“Central banks seem to have dropped their preemptive approach for dealing with inflation.” - Mark Dowding, chief investment officer, BlueBay Asset Management.
“Inflation (noun): 2. A continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.”
“Transitory (adjective): 1. Of brief duration: temporary. 2. Tending to pass away: not persistent.”
Thanks to Merriam-Webster for these clarifying entries, which together define one perspective on risks of higher prices in the US. But there are also market participants and economists who worry that the unleashing of pent-up consumerism will create inflation akin to the 1970’s. If that happens, they fear, the Fed will be hard pressed to put the cost genie back in the bottle.
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N. G. Purvis Farms Seeks to Transition Pork Production to Farrow-to-Wean Model Amid ‘Unsustainable’ Feed Cost Increases
N. G. Purvis Farms, Inc., a Robbins, N.C.-based large-scale pork production business with farms in North Carolina and Georgia, filed for chapter 11 protection on Thursday, April 8, in the Bankruptcy Court for the Eastern District of North Carolina, pinning the bankruptcy filing primarily on unsustainably high feed costs. The company is seeking to transition from its current farrow-to-finish business model to a farrow-to-wean model through which it will grow weaner pigs for sale to Murphy-Brown LLC pursuant to a supply and purchase agreement. As part of these transition initiatives, the company is looking to liquidate assets associated with its finishing operations. (For access to our First Day by Reorg team’s full case summary of the N. G. Purvis Farms chapter 11 filing click here: https://reorg.com/n-g-purvis-farms-chapter-11/)
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