RubinBrown Food & Beverage Update 2015

Producer Price Index by Sub-Industry

Highlights

Fruit / Vegetable Processing

Meat / Dairy Processing

 As mentioned previously (and illustrated in the charts to the left), composite producer prices for food manufacturers began declining during the 3 rd quarter of 2014.  As depicted in the charts, the decline in overall input prices for food manufacturers has been largely driven by declining input prices for meat and dairy processors – with prices for fruit / vegetable processors, beverage manufacturers, and bakeries exhibiting much less volatile price movements.  Much of the recent decline in input prices (beginning in the 3 rd quarter of 2014) can be attributed to generally declining commodity prices (excluding eggs) – especially hog prices, as discussed on the following page.

Year-over-year % Change in PPI

Year-over-year % Change in PPI

20.0%

20.0%

15.0%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0%

0.0%

-5.0%

-5.0%

-10.0%

-10.0%

-15.0%

-15.0%

Overall Food Manufacturing

Dairy Manufacturing

Meat Processing

Overall Food Manufacturing

Fruit / Vegetable Processing

Soft Drinks / Breweries

Bakeries

Year-over-year % Change in PPI

Year-over-year % Change in PPI

20.0%

20.0%

15.0%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0%

0.0%

-5.0%

-5.0%

-10.0%

-10.0%

-15.0%

-15.0%

Overall Food Manufacturing

Bakeries

Overall Food Manufacturing

Soft Drink Manufacturing

Breweries

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Food & Beverage Industry Sector: 2015 Mid-Year Update

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