Hedging Against Rising Food Costs

Here’s welcoming to a new week and newsletter.

Apparently, I assumed that October had 30 days and so I was pleasantly surprised to realise that l had prematurely ended the month last week.

Over the weekend, I was pleasantly surprised to discover that truly, the price of rice had skyrocketed. It’s actually one thing to read about these things, it’s another to experience them personally.

Given that flood has unfortunately destroyed this year’s harvest in parts of the country; so local food prices are expected to trend upward for some time. This unfortunately coupled with the steady devaluation of the Naira means that food prices are expected to remain on the high side for some time.

In the face of this, it is advisable that we continue to find ways of maximising our funds, especially our household food bill.

For example, if you can afford to do so, urgently stock up on non-perishable food and household items. Recently, I had cause to do this and my experience and cost savings have ensured that more of such will definitely occur.

Hitherto, I actually was of the school of thought; that buying small quantities per time was better as that meant that you weren’t tying money down unnecessarily.

However, the double whammy of inflation and devaluation has succeeded in wiping away any such benefit.

You would recall that in the past, joining bulk food-sharing platforms had been encouraged. If you are yet to do so, I will suggest you do so now.

Also, if you are one of those who distribute food items during Christmas, it is advisable you prepay now for the items even if you have no intention of giving them to the beneficiaries any time soon.

The aim is to ensure that by moving all such purchases forward, we can hedge against raising costs.

In other news, have you been able to join and participate in the 70-day Smart Life and Financial Literacy Challenge, which was designed to help us end the year on a great financial note? The challenge commenced on 23rd October 2022 and the feedback has been phenomenal.

With a weekly email and daily prompts, we believe our community members will find it useful. You may subscribe to join the challenge using this LINK.

Kindly note that the newsletter will not be available throughout the month of December 2022.

As such, the last 4 editions of the year will be dedicated to lessons learnt and things to be grateful for.

Do have a fantastic week.

PS: You can still access the replays of the 2022 Smart Stewards Summit here.


Toyin Oguntuyi