When the COVID-19 pandemic hit last year, many businesses were forced to halt their services. People started buying surplus cleaning supplies and food because no one knew how long the pandemic would last.
Since more people were working from home, that increased the likelihood of more meals getting cooked. As a result, food prices have gone up since there’s more of a demand for food.
No longer are the days where you can spend less than $50 on your family grocery bill. Prices are only going to go up.
In this article, Land Income will be discussing different factors affecting your food bill and tips to help you reduce the costs. Continue reading to learn more.
Key Factors that Are Impacting Your Grocery Food Bill Price
When we go grocery shopping, we usually write down our shopping lists before leaving the house to make sure we don’t forget anything. We’ll also make sure that we have our coupons and other discounts to reduce the overall bill cost.
However, even with all that planning, it’s hard to combat grocery prices that are going to rise consistently. But why are the prices rising? Let’s dive a little deeper.
Raw Material Prices are Soaring
Consumers don’t think about raw materials when they’re going grocery shopping. They want the finished product to put in their shopping baskets and take home to feed their families.
However, that is becoming increasingly difficult since raw material prices keep going up. The Bloomberg Commodity Spot Index tracks 23 raw materials which have the highest prices in about a decade.
More businesses are trying to offset their high labor and transportation costs, which trickles down to the consumer. Since raw materials are involved in offsetting these costs, prices increase as companies look for other ways to get goods to customers.
Import Demand from China
Another reason why food prices are rising is because of China’s demand for imported goods. The Chinese middle-class has been growing at a consistent pace over the last few years, resulting in more people demanding high-quality food.
By being exposed to international trends, people are yearning for better quality food now that they’re aware of its existence. Furthermore, with the onset of the pandemic, more people started buying their goods online, leading to increased demand.
Adverse Weather Conditions
Growing foods for consumers to eat is an art form that isn’t genuinely appreciated in today’s times. There’s solid preparation that goes into consumers getting their goods. But sometimes, the weather doesn’t allow for good growing seasons, affecting production.
Occasional weather disruptions aren’t too bad. However, the problem is climate change. Global temperatures are shifting worldwide and creating issues with food production. As a result, prices go up because of the increase in labor, water, pesticide soil amendments, and farm method changes.
The main culprit in the current rise in food prices is the COVID-19 pandemic. It forced labor shortages and encouraged social distancing, which meant that customers were no longer coming into stores to buy their food.
Also, as prices in other sectors like gas began to rise, it led to increased food prices since commodities across the board were affected by the pandemic. However, this isn’t the only effect that COVID-19 had on consumer shopping.
Customer shopping expectations changed drastically too. Businesses had to install plexiglass screens, floor markings, and hand sanitizer stations to ensure that their customers were safe while shopping.
Those store adjustments aren’t cheap and will have to be continued for quite some time as society slowly recovers from the pandemic. Unfortunately, for stores to recoup the money made on those adjustments, food prices had to be raised.
Tips for Slashing Your Grocery Bill Price
You now understand the reasons why your grocery bill looks a little high after each shopping trip. Consumers don’t want to spend most of their paycheck to eat. So here are some tips to help you cut down your bill.
1. Look At How Much You Currently Spend
When you’re grocery shopping, consider shopping at only one store. You may pay extra for certain items, but it saves you from going to multiple stores looking for the best deals.
However, in the long run, that can be detrimental to your pocketbooks. So it’s essential to track how much you currently spend while shopping.
You can start by thinking about how much free time you have to cook. Once you figure that out, buy foods that you can cook in bulk, so you don’t have to spend extra time and money preparing meals. Learn to freeze the extra for a future meal.
2. Create an Inventory
Have you ever wondered how many times you went to a grocery store, picked up an item, and then got home and saw the exact product you picked up? That’s probably happened more times than you can count. It’s also wasted money.
To avoid this, write down products that you use often and ones you don’t. Toss out anything that you don’t use and only buy the things you need. If you don’t want to toss anything out, try researching recipes to use those ingredients so you don’t waste money.
Also, keeping a grocery list of items to buy on the refrigerator ensures you have an accurate list to use next time you shop.
Check out the multitude of crops you can invest in with Land Income!
3. Compare Prices
Everyone has that favorite grocery store. But as food prices increase, your favorite store may change as you look for lower prices.
Don’t be afraid to compare food prices in grocery stores. It may seem challenging, but you may find some deals in other stores that are cheaper than what you’re paying now.
Plan Ahead to Minimize A Costly Grocery Food Bill
If you want to cut costs on your grocery bill, it’s essential to plan ahead. You’ll save so much money and be able to combat high grocery prices.
Food will always be important to society, which is why we need to make sure the right investments are made to ensure high-quality products. Investing in food will be safe, and you’ll get consistent solid returns. There’s no reason to settle for anything less.
If you want to learn more about farmland investing and its importance to the U.S. and global economies, contact Land Income today!