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August 8, 2022
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eToro’s Breakfast Commodity Index: Cost of breakfast food staples soars 71% in just two years

  • eToro’s Breakfast Commodity Index looks at spot prices of morning staples such as tea, coffee, oats, wheat, milk, cocoa and orange juice
  • Orange juice has seen the steepest commodity price rise of any item in the breakfast basket, jumping 124% in two years
  • Cocoa has seen the most modest price rise, increasing just 7%, with the crop’s price having been negatively impacted by a surplus of supply during the Covid pandemic
  • 71% increase in the price of breakfast commodities dramatically outpaces the 11% rise in UK CPI since July 2020, indicating there is more price pain to come for consumers

The cost of commodities that make up a typical breakfast has soared over 70% in the past two years, according to the latest Breakfast Commodity Index from social investing network eToro.

The rate of price growth dramatically outpaces the 11% rise in the UK consumer price index (CPI) over the same period[1], indicating there is likely to be more price pain to come for UK consumers as food companies look for ways to offset their costs.

The Breakfast Commodity Index is based on spot prices of a basket of nine typical breakfast goods – wheat, sugar, cocoa, oats, pork, orange juice, coffee, milk and tea. Since July 2020, the index has risen by 71%, with the war in Ukraine, global supply chain issues and bad weather the key factors causing the upward trend.

Ben Laidler, Global Market Analyst at eToro, said: “Commodity prices have been rising across the board since the Covid pandemic thanks to global supply chain chaos, and the war in Ukraine has only exacerbated this. Add this to poor weather impacting a number of crops in the last year, and you have a perfect storm of factors making the food on your breakfast table far more expensive to source and supply for food companies.

 “Much of these price increases are already being passed on to consumers, through higher prices or smaller ‘shrinkflation’ sizings.”

Orange juice has seen the steepest price rise of any item in the breakfast basket, with its commodity price jumping 124% in two years, largely thanks to a particularly poor orange harvest in the US stemming from bad weather and disease.

Coffee prices have also skyrocketed, rising 94% over the same period, again a result of poor weather in major producing countries such as Brazil, as well as ongoing global supply chain issues. Not far behind, the price of pork has jumped 80% since July 2020 – a trend thought to be the result of higher transportation and labour costs.

Whilst every single item in eToro’s Breakfast Commodity Index has risen in price in the last two years, cocoa has experienced the most modest rise, increasing just 7%, with the crop’s price having been negatively impacted by a surplus of supply during the Covid pandemic.

 

Commodity Base = 100 July 2020 Indexed price January 2021 Indexed price July 2021 Indexed price January 2022 Indexed price July 2022
Wheat 100 135 132 158 163
Sugar 100 119 143 149 146
Cocoa 100 116 112 115 107
Oats 100 106 108 196 183
Orange Juice 100 117 154 186 224
Milk 100 113 123 163 178
Coffee 100 116 139 192 194
Pork 100 113 180 151 180
Tea 100 115 97 146 140
eToro Breakfast Commodity Index 100 117 133 159 171

Spot prices taken in the first week of July and January every six months for previous two years

 

About the data

 

Data sourced from Refinitiv on Wednesday July 6 2022. Wheat (No.2, soft Red, US$/Bushel), Raw Sugar (ISA, US$c/lb), Cocoa (ICCO, US$/MT), Oats (No.2 Milling Minneapolis, US$/Bushel), Orange juice (Refinitiv CRB CMP), Milk (Non Fat Dry Grade A), Coffee (ICO Composite ICA, US$c/lb), Pork (Bellies, 12-14lbs, Mid-US, US$/lb), Tea (Medium, PF1, Kenya, US$/Kg).

 

About eToro

 

eToro is a social investment network that empowers people to grow their knowledge and wealth as part of a global community of successful investors. eToro was founded in 2007 with the vision of opening up the global markets so that everyone can trade and invest in a simple and transparent way. Today, eToro is a global community of more than 27 million registered users who share their investment strategies; and anyone can follow the approaches of those who have been the most successful. Due to the simplicity of the platform users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.

[1] ONS data

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