What happens when the cost of corn goes up? The price of every product that uses corn goes up as well.
Hershey, the chocolate maker, recently lowered earnings projections because of higher milk costs. So did Dean Foods, a major milk processor. General Mills and Kellogg’s have bumped up cereal prices. Marriott International, which typically sees price increases of 2 to 3 percent a year for its purchases of protein items, now expects that to at least reach 6 percent next year and perhaps go as high as 8 percent. The company buys 10 million tons of beef a year.
You would think that someone would have realized this before corn was called the cure for our addiction to oil.