At All Costs

"Why are food prices rising so much so quickly?"

As editor of a food magazine, I get to throw this question around to experts a lot. Inevitably, it returns to me by way of friends, family and colleagues in the industry.

A background in agri-commodities and animal feed has given me some insights into the current price spiral. The reasons are plentiful enough: poor harvests in major crop regions; oil prices jacking up freight costs; growing calorie intakes in China and India; biofuels. The list runs on.

But long before prices rose to where they are now, there have always been the poor and hungry. Economics—the allocation of scarce resources like food—doesn’t cater to need but demand. And demand is the ability to buy. Markets, unfortunately, feed those who can afford to eat, not those who need it most. This is where governments, NGOs and even the private sector should step in and meet the gap where money-centric global markets fail.

So what role can food companies play in all this? Increasingly complex supply chains have meant a need to simplify entire production lines. As crucial as the ability to track and trace, automate and innovate are, public perceptions of food brands often overlook this. Rather, it is through the quality of products continuously delivered and the communication of corporate social responsibility ideals that a brand’s reputation is forged.

While food processors cannot be entirely responsible for primary food costs, they should ensure that what they produce is affordable and safe today, and its production sustainable for tomorrow.