The soaring price of food was often in the news in 2007, and we are not immune. We have been looking at our accounts, and it is impossible to miss the fact that many of our main ingredients, including milk, cream, and eggs, have risen as much as 30% within the last calender year.
While this is good news for farmers, who have seen generally declining prices up until recently, it is not good news for consumers. ItÂ is inevitable that we (like many other food companies) will be forced into a price increase to counter our rapidly shrinking margins.
What’s interesting is that the price disparity between organics and conventional foods, although still substantial, has shrunken somewhat. With a litre of local, regular milk now an amazing 1.24 in our local supermarket, we have discussed whether we should switch to organic milk for our coffee drinks. Organic milk costs more, of course, and we would have to pass that on.
Would such a move be a good idea? We all know that organics is a good thing, but how much extra would you be willing to pay for a cappuccino or latte made with organic milk?