Analysts: Pet Food Price Surge Predicted

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The second half of 2011 is expected to bring dramatic increases in the costs of pet food, according to analysts from Goldman Sachs.

A new chart from Bloomberg shows how changes in the food component of the consumer price index have influenced changes in pet food prices since 2006. Predicted spikes in the cost of food are expected to be followed closely by pricing increases in the pet food industry.

When one considers that Americans spent more than $45 billion on pets and pet-related products last year, it’s easy to see how sharp increases in pet feeding costs are expected to negatively impact discretionary spending, and hurt other sectors of our consumer based economy. As a matter of fact, Americans now spend more on dogs than we do on our cars, according to data from the Commerce Department’s Bureau of Economic Analysis.

“Recent food price increases appear to be passing through to pet food products, as they did to an even greater degree in 2008, Zach Pandl, senior economist at Goldman Sachs Group Inc., said in a research note to clients. “These gains have added to the rise in core inflation, and likely will continue to do so for a while longer.”

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38 thoughts on “Analysts: Pet Food Price Surge Predicted”

  1. I cook ALL my dogs food. This is what they eat:
    Ground turkey, green beans, carrots, yams, brown rice and pasta and for dessert, cottage cheese, vanilla yogurt, apples, bananas and sometimes blueberries where they’re on sale. 🙂 I cook for the month. There is SO much “Crap” in processed dog food, no wonder they are all getting sick.

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  2. @Noel : way to go! you are truly one amazing caretaker and you are right the commercial food introduces a lot of health problems and dogs who eat homemade natural foods live longer and healthier lives !

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  3. What ever it takes. My senior lab is now eating Orijen(17.00 for 5lbs). She’s diabetic. My rescue lab can only keep California Naturals down,otherwise she throws everything else up. I believe that Goldman Sachs said the price of gas was going own also……

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  4. In the long run…raw and homemade is SO MUCH cheaper especially for the multiple dog household. And if you make it in big enough batches…its really no big hassle!

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