where The Kraft Heinz Company (NASDAQ:KHC) stands against other best food stocks to buy according to billionaires. A significant contributor to the global economy, the food business has changed over time to meet shifting consumer needs, technological breakthroughs, and market conditions. The worldwide food and beverage industry was estimated to be worth $6.96 trillion in 2024 and is projected to grow to $7.4 trillion by 2025, according to The Business Research Company. Rapid urbanization, rising consumer spending, and a greater need for quick and healthful food options have all contributed to the industry's growth. On the other side, businesses must contend with shifting trade regulations, supply chain limitations, and inflationary pressures. The growing desire for more sustainable and healthful food options has a significant impact on the food sector today. According to Future Market Insights, the global market for healthy foods is anticipated to reach $897 billion by 2025 and expand at a compound annual growth rate (CAGR) of 9.7% to reach $2.2 trillion by 2035. Awareness of diet and its connection to long-term health issues, including obesity, diabetes, and heart disease, is driving change in the food market. Organic, non-GMO, and fortified food is in high demand as consumers seek clean-label, minimally processed, and plant-based substitutes. Additionally, the food-away-from-home (FAFH) industry is expanding at an unprecedented rate. Spending at food service establishments broke pre-pandemic records in 2021 and reached $2.6 trillion in 2023, according to the U.S. Department of Agriculture. Full-service and limited-service eateries accounted for about 69% of all FAFH spending to fuel this expansion. The burgeoning market for digital ordering platforms and the rising demand for convenient dining-out options are the main drivers of this expansion. Menus are changing as a result of rivalry between full-service and limited-service eateries. This is made possible by traditional restaurants emphasizing convenience and delivery optimization, while quick-service restaurants are expanding their premium menus. For the industry, inflation is still a big worry, though. In December 2024, grocery prices jumped 1.8% year over year, while the cost of eating out rose 3.6%. Supply chain interruptions and rising manufacturing costs were the main causes of these spikes. Furthermore, the Food Price Index increased by 1.6% month over month in February 2025, according to the FAO, as food price inflation continues to be a serious concern, mostly due to rising costs for sugar, dairy, and vegetable oil. Businesses are aggressively seeking to implement pricing optimization techniques, sustainability programs, and cutting-edge supply chain technologies to allay these worries and preserve profits. Furthermore, technological innovation is significantly changing the food industry's future. Artificial intelligence (AI) and robotics are being utilized to improve supply chains, boost industrial efficiency, and reduce food waste. The food industry's long-term prospects are still bright despite these worries. Urbanization, the growth of the middle class, and shifting customer preferences all continue to help the industry. As a result, top food stocks provide investors with an amazing opportunity and an average yearly return of 32.25%. Businesses that prioritize health-conscious options, integrate innovation, and advance sustainably will be well-positioned for future growth. For this article, we selected stocks from the First Trust Nasdaq Food & Beverage ETF and the Invesco Dynamic Food & Beverage ETF. These ETFs provided exposure to U.S. companies comprising the food and beverage sector. We then shortlisted these stocks based on the highest number of billionaire holdings tracked by the Insider Monkey Q4 2024 database. In cases where multiple stocks had the same number of billionaire holdings, we used the dollar value of these holdings as a tiebreaker. Finally, the stocks were ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces. The Kraft Heinz Company (NASDAQ:KHC) tops our list for being one of the best food stocks. It is a global leader in the food and beverage industry that was formed in 2015 through the merger of Kraft Foods and Heinz. The company manufactures a variety of goods, such as meat, dairy, sauces, drinks, and other commodities. In Q4 2024, The Kraft Heinz Company (NASDAQ:KHC) reported a mixed bag of results, with increased profitability offsetting decreased revenue. Due mostly to unexpected tax benefits and fewer outstanding shares, the company posted an adjusted EPS of $0.84, up $0.06 from market estimates. However, due to a decline in organic sales, its Q4 revenue was reported at $6.58 billion, which was 5% lower year-over-year and marginally less than the $6.66 billion forecast. Stifel updated its forecast for The Kraft Heinz Company (NASDAQ:KHC) in light of these findings, lowering the price objective from $32 to $31 but maintaining a Hold rating. According to the Insider Monkey database, 43 hedge funds owned stakes in The Kraft Heinz Company (NASDAQ:KHC) in Q4 2024, up from 39 in the previous quarter. The consolidated value of these stakes is nearly $11 billion. Warren Buffett's Berkshire Hathaway was the company's leading stakeholder in Q4. Overall, KHC ranks 1st on our list of best food stocks to buy according to billionaires. While we acknowledge the potential of food companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
13-04-2025
- Business
- Yahoo
Is The Kroger Co. (KR) the Best Food Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where The Kroger Co. (NYSE:KR) stands against other best food stocks to buy according to billionaires. A significant contributor to the global economy, the food business has changed over time to meet shifting consumer needs, technological breakthroughs, and market conditions. The worldwide food and beverage industry was estimated to be worth $6.96 trillion in 2024 and is projected to grow to $7.4 trillion by 2025, according to The Business Research Company. Rapid urbanization, rising consumer spending, and a greater need for quick and healthful food options have all contributed to the industry's growth. On the other side, businesses must contend with shifting trade regulations, supply chain limitations, and inflationary pressures. The growing desire for more sustainable and healthful food options has a significant impact on the food sector today. According to Future Market Insights, the global market for healthy foods is anticipated to reach $897 billion by 2025 and expand at a compound annual growth rate (CAGR) of 9.7% to reach $2.2 trillion by 2035. Awareness of diet and its connection to long-term health issues, including obesity, diabetes, and heart disease, is driving change in the food market. Organic, non-GMO, and fortified food is in high demand as consumers seek clean-label, minimally processed, and plant-based substitutes. Additionally, the food-away-from-home (FAFH) industry is expanding at an unprecedented rate. Spending at food service establishments broke pre-pandemic records in 2021 and reached $2.6 trillion in 2023, according to the U.S. Department of Agriculture. Full-service and limited-service eateries accounted for about 69% of all FAFH spending to fuel this expansion. The burgeoning market for digital ordering platforms and the rising demand for convenient dining-out options are the main drivers of this expansion. Menus are changing as a result of rivalry between full-service and limited-service eateries. This is made possible by traditional restaurants emphasizing convenience and delivery optimization, while quick-service restaurants are expanding their premium menus. For the industry, inflation is still a big worry, though. In December 2024, grocery prices jumped 1.8% year over year, while the cost of eating out rose 3.6%. Supply chain interruptions and rising manufacturing costs were the main causes of these spikes. Furthermore, the Food Price Index increased by 1.6% month over month in February 2025, according to the FAO, as food price inflation continues to be a serious concern, mostly due to rising costs for sugar, dairy, and vegetable oil. Businesses are aggressively seeking to implement pricing optimization techniques, sustainability programs, and cutting-edge supply chain technologies to allay these worries and preserve profits. Furthermore, technological innovation is significantly changing the food industry's future. Artificial intelligence (AI) and robotics are being utilized to improve supply chains, boost industrial efficiency, and reduce food waste. The food industry's long-term prospects are still bright despite these worries. Urbanization, the growth of the middle class, and shifting customer preferences all continue to help the industry. As a result, top food stocks provide investors with an amazing opportunity and an average yearly return of 32.25%. Businesses that prioritize health-conscious options, integrate innovation, and advance sustainably will be well-positioned for future growth. For this article, we selected stocks from the First Trust Nasdaq Food & Beverage ETF and the Invesco Dynamic Food & Beverage ETF. These ETFs provided exposure to U.S. companies comprising the food and beverage sector. We then shortlisted these stocks based on the highest number of billionaire holdings tracked by the Insider Monkey Q4 2024 database. In cases where multiple stocks had the same number of billionaire holdings, we used the dollar value of these holdings as a tiebreaker. Finally, the stocks were ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Chefs in a fast-food kitchen preparing burgers and fries. The Kroger Co. (NYSE:KR) is a major U.S. grocery retailer with 2,750 stores under banners like Kroger and Fred Meyer. It offers groceries, pharmacy products, fuel, and private-label goods such as Simple Truth. The company earns revenue mainly through retail sales, with additional income from pharmacy services, fuel, e-commerce, and advertising partnerships. The Kroger Co. (NYSE:KR)'s Q4 2024 earnings call, held on March 6, 2025, highlighted steady growth and strategic progress across key areas of its business. Its Identical sales without fuel rose by 2.4%, which reflected strong momentum in grocery, pharmacy, and digital sales. This performance was supported by the business's customer-focused approach, which emphasizes fresh, high-quality products and personalized promotions. The company's gross margin improved by 54 basis points, which was driven by the sale of Kroger Specialty Pharmacy and reduced inventory shrink. At the same time, digital sales remained a strong contributor to overall performance, with continued investments in automation and technology aimed at improving profitability in this channel. The Kroger Co. (NYSE:KR)'s alternative profit businesses also played a key role in boosting margins, with media revenue growing 17% year-over-year (excluding the extra week in 2023). The company's strategy to expand into health and wellness and media continues to deliver high-margin gains, supporting overall earnings stability. Adjusted EPS stood at $1.14, flat compared to the previous year when excluding the 53rd week. On the profitability front, the corporation's improved gross margin and strong performance from its private-label 'Our Brands' offset rising operating expenses. These expenses were influenced by incentive plans, wage investments, and the Specialty Pharmacy divestiture. Looking ahead, a notable development is The Kroger Co. (NYSE:KR)'s new agreement with Express Scripts, which grants ESI customers access to medications and health services at KR pharmacies. Though not yet factored into guidance, this deal could strengthen the company's position in the growing health and wellness segment. Overall, KR ranks 2nd on our list of best food stocks to buy according to billionaires. While we acknowledge the potential of food companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
