Higher Food Prices, Higher Profits

As commodity prices shoot skyward—they broke through the roof a long time ago—we’ve been hearing a lot about restaurants, bakeries, and food manufacturers in crisis. But there are businesses out there experiencing an equal and opposite reaction. You guessed it: Multinational agribusiness firms are having extraordinary years.

As Marketplace reports, agribusiness giants like Cargill, Monsanto, and ADM are being buried alive in profits—Cargill’s, for example, are up 86 percent last quarter over a year ago. After a decade of increasing consolidation, only a handful of agribusiness companies control seeds, fertilizers, flour milling, you name it; as the food crisis escalates, Big Ag may start to get some decidedly bad publicity. “A real risk is for them to be equated like the big oil companies,” says a stock analyst. “Consumers were complaining about paying so much at the fuel pump. Meanwhile, these oil companies are generating record profits.” Watch this space.

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