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Supply Chain Crisis, Global Warming Lead To Rising Prices, Supply Shortages

November 8, 2021: 12:00 AM EST
Like many companies worldwide, San Francisco, Calif.-based bakery Nana Joes Granola is being hurt by one of the unforeseen commercial side effects of the pandemic – namely, the supply chain crisis and its by-products, shortages and higher prices. The company blends only a few agricultural ingredients – rolled oats, nuts, seeds, and coconut – but they are sourced from all over the world. In addition, over the past 18 months prices have soared and availability tightened because of crop shortages caused by climate change. The owner of Nana Joes says so far, she has not passed rising costs on to her customers. However, she expects to pay $342,000 more for raw materials for next year’s products, up 52 percent from before the pandemic. So, price hikes – the granola now retails for $9 to $11 a bag – may be on the horizon.
Carolyn Said, "Why is stuff costing more? The case of one granola maker shows a supply chain in crisis", The San Francisco Chronicle, November 08, 2021, © Hearst
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