Small businesses, consumers cooked by rising food prices w/ link to learn more about the history of food prices

By Melissa Dunson

mdunson@joplinglobe.com

WEBB CITY, Mo. — Carlos Rivera’s arms get less of a workout at the grocery store these days, but his wallet has to do twice as much heavy lifting.

“You used to carry your groceries in two hands, but now it only takes one hand, and I spent the same amount of money that I used to,” Rivera said. “I used to spend $155 a week on groceries for my family. Now it’s $190, and it’s not even the same amount of groceries.”

Rivera is one of millions of Americans struggling with soaring food prices.

The Congressional Research Service recently reported that food prices rose 4 percent last year, but that higher prices could be on the way. The price increase for food last year was the highest since 1990, according to the report.

The U.S. Department of Agriculture is predicting that food prices will go up another 3 to 4 percent this year, while cereals and bakery goods could jump as much as 6.5 percent in 2008.

Rivera faces the price increase on every front. He not only pays more for his own family, but as the owner of The Donut Hole in Webb City, he said he is scrambling to find ways to alleviate his rising costs without passing it on to consumers.

So far, he said, it’s not working.

“We used to sell a glazed doughnut for 44 cents, now it’s 58 (cents),” Rivera said. “I don’t have any choice. I have to make up for the bite (food prices) are taking out of my budget by raising the prices on the donuts.”

Rivera got a 15 percent price increase in September for all of the ingredients from his supplier. In the last year, Rivera said his cost for shortening,

which he buys in bulk, nearly doubled, going from $21.50 to $41.08 while creamy vanilla, which he also buys in bulk, jumped from $15 to $22.62.

Rivera has been in business for 26 years and said he can only hope prices go back down.

Year-to-year rise