By MICHAEL RUBYThe world’s biggest food chain is in the midst of a price crunch as the price of wheat has plunged to its lowest level in seven years.
While the price has been driven down by the impact of global food security issues and the European Central Bank’s efforts to keep its inflation target under control, some of the biggest food chains are also in the grips of a slowdown in their output.
Rival food group Kellogg is under pressure from rival companies including General Mills to boost output, while other major food makers are also suffering from slowing sales and slowing margins.
In a Reuters survey of the leading food and beverage brands, Kellogg and General Mills, two of the world’s largest producers of cereals, biscuits and snacks, saw their annual revenue fall 2.7% to $4.3 billion.
Kellogg’s revenue was up 2.4% year-on-year to $3.9 billion, while General Mills’ fell 2.5% to just under $3 billion last year.
The food industry is in a precarious position.
The impact of rising food costs is a key factor driving down commodity prices.
According to the World Bank, in 2015, global food prices were around $80 per kilogramme.
In India, which has the world and the most people, prices were about $100 per kilo.
In China, the figure was just under 50 per cent.
Food and drink prices are one of the most important drivers of the economy, but as food prices continue to fall and as governments take steps to keep inflation in check, the industry is facing pressure from competition from a variety of food chains and other businesses.
In its latest annual report, Kellog said the company expects “continuing weak demand” and “low prices” for its cereals in the coming years.
The company’s cereal business has been hit hard by the decline in the price level and the cost of wheat for some time, particularly in the United States.
Food companies are also grappling with the costs of developing new technologies and new products that have to compete with food produced in-house.
At General Mills and Kellogg, the two largest food producers, the impact on production is a concern.
Both companies are focused on boosting their cereals production and sales in a bid to improve profitability in the near term.
General Mills has increased its wheat production by 20% in the past year, and Kellog has increased production by around 30% this year.
The new cereals from Kellogg have been developed in-houses, but Kellogg has also invested heavily in the new technology and is working on a new cereal that will be ready to launch later this year, the company said in a statement.
“In addition to new technology, we are investing in new production processes and improved equipment that will help us meet our production targets,” Kellogg said.
The Kellogg statement said it is investing “a lot” in its new wheat production, and that it is “looking forward to getting to the end of this year with more grain in production.”
“We’re still working to increase the output to meet our targets and we expect to produce a new crop next year,” the statement said.
General Mills said in its statement that the increased production was driven by “unanticipated demand and the challenging environment of commodity prices.”
The company said it was “making progress” in the food and drink sectors and “will continue to invest aggressively in those sectors.”
General Mills’ cereal division, which includes cereals such as Bran, Blueberry, Crisco and Kellos, is also working to improve its quality.
On Wednesday, Kellow’s announced plans to invest $250 million in the cereal division.
It is the latest in a string of announcements by Kellogg to boost its cereal business in the wake of the price crisis.
Earlier this month, Kellogs cereals division said it would invest $300 million in a new plant to produce its cereal grains.
A Kellogg spokesman said on Tuesday that Kellogg will spend $600 million to improve the quality of its cereal business, and said that the investment would be made “through a variety and range of investments across Kellogg’s global footprint.”
The company also said that it will invest $500 million in its specialty foods division, the first of which is expected to be announced in June.
The cereals market has been the subject of much debate, with food manufacturers and the food industry lobbying for higher prices and greater control over the prices they pay for their products.
Kellog has previously been accused of using its global reach to avoid paying fair price for its products in the US.
While some food companies have been able to attract overseas customers by raising prices, the cereals industry has been unable to keep up.
In its statement, Kellopics said that “the cereal industry has historically benefited from a level