"Supply Chain Challenges and How It Impacts Our Business"

Blog post via Co-op Food Stores

"We get a lot of good questions about rising food costs, the topic of an excellent blog post by our merchandising manager earlier this month. It's a multifaceted problem, and here is one of the little-known reasons behind it: the rising cost of fertilizer.

Fertilizer accounts for more than 30 percent of a farm's operating costs, and over the last several years fertilizer prices have skyrocketed for all major U.S. field crops—even before the war in Ukraine crippled supplies. The USDA projects that fertilizer prices will continue to rise, perhaps as much as 5 percent this year. Not only does this make it difficult for farmers to remain competitive in global markets, but the rising costs are often passed on to consumers. 

The Takeaway? As we like to point out, everything is related. It's tempting to attribute high food costs to one simple reason, but many things are contributing factors, including weather, war, workforce shortages, supply chain disruptions, and now potential new tariffs on nitrogen fertilizer. 

So What's a Consumer to Do? As always, we recommend reducing food waste to stretch your grocery budget further. Shop smart, eat what you buy, and make good use of leftovers."

Read the full blog post here