A new report from the Federal Trade Commission casts doubt on the idea that rising grocery prices in Maryland and nationwide have been due to retailers' rising costs.
In 2021, the Biden administration FTC began studying America's supply chains including the retail grocery sector. Commissioners examined how COVID-era supply chain disruptions impacted competition among retailers, wholesalers and producers, and how consumers and businesses were affected.
While food price inflation had been less than 2% for several years, the steep rise in grocery prices since COVID saw a 6% annual rate by 2021, and 10% the next year.
Angela Huffman, president of the advocacy group Farm Action, said the report shows while grocers have seen rising costs, public data suggests profits have risen faster than costs.
"In 2021, the retailer revenues rose to more than 6% higher than their total costs, and those profits are still going up," Huffman pointed out. "In the first nine months of 2023, the profits increased to 7%."
The report noted the consolidation in the sector with the top four grocery chains doubling their share of the market since 1990. Maryland has joined seven other states in the FTC lawsuit opposing the merger of Kroger and Albertsons.
In the face of supply-chain disruptions, the FTC report illustrates how large firms used anticompetitive practices to gain market share, at times forcing suppliers to avoid filling orders from smaller grocers. Commissioners found in responding to the disruptions created by concentrated supply chains, some grocers diversified suppliers, while others considered vertical integration with the idea of buying or building their own production capacity.
The report noted in some regions with few producers, the decision to buy an existing food supplier instead of building new capacity may leave remaining buyers worse off. Risks to consumers include retailers with increasing pricing power as well as supply issues for smaller grocery operators.
Huffman argued in some cases, the large firms could be broken up.
"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," Huffman asserted. "In years past, they broke up the telephone companies and the railroads, and that would be the ideal outcome for us, is to take away their excessive power."
A November study found Marylanders faced the third-highest grocery price inflation in the nation, at 7%.
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This week, Ohio approved adult-use marijuana sales as part of a 2023 ballot measure, with sales anticipated to start mid-June.
Ohioans age 21 and over can now legally purchase marijuana across the state. In December, a law was enacted allowing people to grow and possess marijuana, but with no legal avenues to purchase it. Gov. Mike DeWine and some Republicans sought swift action to prevent black market sales.
Jim Canepa, cannabis control superintendent for the Ohio Department of Commerce, said after years of experience in liquor control, his role is to fairly and responsibly permit folks who grow, process, sell and test cannabis.
"My focus right now is really on coming up with the rules that are required and set forth, and the timeline set forth, in the initiated statute," Canepa explained. "They are June 7th to have the applications ready, and September 7th to start issuing permits."
The Joint Committee on Agency Rule Review approved the rules without objection, enabling a dual licensing program for existing medical marijuana dispensaries to also sell nonmedical cannabis products.
Ariane Kirkpatrick, CEO of the cannabis company Harvest of Ohio, said her dispensaries are ramping up to meet the anticipated demand.
"How are we going to do staffing?," Kirkpatrick asked. "We're looking at parking, so, at the different ordinances of the cities of where we're located, to make sure we have the proper parking. Looking at drive-through, because some of our locations might have been limited already as far as capacity."
The new legislation allows for people age 21 and older to buy and possess up to 2.5 ounces of cannabis, or 15 grams of cannabis extract, and the home cultivation of up to six plants for personal use and up to 12 plants with two or more adults in the household.
Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.
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Massachusetts residents struggling to pay high food prices are acquiring a growing amount of debt to pay their bills, according to a new report.
The Urban Institute found 60% of adults reported using credit cards to buy groceries but only 20% managed to pay the minimum monthly payment.
Kassandra Martinchek, senior research associate at the Urban Institute, said nearly 25% of families have dipped into savings to keep everyone fed.
"Some families are really struggling to even meet their basic needs and are taking riskier financial strategies that could leave them less capable to cope with a future financial shot," Martinchek pointed out. "Something like losing their job."
While U.S. inflation slowed last year, the average Massachusetts household continued to spend more than $270 a week on groceries with Boston ranking in the top 20 cities with the highest grocery prices.
The report shows adults with very low food security were also more likely to experience challenges in repaying their debt compared with those with less severe food hardship. For families taking advantage of "buy now, pay later" options, 37% reported missing payments on their loans.
Martinchek emphasized missed debt payments during a time of price hikes could have long-lasting effects.
"They could have constrained access to affordable credit options and struggle to take advantage of different wealth building opportunities," Martinchek noted.
Martinchek added it is especially the case for historically disadvantaged households. The report suggests policymakers strengthen social safety nets to help families as pandemic aid expires, and to bolster credit counseling and debt-management services.
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Ohio lawmakers are exploring ways to address the state's looming retirement crisis.
According to The Pew Charitable Trusts, if the personal retirement savings situation remains unchanged, Ohio could expect to see a more than $11 billion increase in state spending over the next two decades.
House Bill 501 would create a Joint Legislative Study Committee tasked with studying retirement options for small businesses and state-facilitated workplace programs to improve access to retirement savings.
Amy Milam, associate state director of outreach and advocacy for AARP Ohio, said people are more likely to save for their golden years when they can do so by having a percentage of their paycheck deducted.
"In Ohio, we have 42% of Ohio's private sector workers -- that's roughly 1.8 million people -- who do not have access to a retirement savings plan through their employer," Milam reported.
Nationwide, around 64% of Hispanic workers, and 45% of Asian American workers lack access to an employer-provided retirement plan. According to an AARP report, almost three of four workers with less than a high school diploma lack a work-based retirement plan, a much higher percentage than those with a bachelor's degree.
Milam added more than a dozen other states have created partnerships with employers to offer state-sponsored plans to give employees access to Individual Retirement Accounts.
"Giving employees a simple way to save for retirement on the job means that fewer Ohioans will need to rely on public assistance later in life," Milam emphasized. "Which will benefit the individual and will also benefit the state by saving taxpayer dollars."
In some states, investment companies have pushed back on state-sponsored plans, seeing them as competition. But a 2023 survey by AARP found 92% of Ohio business owners support legislation creating a public-private retirement savings option for workers.
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