Sysco declares force majeure, raises grocery prices

Saturday, February 12, 2011
By Paul Martin

by Jack H Barnes
ZeroHedge.com
02/12/2011

Food inflation driven by freezing weather in Florida during December and in Mexico during February, is hitting the US supermarkets in the coming day’s. Sysco sent out an alert that announced an “Act of God”, to address their contracted supply issues.

The cold of the Superbowl weekend in Texas, has had a more lasting impact than on just the game plans for lots of travelers. The deep cold sank into the produce fields of northern Mexico, destroying fresh produce crops. This is the biggest page 16 story, about to hit a headline, that you have seen in a while. Your restaurants will be low on fresh produces for weeks. They will have to raise prices significantly or cut the produce out of the menu.

On Feb. 8, the U.S. Department of Agriculture reported prices of $22.95-24.95 for two-layer cartons of 4×4, 5×5 and 5×6 vine-ripe field-grown tomatoes from Mexico, up from $6.95-9.95 the week before and $5.95-7.95 the year before.

This cold storm has brought to the food growing region the coldest temps in 50 years. This has caused damaged to most of the fresh produce available to US supermarkets in the winter spring season. This is going to impact the price you pay at the Supermarket anywhere in the North American continent.

The Rest…HERE

Leave a Reply