SCM Inflation Watch: U.K. Pork

Yet another example of how inflation unfolds, and further evidence that it is continuing to unfold today (despite falling prices seen in housing and certain financial assets):

British pig husbandry is in crisis. Exploding global grain prices have driven up the cost of animal feed and farmers say they’re now selling every pig they raise at a $50 loss. Many farms could go belly up, they warn.

Global wheat prices have more than doubled since November 2006, as harvests fail in places such as Australia, more agricultural land is diverted to biofuel production, and growing affluence in China and India boosts demand for grains. A British government scientist said earlier this month that global grain stores are currently at their lowest levels ever, just 40 days from running out.