Processing Magazine

Food processors to reap benefits of cheaper grain prices

April 18, 2012

CHICAGO — Food processors are expected to benefit from cheaper grain prices this year as retail prices continue to rise, MarketWatch reported.

According to the report, flattening prices for grains, particularly wheat, should boost margins as companies look to grow profits rather than pass on savings to consumers.

Packaged foods wholesalers such as General Mills and Kellogg will reap the benefits of cheaper grain prices.

Past performance indicates that wholesale prices to retailers will continue to rise by 2.5 percent to 3 percent, and this is expected to relieve stress on processing margins.