www.csua.org/u/lca -> www.latimes.com/business/la-fi-rice24apr24,0,3320375.story?track=mostviewed-storylevel
Run on rice makes its way to US Worried about rising prices worldwide, customers have been stocking up, prompting sales limits. By Jerry Hirsch and Tiffany Hsu, Los Angeles Times Staff Writers April 24, 2008 The global run on food that has led to shortages and riots in Egypt, Haiti and other nations has made its way to US shores.
Reduced corn crop forecast plants fears On Wednesday, Sam's Club said customers would no longer be allowed to purchase more than four bags of jasmine, basmati or long-grain white rice on each visit. Sam's Club blamed the restriction on "supply and demand trends" and said it was working with suppliers "to ensure we are in stock." The policy involves only bags weighing 20 pounds or more and does not affect smaller packages sold at the store or its sister Wal-Mart outlets. This week, Costco said it had seen sales of flour, rice and some cooking oils leap. Some Costco stores already have held customers to just two bags of rice a day, but the chain doesn't plan to limit sales nationwide. By midafternoon Wednesday, the Costco in Alhambra -- which had not placed limits on purchases -- said it had run out of rice. Earlier in the day, Michael Yang, manager of Hawaiian barbecue restaurants in Pico Rivera and West Covina, had decided it was time to stock up. He bought 46 bags of medium-grain rice, 50 pounds each, at the Alhambra Costco and loaded them into his white van. "The price of everything -- oil, sugar -- has been going up for months, and rice has been an issue for a few weeks already. Everyone else is doing the same thing I am because they use up their rice so fast," Yang said in Mandarin. Prices for many foods, including beer, bread, coffee, pizza and rice, are rising rapidly as the nation contends with its worst bout of food inflation since 1990. The cost of groceries is climbing at an annual rate of about 5% this year. Retail experts said there was little evidence of "panic" hoarding by the public. It appears that restaurants and smaller retailers have been buying up most of the stock on the expectation that prices will continue to rise. Still, shoppers' actions have taken some stores by surprise. We don't think there is a shortage, it is just increased shopping by customers who think there is," said Richard Galanti, Costco's chief financial officer. For now, the retailer is allowing managers of stores with short supplies to set their own rules. No shortages at any of our stores," said Terry O'Neil, spokesman for Ralphs Grocery Co. When Heidi Diep visited the Costco in Alhambra last week seeking rice for her Chinese fast-food restaurant in Silver Lake, the store was out of stock. It had plenty of rice when Diep went back Wednesday, but, thanks to shoppers like Diep and Yang, ran out again. "I picked up as much as I could," Diep said as she hauled a dozen 50-pound bags of Super Lucky Elephant rice and 10 bags of 25-pound long grain into her van and her sister's sedan. The businesswoman said she was stockpiling the grain to avoid future price increases and a repeat of the week when it couldn't be found. Internationally, shortages of basic commodities -- including rice, wheat and some oils -- have led to protests and riots in recent months, prompting concern about food security in many poor countries.
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