Rising agricultural inflation, or "agflation", is a global phenomenon that touches everyone, and almost every day it seems to intensify. This week, the price of prime spring wheat rose by 25 per cent on the American exchanges, while Russia and Kazakhstan announced fresh curbs on exports to protect domestic supplies.
—Sean O'Grady, "A recipe for inflation," The Independent, February 27, 2008
"What we've got is 'agflation,' because it's mostly the cost of agricultural products that is going up," said Mark Perry, professor of finance and business economics at the University of Michigan-Flint.
—Sally York, "'Agflation' busts budgets," Flint Journal, March 27, 2008
Merrill Lynch has already pegged the theme as a winner, since food companies can pass along the rising input costs, or "agflation," to consumers.
"Agflation is bad news for the consumer, already under pressure from higher energy prices," said Jose Rasco, an investment strategist at Merrill Lynch, in a recent note. "For the food companies, however, it could be good news as many companies have been able to pass along those higher costs to the end user."
—David Berman, "How food firms can benefit...pass it on," National Post, May 2, 2007