Companies and retailers finally cut prices in response to U.S. consumer frustration and lack of cash

U.S. companies are finally taking American consumer frustration over inflation and high prices seriously. "Companies from Clorox to Kraft Heinz are finally realizing that half of American consumers can’t afford what they are selling," report Sarah Nassauer, Heather Haddon and Natasha Khan of The Wall Street Journal. 

Kraft Heinz has lower prices on several popular
grocery items.

For the food industry and retailers, having half of the U.S. population — roughly 180 million Americans — struggle to put food on the table isn't good for business, even when those businesses are making money. The Journal reports, "To appeal to cash-strapped and inflation-weary shoppers, the companies are launching smaller and cheaper products, pitching value packages and, in some cases, reversing price increases."

Companies like Target, Walmart and Coca-Cola are aiming their deals at lower-income Americans who are being squeezed by gas prices, food inflation and wages that aren't keeping up with costs. "Walmart executives said that they had lowered the price tag on 7,200 items and planned to use the company’s tariff refund to fund further price cuts."

Kraft Heinz has reduced prices on several of its staple products, including Oscar Mayer Deli Fresh products and Maxwell House coffee. It plans to "absorb about 80% of its inflation this year," Nassauer adds. The company's CEO, Steve Cahillane, told the Journal, “The consumer can only absorb so much.”

Target's lower toy prices have increased
sales. (Target photo)

Even car companies have gotten the memo. "Jeep maker Stellantis, which also makes Ram trucks and Chrysler minivans, is planning seven new cars 'under the $40,000 range,'" Nassauer writes. It's also planning for two new car models that will retail for under $30,000.

Several companies that voluntarily slashed prices are seeing sales volumes increase. Target’s successful toy department price cuts are an example. In a recent meeting, the company told investors that "it is experiencing 'tremendous growth' in its toy department, where it has introduced offerings priced at $20 or less," the Journal reports.

Inflation surged in March due to Iran war and tariffs

War-related price pressures worsened inflation in March, which the Federal Reserve was already struggling to regulate, reports Colby Smith for The New York Times.

The Consumer Price Index, or CPI, rose to 3.3% in March, making the Federal Reserve cautious of cutting interest rates. This is the highest monthly gain, 0.9%, since the post-pandemic inflation surge in June 2022.

The Consumer Price Index rose to 3.3% in March 2026. (Click to enlarge)

“Core” inflation, which doesn’t include volatile food and energy prices, rose to 2.6%, an increase from 2.4% last month, which isn’t as alarming to the Federal Reserve.

Policymakers worry that rising energy prices will “spill over into other sectors, affecting inflation more persistently,” Smith reports.

The Federal Reserve is also worried about businesses and manufacturing companies scaling back on hiring to offset rising input costs, potentially threatening the labor market, reports Smith.

The Bureau of Labor Statistics data listed below illustrates how commodity prices reacted to the war before last week's temporary cease-fire.

• International oil benchmark rose 50%, now down to 30% higher than prewar
• Gas prices rose 40% since February
• Energy index rose 11%
• Fuel oil rose 30.7% over the last month
• Other motor fuels including diesel rose 30.8%
• Airfares rose 2.7%, up 14.9% from a year prior

Excess inflation in the core goods category can be explained by recent tariffs, according to researchers at the Federal Reserve.

“Without evidence that inflation is in retreat, the Fed will likely find it hard to justify cutting rates below the current 3.5 percent to 3.75 percent level,” Smith reports. “What could prompt them to act sooner, however, is if the labor market deteriorates rapidly.” 

Report: Food and agriculture sector will contribute $10.4 trillion to U.S. economy in 2026

The U.S. food and agriculture industries will produce $10.4 trillion for the economy in 2026, backing 48.7 million jobs, reports Feed & Grain staff.

Despite rising inflation and global trade pressures, the sector makes up almost 20% of the national economy, increasing profits by $894 billion each year, according to data from the Feeding the Economy report.

Food manufacturing is the largest manufacturing sector in the country, from two million farms and ranches to 200,000 food manufacturing, processing and storage facilities. It also includes more than one million restaurants and foodservice establishments, and 200,000 retail food stores.

The economic impact of the food and agriculture sector in each state. (Interactive map via Feeding the Economy, Click here to choose your state.)

Some of the highlights from the report show the food and agriculture sector generating:

• More than $177.3 billion worth of exports
• More than $3 trillion in workers' wages
• 6.5% growth in direct employment over the last decade
• 4% yearly rise in wages and 13% rise over the last decade, surpassing inflation
• $1.35 trillion in tax revenue for federal, state and local governments, increasing 7% each year

Many rural communities rely on food and agriculture revenue as the backbone of their local economy, with wages reinvested to support local housing, healthcare, education, small businesses and infrastructure, reports Feeding the Economy. “From farm to factory and truck to table, food and agriculture's impact sustains jobs, powers commerce, and strengthens communities across America."

American consumers are worried about their energy bills, the job market and the increased cost of groceries

Americans deploy different strategies to counter grocery
costs. (Adobe Stock photo)

Between spiking energy bills and a dreary jobs market, a new poll from The Associated Press-NORC Center for Public Affairs documents the deep stress many Americans feel about their bills and future financial prospects, reports Olivier Knox of U.S. News and World Report. Along with those worries, American consumers continue to look for ways to counter the ever-increasing cost of groceries.

When asked about utility bills, 36% of poll respondents said their "electricity bills are a 'major' source of stress, and a bit more than one half – 54% – said the same about grocery costs, a little more than a year ahead of the November 2026 midterm," Knox writes.

Roughly 47% of polled adults said they were "'not very' or 'not at all confident' they could find a good job if they wanted to," Knox reports. This response marks a big increase from 37% the last time the question was asked in October 2023.

Polled responses were somewhat surprising given the U.S. economy's low unemployment numbers and healthy stock market gains. Knox adds, "But there are worrying signs, including a weakening labor market."

While many Americans express concern about the overall cost of living, most continue to battle ongoing grocery price increases, reports Christopher Kuo of The Wall Street Journal. According to the Labor Department data, since August 2024, the price of "coffee increased 20.9%, ground beef was up 12.8%, and bananas rose 6.6%. Dairy, fruits, vegetables and cereals have all become pricier."

In an effort to help stretch their food budgets, some consumers are "cutting back on purchases, stockpiling certain foods or exploring more-affordable stores," Kuo adds. Other shoppers have become choosier about what lands in their cart, while others scour sale-only items.

U.S. food costs are rising due to higher commodity prices for items like beef, along with market adjustments to tariffs. Kuo explains, "Some of these costs have been absorbed by food companies; others are being passed on to consumers."

U.S. consumers battle with ongoing high prices by foregoing splurges and focusing on money-saving strategies

Americans are worried about stubbornly high
grocery prices. (Adobe Stock photo)

Frustrated with continuously high food and staple pricing, many U.S. consumers are combating grocery store costs with money-saving tactics and spending reductions. "Consumer spending stagnated in the first half of this year, according to federal data issued last week, and the CEOs of Chipotle Mexican Grill, Kroger and Procter & Gamble, among others, are telling investors that their customers are more strapped — or appear to feel that way," report Katherine Hamilton and Natasha Khan of The Wall Street Journal. 

Eyeing an uncertain job market, ongoing inflation and anticipated tariffs, shoppers are opting to spend their dollars on "essentials and forego the extras," the Journal reports. "P&G, which sells daily-use items such as Tide, Charmin and Pantene, said it is noticing signs of slower spending across essential products, too."

Low-income and higher-income shoppers have pulled back on spending sprees to focus on making their budgets stretch further. "Americans are using up the goods in their pantry and seeking value by buying in bulk to economize or purchasing smaller packs to spend less," Hamilton and Khan explain. "At Kroger, shoppers are making more trips to the store but putting less in their carts. They are also clipping coupons again. . ."

The cost of living and worries over being able to afford it has become a common theme for many Americans. "A May poll of consumer sentiment conducted by consulting firm McKinsey found most people planned to adjust their spending in response to tariffs," Hamilton and Khan write. "Rising prices was the top concern of those surveyed, far outweighing issues such as immigration, international conflict and political polarization."

Rural communities that once enjoyed bustling shopping malls struggle to repurpose the failing properties

The Berkshire Mall in rural Lanesborough, Mass., once 
bustled with customers but has fallen into disrepair.

Rural communities that seemed lucky to have a big shopping mall two decades ago have watched the glory days of their mall fade. The communities are often left with a sprawling abandoned building, frustrated property owners and a town budget still reliant on mall property taxes.

The once-packed Berkshire Mall in Lanesborough, Mass. is a striking example of how small-town malls have declined and closed throughout the United States. "The 720,000-square-foot mall, which opened in 1988, has long been Lanesborough’s single largest taxpayer. . . . In its heyday, [it] was the place to go," reports Jim Zarroli of The New York Times. "Business had fallen off sharply by the mid-2010s. Big-box stores like JCPenney and Sears closed. . . . The movie theater went dark in 2019."

What to do with Berkshire Mall remains a problem. "As the mall sits unused, the town wants its owners, Boston-based JMJ Real Estate Holdings and its partners, to sell the property for redevelopment," Zarroli explains. "But the owners have refused, and the standoff has no end in sight."

The challenges of reinventing a mall space are more difficult and take longer in rural America. "In small towns like Lanesborough, malls are often the largest tax generator, and local officials can be reluctant to admit the big-revenue days are over, continuing to rely on that money," Zarroli writes. "They can also find themselves butting heads with mall owners, who may have different ideas about what should be done with the site."

Meanwhile, communities deal with a stretch of decaying buildings and an owner who often lives miles away. "In Maine, town officials sued the owner of the Bangor Mall, accusing it of failing to make basic repairs," Zarroli adds. "In Massachusetts, the parking lot is mostly empty. . . .Break-ins have been frequent, the police said."

The best bet is to have old mall properties repurposed or torn down, but there are obstacles. "It can take years for redevelopment to begin. In West Mifflin, Pa., near Pittsburgh, a sharp drop in business at the Century III Mall left schools, in particular, short of funds, and the owners refused to make even modest repairs, Mayor Chris Kelly said," Zarroli reports. "Century III closed in 2019 and is now being demolished. Kelly said the town was optimistic that it could redevelop the 50-acre site."

Analysis: Consumer utility bills may climb as data centers get special deals

Getty Images Plus image via The Conversation, CC

At a time when U.S. consumers are getting squeezed from all sides, the idea that average Americans may pay higher electric bills so mega-companies such as Google and Meta can get special discounts for their energy-guzzling data centers may sound unfair, but it could be true, write Ari Peskoe and Eliza Martin in their story for The Conversation.

"In our paper Extracting Profits from the Public, we explain how utilities are forcing regular ratepayers to pay for the discounts enjoyed by some of the nation’s largest companies," they write. “And [we] identify ways policymakers can limit the costs to the public."

While most utilities are sanctioned monopolies, their foundation lies in shared costs. "Splitting the utility’s costs among all consumers made perfect sense when population growth and economic development across the economy stimulated the need for new infrastructure," Peskoe and Martin write. "But today, in many utility service territories, most of the projected growth in electricity demand is due to new data centers.

When data centers are the impetus for a utility having to build more supporting infrastructure, the normal way power utilities pay for their expansion no longer works. They explain, "If state regulators allow utilities to follow the standard approach of splitting the costs of new infrastructure among all consumers, the public will end up paying to supply data centers with all that power."

A Meta data center in Louisiana provides a good example. "By our calculations, [the center will use] twice as much energy as the city of New Orleans," Peskoe and Martin add. "Entergy, the regional monopoly utility, is proposing to build more than $3 billion worth of new gas-fired power plants to meet the data center’s energy demand. … Entergy is proposing to include the costs in rates paid by all customers."

Instead of billing Meta $3 billion for its infrastructure needs, Entergy is working on a separate contract with Meta, with rates the general public won't see. Peskoe and Martin write, "Entergy has asked state regulators to keep key terms of the contract secret, and only a redacted version of its application is available online."

The fact that there are many secret deals isn't much of a secret; however, what's in the deals remains protected. "Our research, reviewing nearly 50 public utility commission proceedings about data centers’ power needs across 10 states, uncovered dozens of secretive contracts between utilities and data centers," Peskoe and Martin explain. "Unlike Louisiana, most states require utilities to submit to the public utility commission their one-off deals with data centers, but they allow utilities to conceal the pricing terms from the public."

Is anything being done to address the issue? "Many state legislatures are noticing these problems and working to figure out how to address them," they add. "Several recent bills would set new terms and conditions for future data center deals that could help protect the public from data center energy costs."

Earth-friendly tips help build awareness about sustainable consumerism

Recycling may not be as
sustainable as it's advertised.
(Photo by No Revisions, Unsplash)

People might think sustainability means recycling, growing your own food, composting, not using plastic, and buying more sustainable products.

However, Joel Hartter, a professor in the environmental studies department at the University of Colorado, told CNN that a “common misconception is that reducing plastic is just about swapping disposables for reusables,” but that most waste comes from “packaging and how products are designed and distributed.”

Carolina Gazal wrote in the article for CNN that Hartter also said many materials that are considered recyclable often end up in landfills anyway and when they are recycled it still requires “energy, water and infrastructure.”

After interviewing multiple experts on the issue, Gazal wrote that the message is clear, “Sustainability is about thoughtful, systemic change that values durability, reduction and a smarter use of what we already have.”

To start living more sustainably, Hartter told Gazal, “Look for packaging made from paper, glass, aluminum or other materials that are widely recyclable and don’t degrade in quality after one use. Skip the vague marketing language. Words like ‘eco-friendly’ or ‘green’ aren’t regulated. Instead, read the materials list and look for specific attributes: ‘100% postconsumer recycled paper,’ for example. Bulk refills, concentrates and solid-form products (like bar soaps or detergent tablets) are typically lower waste.”

Gazal said that buying in bulk can be applied to food (as in buying one container of yogurt and putting single servings in to-go containers instead of buying single servings), hygiene items and cleaning supplies. In her article, she listed these and other items she uses with links to where to find them.

The 'right-to-repair' movement continues to gain traction. Its coalition runs a know-your-rights program open to all.

Six states have passed right-to-repair laws.

Whether it's fixing a broken cell phone or a car, many Americans have been fighting for their "right-to-repair" purchased products without industry restrictions, reports Iris Kim of NBC News. Historically, manufacturers of items such as computers, cars and tractors have used copyright law to prevent consumers from seeking repairs outside of the manufacturer's "licensed or company" representatives.

As U.S. consumers became more aware of right-to-repair benefits, including cheaper and quicker repairs, more states have passed laws to "protect consumers’ ability to repair or modify their products instead of having to go through the manufacturer," Kim explains. "As of March, right-to-repair bills had been introduced in all 50 states, and 20 state legislatures are currently debating such bills."

State laws differ on right-to-repair products and allowances. "Some narrowly target automobile manufacturers while others are broad enough to cover all consumer electronics," Kim writes. "Though bipartisan federal legislation for automobile repair stalled last year, it was reintroduced last month."

The U.S. right-to-repair movement has faced staunch corporate resistance because manufacturers have capitalized on repair revenue. Kit Walsh, a director at the nonprofit rights group Electronic Frontier Foundation, told Kim, "Manufacturers will always try to figure out another means of restricting independent repair because it’s a very lucrative market for them."

The Right to Repair Coalition "runs a know-your-rights program where people can check what laws are enforced in their state," Kim reports. "If the manufacturer of a product is not in compliance with the law, consumers can fill out a form that sends a direct complaint to the state attorney general’s office."

Sales are brisk at this little-known clearinghouse that sells eggs by the billions

 ECI trade currency is eggs.
(Eggleston Farm Fresh Foods photo)

A big hot spot for egg sales isn't at the grocery store. It's at a New England clearinghouse affectionately known as the "Wall Street of Eggs," reports Patrick Thomas of The Wall Street Journal. "From an office building in New Hampshire, roughly a dozen people facilitate the trading of billions of eggs a year, a task that shapes what Americans pay per dozen at the supermarket or for omelets at diners."

Who knew? Very few. Thomas explains, "The Egg Clearinghouse, or ECI, is little known outside the industry: It operates an online marketplace that allows participants to place bids on eggs listed for sale and see the results of trades. Only ECI members — farmers and egg buyers — are allowed to trade."

Given the plummeting numbers of egg-laying hens due to bird flu deaths, the business is a seller's market. "Last year marked the company’s busiest, trading over 2.6 billion shell eggs and 39 million pounds of egg product valued at more than $600 million." ECI doesn't dominate the "broader egg market. . .but plays a crucial role in providing eggs for those in need or having trouble getting them, and how they are priced."

ECI operations are similar to stock exchanges, using eggs as their currency. It was created "as an alternative way to price and trade the commodity versus larger exchanges that operated in New York and Chicago," Thomas explains. "ECI began brokering trades in 1971 and its board was made up of industry executives including Fred Adams Jr., the founder of the largest U.S. egg producer, Cal-Maine."

The notion of egg trading is unique among food commodities which generally don't rely on "little-known exchange service to determine their value," Thomas reports. "All trades are blind, and only after a deal does ECI allow the parties to know each other’s identity."

Even as egg prices climb, American consumers continue to pay the painful cost per dozen. "Consumers on average are paying about $5 a dozen, a record high and double the price from roughly a year ago, according to the Labor Department," Thomas writes. "Demand has remained steady despite the high sticker prices, prompting some restaurants to add surcharges for egg dishes and consumers to step up purchases of liquid eggs or substitutes."

To read more about the egg "stock market," read the full story here.

Whole milk consumption shakes up U.S. dairy expectations -- only the second increase since the 1970s

Whole milk sales increased 3.2%
in 2024. (Adobe Stock photo)

After two decades of soy, almond and oat milk sipping away at cow milk dominance, U.S. consumers have turned back to an old staple. "In 2024, U.S. consumption of whole milk rose by 3.2 % — only the second increase since the 1970s," reports Julia Moskin of The New York Times. "Consumption of plant milk fell 5.9%."

U.S. consumers' views about where cow milk fits in -- or doesn't -- in the American diet have vacillated from a nutritional staple to one of many "milk" options. Last year's sales increase marks another shift. Marketing dairy expert John Crawford told the Times, "For dairy milk to be growing at all is surprising, much less by these numbers. . . .This reverses trends that have been in place for decades.”

Consumers choosing whole cow milk again is likely a combination of cultural and nutritional changes. Ten years ago, white cow's milk was considered boring and soy milk was a Starbucks darling. Times have changed. In 2025, a movie scene featuring Nicole Kidman gets an electric "jolt" when Kidman downs a glass of white milk in a cocktail bar. Moskin adds, "Other consumers have taken issue with plant-based milk's long ingredient lists. . . which health-conscious and science-skeptical Americans are learning to avoid."

Some Gen Zers are trying whole milk for the first time, with some taking to social media to share their discovery. "Peggy Xu used to post wide-ranging food content on TikTok, but it was only once she began drinking whole milk on camera that her following took off. . . . She has had to explain [milk] basics to her viewers," Moskin reports. Xu told her, "People were so curious. They don’t know what milk is anymore.”

'Purchase nothing' is one way some Americans are fighting back inflation and paying off debts

No-buy challenges can help
reduce debt. (Adobe Stock graphic)

Faced with relentless inflation, some Americans have pledged to purchase nothing and plow what they might have spent into paying off debts. "The 'no buy 2025' trend encourages people to purchase as little new stuff as possible," reports Ann-Marie Alcántara of The Wall Street Journal. "Some people make lists of specific items they won’t purchase, while others vow not to buy any non-essentials."

While no buy isn't entirely new, this year it has gained momentum beyond social media popularity. "An idea like no-buy has trended before on TikTok," Alcántara explains. "Google searches for 'no buy challenge' are up 40% year-over-year, while 'no spend challenge' searches have hit an all-time high."

Families discovered that consciously reducing luxury items quickly stacked up funds to pay off debt. Rachel Holdsworth, a part-time nurse and stay-at-home mom, "wanted to pay off her family’s $10,000 credit-card debt," Alcántara writes. "Holdsworth is cutting out hair treatments and manicures. . . . They’ve paid down $2,000 of their debt through no-buy and Holdsworth’s side hustles."

Part of no buy's appeal is that it allows consumers to feel in charge of their money while pushing back against higher prices. Analyst and part-time grocery store worker, Donavan Harnage, told Alcántara, "If I can’t control what the stores do, I can control how I spend my money." Harnage plans to nix trips to Target and give less-used online streaming services the ax.

Other consumers opt to reduce purchases by using the products they have. "People also are adhering to 'project pan,' a similar trend to no-buy that spurs people to finish all their skincare, makeup or body-care products before buying replacements," Alcántara explains. "Some are even combining no-buy with project pan."

Some U.S. consumers 'ditched' restaurants and brand products over prices, but companies aim to win them back

More than 70% of consumers believe they are being
overcharged for food. (Adobe Stock photo)

Eating out or buying groceries has gotten so expensive that some Americans have crossed restaurants and brand food items off their lists. In response to consumer rejection, food makers and restaurants are hawking special prices, improved quality and novel product packaging to woo customers back "to brands they ditched as prices skyrocketed," report Jesse Newman and Heather Haddon of The Wall Street Journal. "Restaurant chains are promoting deals . . . . Food manufacturers are rolling out more discounts and introducing new products, such as 'Star Wars'-themed Oreos."

Efforts by food companies to maintain past revenue gains while lowering prices is a corporate balancing act. Meanwhile, increasing food prices has become a political hot button. "Many consumers and politicians have said they are angry about growing corporate profits while household budgets don’t go as far as they used to," the Journal reports. "Moderators opened June’s presidential debate with a question about sharply higher costs for groceries and housing."

Food executives have repeatedly said U.S. consumers will eventually adjust to higher prices, and emphasized that despite profit increases "they did not gouge consumers and are working to keep prices as low as possible," Newman and Haddon write. "They have said that they need to maintain their profit margins to fund new products and that a number of expenses. . . surged in recent years and have remained high. . . . Still, more than 70% of consumers believe that restaurants, supermarkets and food manufacturers are overcharging. . ."

The word "value" has become restaurants' new mantra. The Journal reports, "Restaurant Brands International’s Burger King and McDonald’s kicked off limited-time $5 meal deals. Inspire Brands’ Sonic sought to one-up its burger competitors by launching a permanent $1.99 menu in July."

While some food companies opt to use lower prices to attract purchases, others are using coupons or product enhancements, such as "fudgier brownies," to get consumers to try their brand again. The Journal adds, "some food executives and analysts have warned that wooing consumers back will be a slow process or require more investments than companies anticipate."

Opinion: Farmers are working to bridge the producer-consumer divide. Here are ideas on how to do it.

GMO crops still make some Americans leery. Explaining what
they are can help create understanding. (Adobe Stock photo)

Some Americans believe chocolate milk comes from brown cows. Some think Genetically Modified Organism crops, also known as GMOs, can cause autism. While neither of these ideas is true, they are examples of how removed many Americans are from their food sources, which is something U.S. farmers are working to change, writes Holly Spangler in her opinion piece for Prairie Farmer.

Since the early 2000s, U.S. farmers have invested millions of dollars "to help consumers understand where their food comes from and how modern ag helps feed the world," Spangler explains. "To fight the agriculture disconnect, the Illinois Farm Families Coalition has produced two Super Bowl commercials, bussed moms to farms, bussed farmers to Chicago, and reminded Illinoisians that farm families own and operate 96% of all farms in Illinois, via the We Are the 96 campaign."

But as long as Americans remain uncertain about where and how their food is produced, there will be a significant degree of distrust between farmers and consumers. "A 2022 University of Minnesota study revealed that just 24% of U.S. adults have a high degree of trust in the information they receive about food production," Spangler writes. "Only 27% of all survey respondents said they had a 'very favorable' impression of U.S. agriculture and food production. . . . It’s no surprise that farmers feel misunderstood or even under attack."

How can the farmer-to-consumer information breakdown be repaired? Through connection. Spangler explains, "What really connects with consumers? Shared values. When you share that you worry about the safety of your drinking water the same way they do, they will pay attention. And when you share that you want your family to eat healthy and safe food the way they do, they will listen."

When farmers share their values, such as humane animal
treatment, they can reconnect with consumers. (AS photo)

Even when connections can't be immediately forged, Spangler says, "There's still plenty to talk about. . . . Like, explaining the science behind GMO crops and how they don’t cause cancer, autism, allergies or gluten intolerance. . . . Arm yourself with good news. I often think back to farmer Mike Martz telling a group of Chicago women about the healthy and unhealthy fats in steak. 'The fat in the marbling is actually monounsaturated fat. That’s the healthy fat, like olive oil. We call those flecks of flavor!' Martz said. The unhealthy fat? That’s the thick white stuff on the outside that you usually cut off."

Bring the facts and be ready to have a conversation. Spangler adds, "Statistics don’t change people’s minds. People change people’s minds."

The U.S. needs 7 million more houses, but who will build them? The construction industry needs trained laborers.

Photo by Arron Coi, Unsplash

As the construction industry struggles to meet the demand for new housing, it faces big obstacles, including a shortage of trained labor. Robbie Sequeira of Stateline reports, "The U.S. construction industry lost nearly 30% of its workforce during the Great Recession of 2008 and had barely recovered before the Covid-19 pandemic hit it again, as outlined by a study shared last spring by economists at the University of Utah and the University of Wisconsin. . . . However, the authors attributed much of the shortage to the federal Secure Communities immigration crackdown of the Obama administration."

An estimated 7 million more homes are needed, so the industry must find more trained workers to meet demand. "Employment isn't growing fast enough, said Erika Walter, director of media relations for Associated Builders and Contractors, a national industry group," Sequiera writes. "An analysis released earlier this month by the group found that at the end of November, there were about 459,000 job openings in the industry. The 5.4% job opening rate was the highest since 2000."

To attract new labor, the industry needs to address its hiring practices. Sequeira reports, "According to a 2022 Department of Labor report, many apprentice programs for construction and trade-based skills often have sponsors who do not recruit or hire individuals from underrepresented groups — and may not even be aware of how to recruit members of those groups."

If recruitment and training shortages aren't managed, the shortage will intensify as aging workers retire. Sequiera notes, "More than 1 in 5 construction workers are 55 and older, and much of the workforce will be retiring in the coming decade, according to the Bureau of Labor Statistics." Karl Eckhart, vice president of intergovernmental affairs for the National Association of Home Builders, told Sequiera, "We need to expedite the [recruitment and training] process so we can at least get shovels under the ground."

Several states are intervening to assist in training a new construction workforce, including Montana, New York, Ohio and Maryland. "Ohio Republican Gov. Mike DeWine announced that 35 Ohio high school programs would receive almost $200 million in grant money to expand training facilities in areas including the electrical trades, welding and carpentry," Sequiera reports. 

U.S. consumers throw away 90 billion pounds of food a year; confusion over expiration dates is a big reason

Wall Street Journal graph, from ReFED Food Waste Monitor data

Food-safety people hate "best by" food labels because consumers mistakenly think once a product is past the date, it's longer safe to eat, which wastes tons of decent food, reports Josh Zumbrun in his opinion for The Wall Street Journal. "Food experts broadly agree that the expiration dates on every box of crackers, can of beans and bag of apples waste money, squander perfectly good food, needlessly clog landfills, spew methane and contribute to climate change." No oversight body regulates product "best by" labels. Martin Wiedmann, a professor of food safety and food science at Cornell University, told Zumbrun: "Those dates are not about safety, that's not why they're there, that's not what they're doing. . . For many foods, we could completely do away with it."

Most date labels on food don’t claim that anything is
expiring or unsafe. (Photo by Alexander Cohn, WSJ)

What are they for? "The dates originated as a coded system for manufacturers to communicate to retailers when to rotate stock," Zumbrun explains. "Consumers clamored for information on the freshness of food, and in the 1970s and 1980s consumer-facing dates became widespread, though never standardized. . . . Food manufacturers have tried, largely in vain, to explain that these are mostly general indicators of when food is at its peak quality. Most foods, properly stored, remain edible and safe long after their peak. . . . This misunderstanding is one reason Americans waste a colossal amount of perfectly good food. The Department of Agriculture has estimated that 31% of the available food supply goes uneaten. . . . Retailers discard 43 billion pounds of food annually, consumers a further 90 billion."

Andrew Harig, vice president at the Food Industry Association, a Washington trade group representing food retailers and producers, told Zumbrun, “It’s intended as a sort of consumer guide to be helpful. It’s just that it morphed into less of a guide and more of a rule, and that’s one of the challenges. Food technologists and food-safety people, they absolutely hate these labels.” Zumbrun reports, food-safety experts prefer using just two labels: "'Best if used by,' which indicates the product might not taste quite as good after that date but is still safe, and 'Use by' for those cases where the food might actually be unsafe, such as meat from the deli counter."

"U.S. consumers are wildly confused about the labels’ intent. In a 2019 paper, researchers at Johns Hopkins University and Harvard University found 84% of consumers threw out food at the package date 'at least occasionally' while 37% did so always or usually, though that wasn’t what most labels recommended. Over half thought date labeling was federally regulated, or were unsure," Zumbrun adds. "In fact, with the exception of infant formula, the labels aren’t federally mandated and the food isn’t unsafe. Safety concerns usually arise from food that is contaminated or improperly stored. If you care about food safety, Wiedmann advises you to ignore 'best by' dates and just set your refrigerator no higher than 37 degrees. Keeping food too warm is a real safety risk that has nothing to do with an expiration date."

Some farm groups object to proposed merger of Kroger and Albertsons, saying a bigger grocer will hurt small farmers

The planned merger of grocers Kroger and Albertsons "has farmers and farmworkers worried about its negative impact on farms and rural communities," reports Shelby Vittek of Ambrook Research. The National Family Farm Coalition, the National Farmers Union, Farm Action and an assortment of regional grower associations "sent a letter to the Federal Trade Commission expressing their opposition to the merger, which they said would 'create a new mega-grocery buyer with exceptional buyer power to squeeze its suppliers, shrinking farmers' and workers' share of the food dollar.'"

The merger, which could "cause conflicts with overlapping markets — Western Growers, the California Fresh Fruit Association, and Colorado Fruit & Vegetable Growers Association — submitted an additional letter to the FTC," Vitteck writes. "In it, the groups pointed to the Albertsons' acquisition of Safeway in 2015 — after which the company awarded contracts only to its largest produce suppliers, leaving smaller farmers to sell elsewhere — as an example of the negative outcomes that can be expected with a merger of this size." Their letter sums up the possible purchase: "The buying power of the newly combined Kroger entity cannot be understated."

Small farmers are already struggling to compete for sales to larger chain groceries. Vittek reports, "Farmers routinely sell their crops for less than what it costs to produce them. The pressure of farming with such small margins has led 'members to farm less acreage, move production to other countries when feasible, or leave farming altogether,' the letter from the Western grower groups read. If the Kroger-Albertsons merger is allowed to continue, competition among buyers will shrink, leaving farmers with fewer customers (in this case, grocery retailers) to work with."

American farmers face large-chain "take it or leave it" bargaining tactics, which can erase their profits, alongside competition from foreign growers. "The trade organizations that oppose the merger emphasize the harm done to American farmers as grocery retailers continue to source more foreign producers, who are ready, willing and able to undercut American producers on operating costs and the price they will accept from the retailer. . . . That is harmful for farmers, farmworkers and rural communities that depend on a robust agriculture industry.'"

The merged grocer would have 710,000 employees in 48 states, a workforce some would say already suffers from corporate greed. "Profiteering stands out at Kroger and Albertsons, with profits far outpacing worker wage growth or the cost of food," wrote Daniel Fleming and Judy Wood in a CalMatters op-ed. "Their outsize price hikes are at least partially responsible for inflation. Even while they were competing with each other, these companies jacked up prices and had record profits."

The Federal Trade Commission "is in no rush to approve the merger" because grocery prices are a big part of inflation, "a hot topic political issue that Republicans have pressed against President Biden," Thomas Lee reports for The Street.

Supermarket costs still grating away at pocketbooks; it's unclear if prices in 'the center store' have finally peaked

Illustration by C.J. Burton, WSJ

Once you rejoice over cheaper lettuce and pork chops, going to the grocery store remains joyless. "Some prices [are] closer to normal levels. Prices, though, are stubbornly rising for what retail and food executives call 'the center store'," reports Jesse Newman of The Wall Street Journal. "The middle of the store stocks items that can sit on shelves without going bad quickly, from cereal to cookies, paper towels to dish soap—all essentials that consumers can't really put off buying. Prices for potato chips rose an average of 17% to $3.05 per package for the 52 weeks that ended May 27, compared with the previous year, according to NielsenIQ, a market research firm. Mayonnaise increased 23% to $4.93 per container. Applesauce jumped 22%."

Meme via thedigitalmomblog

While there are hundreds of internet memes poking fun at high prices, there are a lot of frustrated consumers out there canceling "all the fun things" to pay for groceries, reports Carmen Reinicke of CNBC. Newman adds, "The persistent price increases for pantry staples are weighing on consumers and limiting their spending on other goods and services needed to power the American economy as people prioritize buying food and other necessities. Two major industries—retailers and producers of consumer packaged goods—have been locked in a power struggle, with retailers throwing their muscle at suppliers to control prices, and suppliers trying to restore or protect their profit margins."

As retailers and producers wrestle, consumers caught in the balance may wonder why mayo is so expensive, but the price of eggs has leveled out. "Kroger CEO Rodney McMullen said that price increases for packaged food tend to outlast those for fresh foods like fruits, vegetables and meat because processed products often have longer and more complex supply chains. Produce, by contrast, can be delivered from fields to stores in just a few days," Newman reports. Big grocers say they're "resisting further price increases from the nation's packaged-food giants or pushing for lower prices—but the process is taking longer than they had hoped."

Families are finding ways to ease the wallet crunch by "increasingly turning to cheaper versions of packaged groceries, while food companies' costs have simultaneously begun to ease. As a result, food-industry analysts say, price increases for packaged food have likely peaked," Newman writes. But higher prices have remained a consistently painful reality. "Since the beginning of 2019, prices for goods sold in the middle of the grocery store have risen by nearly a third, while products on the perimeter have increased roughly 22%, according to Circana Group, a market research firm."

"Lanise Abbott, a postal worker who lives near Chicago, said rising prices for items such as canned fruit and vegetables, bread and cereal have her scouring supermarkets for discounts and switching to cheaper food brands," Newman reports. "She said she would also visit food pantries if it becomes necessary." Target's store-brand sales are growing almost twice as fast as national brands, the chain's chief food executive, Rick Gomez, told Newman: "The number one thing that is on our guests' minds is affordability."

Stagnant demand, lower exports, higher production costs create 'worst financial times for pork producers in 25 years'

Storm Lake Times Pilot photo

Overproduction and high costs are tanking the pork industry, but "the glut of pork on the market has yet to translate into lower prices for consumers," reports Patrick Thomas of The Wall Street Journal. "Hog farmers in the U.S. are being squeezed and even driven out of business as they lose money at their worst rate in decades. Meatpacking companies, including Smithfield Foods, Tyson Foods and BSJ, said pork profits are shrinking, leading some in the industry to scale back operations ranging from hog farms to processing plants."

Tom Cullen of the Storm Lake Times Pilot in Iowa reports, "Hog prices at all levels have decreased. Prices for pigs six to eight weeks old have slumped by 80% since last fall, suggesting a contraction is on the horizon. Production costs have increased 50% in two years. . . . California's Proposition 12 could force producers to invest millions into new confinements, creating space for sows that previously couldn't stand up, turn around and extend their limbs. The state law is expected to take effect July 1." Lee Schulz, an Iowa State University Extension livestock economist, told Cullen that these are "the worst financial times for pork producers in 25 years."

Dwight Mogler, an Iowa family farmer with "more than 200,000 hogs, told Cullen his operation 'won't exist' if market conditions persist." Cullen writes, "Mogler is losing $30 to $40 per head on each hog he sends to market. He believes he will sell half as many hogs in 2024 as this year. Mogler told Cullen: "This could very well be the biggest event of consecutive month-to-month losses the industry has seen. And there's no light at the end of the tunnel. . . . We will not exist as a farm if this doesn't get remedied."

The problem has built up over several years, and the remedy will take some time. In 2018, China's pigs were "devastated by an African swine fever outbreak. . . . Exports from the U.S. hit a record 7.3 billion pounds in 2020, according to federal data. In 2022, U.S. pork export volumes fell 10% from the year before as China began rebuilding its hog population," Thomas reports. "With less U.S. pork shipped overseas, more remains at home, where demand has stagnated. . . . Shane Smith, chief executive of Smithfield, the biggest U.S. pork producer, said the end of pandemic-era food-stamp benefits earlier this year also has cut into U.S. shoppers' pork purchases."

"As companies up and down the supply chain grapple with lowering demand, production costs will remain the same. Wages at meatpacking plants have increased substantially since the Covid-19 pandemic," Cullen reports. "Feed costs, which are derived from commodity prices, have increased. Fuel costs are also up." Schultz told Cullen: "The costs for producers . . . they're here to stay. You account for labor, interest rates, fuel, feed, and production (costs) will remain relatively high."

Proposition 12 will change the pork industry. Cullen writes, "Prices inside California, the largest consumer of U.S. pork, are expected to rise while decreasing in every other state. . . The long-term implications of the law cannot be estimated. Schulz said producers that can afford to make the shift to comply with Proposition 12 will be paid a premium for what is perceived as best animal-welfare practices. The question is whether those premiums can pay for new investments amortized over 15 to 25 years."

Lab-grown dairy products might be tasty and resolve some environmental concerns, but their success is not certain

A child pours Cowabunga brand 'animal-free dairy beverage' made
with Perfect Day enzymes. (Photo: Carolyn Fong, The Washington Post)

A reporter's lunch line-up: "Celery root soup lush with whole milk, spice cake topped with maple cream cheese frosting and ice cream, and then a latte with its fat cap of glossy foam. In all, a delicious lunch. Maybe a little heavy on the dairy," writes Laura Reiley of The Wasington Post. "Only this dairy was different. It was not the product of a cow or soybean or nut. The main ingredient of this milk was made by microbes in a lab, turned into tasty and recognizable food, and then served to a hungry reporter."

How is that possible? "Single-celled yeasts are doing the work of 1,500-pound cows . . . Lab-grown meat is coming, but lab-grown dairy has already arrived. . . . Dozens of companies have sprouted up to develop milk proteins made by yeasts or fungi, including Perfect Day, a California-based dairy company. The companies’ products are already on store shelves in the form of yogurt, cheese and ice cream, often labeled 'animal-free.' The burgeoning industry, which calls itself 'precision fermentation,' has its own trade organization, and big-name food manufacturers such as Nestlé, Starbucks and General Mills have signed on as customers."

Precision dairy began with an unsavory breakfast. Reiley reports, "For Ryan Pandya, chief executive of Perfect Day, it really started as a bagel problem. Pandya told Reiley, “I had a bagel with vegan cream cheese that was so bad that it led me to investigate. . . . A lot of dairy alternatives are not made of food.” Reiley notes, "He hit upon a process called precision fermentation, similar to what has been used for decades to brew beer, make insulin for diabetic patients or produce rennet for cheese. . . . Beyond the fermentation process, making usable milk proteins is similar to that at regular cow dairies."

Precision dairy has several benefits. It does not contain cholesterol and does not involve cattle, which are "said to be the No. 1 agricultural source of greenhouse gases worldwide," Reiley writes. "Consumers concerned about climate change or animal welfare have been anticipating the U.S. launch of cultivated meat. . . . but cultivated dairy could have just as much of an impact on the environment — with fewer regulatory hurdles to clear."

Cow and plant dairy are already battling for market share, and adding precision dairy will intensify the competition. "Traditional cow dairy has pushed back against plant-based milks using words like 'milk' or 'cheese' in a series of largely unsuccessful lawsuits," Reiley reports. "The Food and Drug Administration said that oat, soy and almond drinks can keep the word 'milk' in their names, but squabbles around precise language will likely recur when more of these precision dairy products reach the market. . . . Plant-based milk companies also may not welcome the competition, especially if cultivated dairy products are positioned as more sustainable and less resource-intensive."

Precision dairy has obstacles. "The industry is also likely to run up against Americans’ increasing discomfort with processed food," Reiley writes. "Recent declines in plant-based meat sales are a cautionary tale. And the regulatory path ahead is not assured for this fledgling industry."