Regular Mad Money viewers are no stranger to Cramer’s rants against government-mandated ethanol. He blames the bio-fuel, at least in part, for sky-high food prices. But General Mills CEO Kendall Powell said there’s more to it than that.
Growth in the global economy is driving up food inflation, Powell said during a Stop Trading! appearance Thursday. High commodities prices are the inevitable outcome of China and India’s demand for a better diet as these countries develop.
So ethanol mandates are not the issue, Powell said: “It doesn't help, but it's not the fundamental thing.”
The General Mills CEO is expecting food prices to “moderate,” though “strong continuing economic growth” will result in “continuing inflation on some level in these commodites,” he said.
“I don't think the global economy is going to slow down any time soon,” said Powell, “which is a good thing.”
Cramer, who’s “liked the stock since the ‘80s,” he said, is behind Powell: “You have to buy General Mills.”
Looking for more food stocks to ride out this troubled market? Check these out.
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