Great American Group Expects Retail Food Prices to Increase in Coming Months
Great American Group Expects Retail Food Prices to Increase in Coming Months
-Effects of drought to translate to higher prices-
WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- Analysts with Great American Group, Inc. (OTCBB: GAMR) report that overall retail food prices are likely to increase between three and four percent by year-end, which is above the historical average. Animal products such as meats and dairy items will be the first to reflect these most recent increases, with prices for processed foods rising later in the year.
In its latest Food Monitor(Inventory and Equipment), Great American Group also notes that retail food prices were impacted by continued increases in historically high commodity costs. A drought that plagued the Midwestern U.S. throughout the summer months led to high prices for corn that is used in animal feed. After reaching a high of $8.43 per bushel in August, corn prices softened in the remaining part of the year and into January 2013. Despite the recent decline, corn prices remain well above those of prior years.
"Commodity prices have been high for several months, and food retailers have been feeling pressure to pass along price increases to customers," said Ken Bloore, chief operating officer for Great American Group's Advisory and Valuation Services division. "Retail prices are expected to increase more significantly in the coming weeks and months."
In addition to the drought, commodity food prices were impacted by the consumption of corn in the production of biofuels, as well as population growth and increased energy costs. These increased costs have translated to rising retail prices, which show no signs of abating in 2013.
Great American Group's newest quarterly Food Monitor(Inventory and Equipment) with industry trends in food prices, as well as food and beverage processing equipment, is available at http://www.greatamerican.com/news_media/downloads/Feb_2013_Food_Monitor.pdf.
For more information about asset disposition, valuation and appraisal services available through Great American Group, visit the company's website at www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call 818-884-3737 or visit www.greatamerican.com.
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