Gary Mickelson, Tyson company spokesman announced that while the chicken giant has it's corn needs covered for the rest of the year, they cannot promise that prices will stay even in light of the rising cost of corn:We’re closely monitoring grain prices and continue efforts to limit our exposure to price increases. However, we believe higher corn prices will ultimately result in consumers paying more for chicken, since we’ll be forced to raise our prices to offset the increase in input costs.And Tyson isn't the only food producer hinting at higher prices. Both General Mills and ConAgra Foods said that the promotions and price battles consumers have been enjoying at the grocery store will begin to ease.
Is this the beginning of another food crisis- despite earlier claims to the contrary?
Further Reading
Bloomberg on Tyson's Announcement
NASDAQ on the dwindling food discounts.
