Rising food prices influenced by several factors

What is influencing the increase in food prices and what can be done about it?

Rising food prices influenced by several factors

a wall of hydroponically grown lettuce

A confluence of global events and circumstances have some experts painting a grim picture for populations that already face food insecurity.

Recent spikes in food, fuel and fertilizer prices could lead to “destabilization, starvation and mass migration on an unprecedented scale,” said David Beasley, head of the U.N. World Food Program.

A recent U.N. analysis shows that “a record 345 million acutely hungry people are marching to the brink of starvation.” That’s a 25-percent increase from 276 million at the start of 2022, before Russia invaded Ukraine in late February. The number stood at 135 million people before the COVID-19 pandemic in early 2020, according to an ABC News article.

The war in Ukraine is having a continuing ripple effect on the global food supply. Russia and Ukraine together export 28 percent of fertilizers made from nitrogen, phosphorous and potassium, according to Morgan Stanley. The limited global supply has sent prices into the stratosphere — in some cases doubling the cost — and there are fears that high costs or the lack of availability will result in farmers using less fertilizer, leading to lower yields of commodities that are already constrained. 

In early July, the Consumer Price Index report from the Bureau of Labor Statistics said that food prices in the U.S. increased 10.4 percent from June 2021 to June 2022.

Rising costs for any critical ingredient for running a farm — water, labor, fuel or fertilizer — translate to higher food prices. And when all four hit at the same time, disruption ensues, to the detriment of consumers, especially those who were already hanging on by a thread.

In all, worldwide experts fear crop yields will drop by 10-30 percent, and developing countries will be hardest hit.

The prevalence of “undernourishment” — when food consumption is insufficient to maintain an active and healthy life — continued to rise in 2021. The U.N.-commissioned report, “The State of Food Security and Nutrition in the World,” estimates that between 702 million and 828 million people faced hunger last year.

A grain shortage stemming from the Ukraine conflict is also driving up the cost of basic foods and other commodities, and corn and wheat are not getting out to the market because the Black Sea is closed. To top it off, drought conditions are crippling agricultural operations in several regions known for high output. 

There’s a dearth of issues to navigate. But as The Shelby Report points out, crises stoke innovation. Agricultural adaptation is being employed, including the use of hydroponic container farms housed in upcycled shipping containers. The controlled-climate farms allow for uninterrupted, decentralized growing year-round and provide a stable environment to ensure reliable yields. Smart irrigation systems are being used more than ever, and data is driving decision-making at unprecedented levels in order to maximize available resources. Responses to climate change vary by location and commodity. Learn more about how the USDA is assisting food producers.

FarmBox Foods makes appearance on ‘Good Morning America’

Good Morning America visited FarmBox Foods’ headquarters to explain how businesses and nonprofits are using technology to sustainably grow food near the consumer year-round.

GMA Visits FarmBox Foods to Talk ‘Farming Without Harming’


Good Morning America

Good Morning America visited FarmBox Foods’ headquarters to learn how businesses and nonprofits are using technology to sustainably grow food near the consumer.

ABC News Chief Meteorologist Ginger Zee spoke to FarmBox Foods CEO Rusty Walker June 20 about the company’s mission to build high-tech indoor farms that provide food security year-round for those without reliable access to nutrient-dense food. 

(Watch the GMA appearance here)

Zee also interviewed representatives from two FarmBox Foods customers, Natural Grocers® and Centura Health, about their use of Vertical Hydroponic Farms, which provide a hyperlocal source of fresh produce while reducing environmental impacts and unpredictability associated with traditional farming. The farms are housed inside upcycled, insulated shipping containers that are outfitted with plumbing, electrical and sensors to control conditions inside.

By growing food on site, the companies that use FarmBoxes are avoiding supply chain disruptions, reducing food sourcing costs, improving access, and helping to eliminate food waste because the veggies get to the plate much quicker. 

 

The controlled-climate container farms provide a perfect growing environment for the plants and shield them from weather and climate impacts, including drought, heat waves and flooding.

 

Natural Grocers is growing organic lettuce behind its store in Lakewood, Colo., mere steps from the display case, and plans to expand the program elsewhere. Centura Health, meanwhile, owns three Vertical Hydroponic Farms and uses them to produce food for hospital patients and visitors, and to provide nutritious produce to food banks in the communities they serve.

Adaptation Key to Stabilizing Food Prices

Every consumer knows that sticker shock at the grocery store is now a common occurrence.

Food price increases this year are expected to far exceed those observed in 2020 and 2021, according to the USDA’s Economic Research Service.

Every consumer knows that sticker shock at the grocery store is now a common occurrence. 

Food price increases this year are expected to far exceed those observed in 2020 and 2021, according to the USDA’s Economic Research Service.

Supply chain delays caused by, among other things, pandemic-related shutdowns, a truck driver shortage and a logjam at our nation’s ports were already causing issues with the U.S. food supply. Then, Russia’s invasion of Ukraine caused a ripple effect that we still see playing out globally. It has impacted fuel prices, food exports and the supply of fertilizer needed to maintain food production levels in places like Brazil, a top producer of goods like sugar and soybeans. Even avian flu is affecting the price of eggs and poultry.

The Consumer Price Index for all food in the U.S. increased 1 percent from March 2022 to April 2022, and food prices were 9.4 percent higher than in April 2021. 

It’s an inescapable phenomenon that’s disproportionately affecting those who were already struggling to feed their families. So when will it end? There are, of course, differing opinions on when or even if food prices will level out anytime soon.

The cost of fresh vegetables is expected to go up by 4.3 percent this year, the USDA says, a point that underscores the need to decentralize the production of certain veggies. Hyperlocal production of nutrient-dense food can help control costs, primarily because it eliminates fuel price fluctuations and supply chain delays from the equation. It also helps reduce the rate of food loss, because the veggies make their way to the fridges and plates of consumers much more quickly.

Having a localized level of control takes the power away from negative external influences, and places the power back in the hands of urban farmers, who can nimbly grow at scale using a combination of greenhouses, outdoor community gardens and containerized, tech-assisted farms. A container farm takes up 320 square-feet of space — or about 5 parking spaces — and can be placed anywhere there’s a reliable water supply and an electrical hookup.

Businesses that serve underprivileged communities can come together in the name of food security and provide these food production systems that operate in perpetuity and provide jobs and educational opportunities in the process. Although veggies comprise only a portion of the food consumed in America, it’s incremental changes like this that can move the needle in a direction that eases the burden on consumers.

FarmBox Foods Launches New Tagline, Slogan and Company Values

FarmBox Foods has established a set of core values to guide existing and future relationships, and created a tagline that captures the company’s focus on innovation.

FarmBox Foods, a Colorado-based manufacturer of high-tech container farms, has spent the last four years developing proof of concept in multiple industries by helping people grow gourmet mushrooms, leafy greens, culinary herbs, peppers, small tomatoes and trees. The mission-driven company is focused on helping partners feed those living in food deserts while empowering local communities and providing jobs and educational opportunities.

The new slogan, “Farm Anywhere,” encapsulates in two words what the tech-driven farms allow users to do, and the new tagline, “Innovating to Feed the World,” captures the spirit of FarmBox Foods’ goal of continued improvement in creating the tools that provide communities with a reliable source of nutrient-dense foods, regardless of the time of year or their location.

The company’s revised vision hones in on its core beliefs.

“We believe that no one should go hungry. We see a world where everyone has access to a sustainable source of healthy, locally grown food.”

FarmBox Foods’ newly established company values represent how the organization has conducted itself since its inception, and how it will operate going forward both internally and externally. The values are meant to convey to current and future partners what the company stands for and why.

  • ●  Relationships – The way we connect with people guides everything we do. Our values stem from our conscious commitment to help feed the world.
  • ●  Purpose – We intentionally operate with faith, selflessness, and service to others. We find meaning in making a difference in the world. Our foundation is built on our belief in “values over profit.”
  • ●  Loyalty – Our partners trust us to do the right thing every time. We show up in our relationships with integrity, vulnerability, and honesty.
  • ●  Compassion – We strive to understand the diverse needs and strengths of the communities we serve by continually learning, listening, practicing empathy, showing humility, and expressing gratitude.
  • ●  Determination – We are committed to customer focus through hard work and discipline. We’re passionate about helping others transform their communities through continuous innovation that creates a foundation for food security.
  • ●  Mentorship – We believe that trust, accountability, and initiative are pillars of a successful team. We make time for people and cultivate an environment where we’re all leaders and learners.

Go to www.FarmBoxFoods.com/company-values to learn more. 

Fighting Back Against Hunger and Improving Food Access

“The world is at a critical juncture.”

That’s the headline of an article about the state of food security and nutrition in the world. In painstaking detail, the Food and Agriculture Organization at the United Nations uses the article to describe how the number of people affected by hunger globally increased in 2020 due to the COVID-19 pandemic. 

It estimates that between 720 million and 811 million people faced hunger. If you go with the middle of the projected range — around 768 million — 118 million more people faced hunger in 2020 than in 2019. How does this happen and what’s being done about it?

The Food and Agriculture Organization at the United Nations says that unless bold actions are taken to accelerate progress, especially actions to address major drivers of food insecurity and malnutrition and inequalities affecting access to food, hunger will not be eradicated by 2030, as the U.N. had hoped.

After remaining virtually unchanged from 2014 to 2019, the prevalence of undernourishment climbed to around 9.9 percent in 2020, from 8.4 percent a year earlier, the article says.

According to FoodBankNews.org, all of this activity is happening against a backdrop of heightened emphasis on nutrition from the USDA, which in mid-March released a report outlining its commitment to nutrition security (in addition to food security). The USDA noted the importance of nutrition in fighting diet-related disease, which is a leading cause of illness in the U.S., accounting for more than 600,000 deaths each year, or more than 40,000 each month.

Sadly, the pandemic continues to expose weaknesses in our food systems, especially when it comes to access. New farming practices, including controlled-environment agriculture, are increasingly being recognized as a potential solution to fill the gaps and avoid supply chain delays entirely. 

Strategically placing container farms in and around population centers could have a dramatic effect on providing a sustainable and secure source of nutrient-rich food. These farms can produce 200-300 pounds of fresh food weekly and help feed people in marginalized communities. They can also be used to help train the next generation of urban farmers and create jobs, providing ancillary benefits that can reverberate for years to come.

Personal values, experience lead new executive VP Joseph Cammack to FarmBox Foods

It’s a mix of professional experience and personal values that brought Joseph Cammack to FarmBox Foods.

As a teen, Joseph took a job on a farm in eastern Washington and quickly learned the value of hard work while growing and harvesting wheat, barley and garbanzo beans. His interest in farming and the impact of nutritious food on the overall quality of life for people worldwide is in lockstep with FarmBox Foods’ mission of providing a secure source of food to all, regardless of their circumstances.

Joseph’s strong entrepreneurial spirit manifested itself early in life; he earned money running lemonade stands and mowing lawns as a kid. Later, while pursuing a degree in business management with a double emphasis in entrepreneurship and supply chain management at Brigham Young University-Idaho, he launched his own startup and helped grow it into the successful company it is today. Joseph even created a program that supports up-and-coming entrepreneurs and gives them the ability to test the efficacy of their business model before investing significant time and money.

His experience at small, large and medium-sized businesses has provided valuable insight into what drives a company’s success. It also helped him determine where to aim his skills while helping to implement Centura Health’s food security initiatives in Colorado. Joseph came to the FarmBox Foods team in March 2022 as executive vice president, and is helping further expand the reach of the tools that provide farm-fresh food to communities in need.

“It’s mission-driven, and that’s what really drove me to pursue the opportunity to join the team,” he said. “I’m always looking for a purpose greater than myself.”

When he’s not at work, the married father of two children plays basketball, hunts and goes on family hikes. He is also an avid reader and a movie buff with an affinity for action and sci-fi flicks.

Tornado recovery driven by volunteers, sense of community

Scott and Melanie Walker have spent the last month helping neighbors recover from a deadly tornado that devastated Cambridge Shores, Kentucky, in December 2021.

Tornado recovery driven by volunteers, sense of community

tornado recovery - FarmBox Foods Donates

Tornado Recovery was needed – and Scott Walker was less than a mile away from his new home in Cambridge Shores, a community near Mayfield, Kentucky, when the local police turned him away.

If the officers hadn’t been there to block traffic coming into town, Scott would have been directly in the path of the deadly twister that passed through the night of Dec. 10. In fact, he’d already dodged three tornadoes in southern Illinois on his way there. 

Fate stepped in and saved him, and somehow, his house escaped with only minor damage, but many of his neighbors lost their homes. The devastation was almost incomprehensible. When emergency crews began clearing a path into affected areas, Scott was the 10th car in line, and was stunned by the scale of the damage.

Since then, Scott and his wife, Melanie, did what many others have done and joined an army of volunteers, which included those who’d lost everything, and pitched in where they could. When he returned to his hometown near Chicago, Scott rallied friends and family to donate goods. He brought down two full truckloads of supplies — toiletries, water, diapers, rakes, gloves, granola bars, flashlights, extension cords — and created a GoFundMe campaign for a new playground that literally hit its $4,000 goal as this video was being made. Henry Brothers Company, a general contractor in the Chicago area, donated an SUV full of supplies, and former students of the swim coach for the Lyons Township HS Aquatics program, and their parents, were instrumental in gathering relief supplies. Melanie has spent the last few weeks helping to distribute those supplies throughout the community.

Scott and Melanie, who purchased their home in Cambridge Shores in September, are just one example of the ongoing relief efforts in Kentucky and surrounding states, where 77 people were killed during the December rash of tornadoes. Even though they didn’t know their neighbors yet, Scott and Melanie quickly made friends with them, and they plan to be there for the long haul. 

“We love this place even more than when we bought our house because of how people are there for one another,” Scott said.

FarmBox Foods, a Colorado company for which his brothers serve as CEO and Chief Strategy Officer, donated a total of $750 toward the playground, and it’s hopeful that it can work with local, state and federal officials in the future on a solution for food security in disaster areas, which are often cut off from the food supply chain in the wake of a storm. FarmBox Foods builds automated farms inside shipping containers, and those container farms can provide a hyperlocal source of nutritious food. These mobile units and other innovations can help a community get back on its feet a little bit quicker, with healthy food to help power the long recovery ahead.

“It’s going to be a long process for our community. It’s been totally annihilated. Pictures can’t even tell the story,” he said. “We’re going to be here every step of the way.”