Miguel Patricio advised people to get used to higher food prices. Miguel Patricio, boss of Kraft Heinz also added that there is a price rise in the US for Kraft Heinz products. He said that inflation was across the board. According to the UN Food and Agriculture Organisation, the cost of ingredients such as cereals and oils has pushed global food prices to a 10-year high.
Kraft Heinz has increased prices on more than half its products in the US, its home market, and Mr Patricio admitted that is happening elsewhere too. He said that they are raising prices, where necessary, around the world.
Many countries saw the production of raw materials, ranging from crops to vegetable oils, fall. Measures to control the virus, as well as illness, limited output and delivery. As economies have restarted the supply of these products hasn’t been able to keep up with returning demand, leading to higher prices. Higher wages and energy prices have also added to the burden for manufacturers.
Mr Patricio says that consumers will need to get used to higher food prices given that the world’s population is rising whilst the amount of land on which to grow food is not. In the longer term, there is a lot to come in technology to improve the effectiveness of farmers that will help.