July 1, 2022

La Ronge Northerner

Complete Canadian News World

Soaring food prices are pushing food banks to the brink

Nestle prices rose 5% in the first quarter. There is more to come

North American consumers were the hardest hit, with prices up 8.5%, the company said in its first-quarter earnings report on Thursday. Latin America saw the second largest increase, with the price of Nestlé products increasing by 7.7%.

CEO Mark Schneider indicated that more increases are on the horizon.

“we [have] He said in a statement that prices have been boosted in a responsible manner and witnessed continuous demand from consumers, adding that cost inflation continues to rise sharply, which will require further pricing and easing measures throughout the year.

Global inflation is rising. US consumer price inflation reached 8.5% in March, a Highest level in 40 years. In Europe it stands at 7.5%, the highest level since the European Union began collecting data about 25 years ago. Prices of goods leaving Germany’s factories – fueling retail prices – By 30% in March During the same month last year. This is the biggest increase At 73 years old.

Energy was the biggest driver of inflation, but global food prices are rising.

Nestlé reported a 5.4% increase in total sales during the quarter, and expects sales to grow 5% for the full year. Brands such as Purina PetCare, Nescafé and KitKat were the biggest contributors to its growth in the first quarter.

But higher costs can negatively affect profits. The company expects core profit margin for this year to be between 17% and 17.5%, compared to 17.4% in 2021.

International food prices It hit an all-time high earlier this year with the spread of the epidemic, bad weather and agricultural volatility threatened food security for millions of people. The Russian invasion of Ukraine exacerbated the situation, resulting in higher prices for basic commodities such as wheat And vegetable oils.
World Bank President David Malpass has warned that skyrocketing food prices could lead to a “humanitarian catastrophe” in India BBC interview This week, he said prices could rise as much as 37% as a result of the war in Ukraine.
swiss giant Attracted some of the best known brandsincluding KitKat and Nesquik, from Russia following President Vladimir Putin’s order to invade Ukraine in February, but continues to supply basic food products on humanitarian grounds.

Julia Horowitz contributed to the report.