Rising food prices are a global problem without an immediate solution. Recently, hungry people have staged food protests in Egypt, Mexico, Cameroon, and Haiti. In this country, a Chicago newspaper reported that the average area resident should expect to pay $260 more for his or her groceries in 2008. The price of cheese, wheat, corn, and meat, is at an all-time high. The AP reports that food prices went up 23% between 2006 and 2007, according to the FAO. Grain went up 42%, oils 50% and dairy 80% during this time.
Bloomberg News reports that Morgan Stanley analysts attribute the price spike to diminished grain reserves worldwide and rising demand from China. Corn being diverted to ethanol production, drought in Australia and floods in Argentina all may play a role. According to The Economist, some Asian countries like the Philippines can’t grow enough to feed themselves, while others, like Myanmar, maintain regimes that contribute to hunger and poverty. High fuel prices only add to the overall price increase.
In the Washington Post recently, chefs and restaurateurs shared tips for shoring up narrowing margins–smaller portions, small price increases, and a creative hand with trimmings and waste–is helping restaurants stay competitive. For some Chefs Collaborative members, finding the right menu balance is becoming a trickier proposition.
Amy Scherber, of Amy’s Bread in New York City, said in the past, she used organic flour even in her conventional breads, but “when it went up from 30 cents to 68 cents,” they had to switch. “We’ve used a stone ground conventional flour for two months, and last week it went from 44 cents to 78 cents a pound, and that’s not even organic.” For a commercial bakery, “that’s staggering,” she allows, noting that their supplier’s prices have more than doubled in a year, keeping pace with wheat prices nationwide.
Scherber had to raise her prices back in November, and can’t imagine doing that again in the months ahead. “I think we’re going to have to just suck it up,” she said, expressing her hope that New York restauranteurs stand by their artisanal bakers in these tough times.
In Cranford, New Jersey, at A Toute Heure Bistro, Andrea Carbine feels protected by her diverse menu and by buying local and seasonal foods. “If something is too expensive, we just don’t put it on the menu,” she said. Her local baker has seen a price increase lately, but produce and pasture-raised lamb, beef and bison have remained fairly stable. This year looks like a good growing season, and Andrea is optimistic, even though pickups and deliveries are costlier due to higher gas prices.
Julie and John Stehling of the Early Girl Eatery in Asheville, N.C. and the North Star Diner were equally optimistic about this year’s produce. “If we can get through the next two weeks, no frost, we’ll be fine. Last year was rough, with a frost after Easter that wiped out apples, blueberries, and raspberries. This year is looking better,” John said recently.
The Stehlings have seen a significant decrease in their profit margin, and buying local “is a real balancing act, it’s tricky.” Their business is currently about 50 – 50 local, and his free-range local eggs’ prices have more than doubled in recent years. “We are comfort food. I don’t feel like we can raise our prices any time soon. I see me absorbing it,” said John.
“I’m trying my heart out to stay with the people” he’s been working with long-term, because “we do what we can to be part of the community, year after year.” For the Stehlings, it’s a question of integrity. “That’s who we are as people,” he said. As they both tell me, they got into the restaurant business for reasons other than making a profit. As John said, “I could cut corners, but then I’d probably not go home and sleep as well at night.”
