Dan Haugen at MinnPost points out (via Reuters) that our local processed food manufacturer, General Mills, is concerned about the recent rise in sugar costs.
General Mills got huffy and suggested that the US may “virtually run out of sugar” which, as far as I can tell, means they’ll run out of sugar at the price they’re used to paying. That’s not exactly running out of sugar. For example, I could “virtually run out of fuel” if I arbitrarily decided that $2.00 per gallon was as much as I wanted to pay. There would still be plenty of fuel available, but I’d “virtually” run out.
Here’s the interesting part: Will rising sugar costs lead to rising prices in the middle aisles of the grocery store where you can find General Mills’ boxes of processed foods after passing by the unprocessed foods generally found along the perimeter of grocery stores? No:
In any event, analysts say, rising sugar costs are unlikely to boost prices of food products because prices for other ingredients such as grains have declined since last year.
Should we sympathize with the circumstance a locally run multinational company finds itself in, seeking discounts on raw materials used for production of processed foodstuff?