Cheap processed food (e.g. white rice) has become a hot commodity, as the price of its ingredients continues to rise.
In fact, food processing costs for processors of this cheap food have been on the rise for some time, according to a new study.
According to the latest figures from the Food and Agriculture Organization of the United Nations (FAO), the cost of processing processed food has increased by almost 10% in the last year.
The cost of food processing in the US, for example, is now at a peak of $8.50 per pound for corn.
The problem, however, is that many of these food processing processes are not being completed in a timely fashion, and food producers are not getting their money’s worth.
The report also noted that food processors were not providing information about how much money their suppliers had paid to produce and market their products.
The FAO said that food processing companies should provide a “complete and accurate accounting of the costs of each stage of the production process, including the cost to the producer of the raw material.”
The report further highlighted that many food processors have been reluctant to share information about the costs to their suppliers.
“In some cases, food processors do not have any information about their food processing cost structure,” it said.
“For example, food processor manufacturers and processors may not disclose the total cost of raw materials used in food production, and thus, the true costs to producers.”
The FAO noted that some countries, including China, have begun cracking down on food processors that are profiting from cheap food processing.
In October last year, the World Health Organization declared that China was the worst offender, with more than 10 million cases of foodborne illnesses caused by foodborne pathogens.
The report said that a lack of transparency around food costs in China has also contributed to the increased cost of production, with the price per pound of food produced going up by around 3.5% in 2015.