Specialty food maker Premium Brands Holdings Corp said its quarterly earnings fell 26 percent as expenses rose and it expects beef and other commodities to remain costly for a year at least.
The company, which operates in retail and food service segments, said commodity costs are expected to remain at historically high levels till the fourth quarter of 2011 due to short supply.
Food prices have soared as consumers in emerging economies have grown richer and erratic climate conditions have hurt supplies. Wheat prices have surged 60 percent this year, and restaurants have also been hit by increases in beef, cheese, cooking oil and produce costs.
Premium Brands said prices will go up in its retail segment, which sells products such as processed meat, meat snacks, sandwiches, deli products and baked goods, from the second quarter.
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