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Hain Celestial Founder Irwin Simon on the rising cost of food and why more subsidies should go to organic farms.
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Actually makes a very important point these are big corporate farms and -- if you listen to Craig -- he used to run Intel he said eight years ago get rid of the farm subsidies and subsidize engineering students in America so we could create jobs.
Organic farms get more federal subsidies than conventional farm so let's ask one of -- biggest names in organic foods.
How he would cope if those programs are chopped here in a fox this -- -- -- -- answer may surprise you Irwin Simon.
The founder and CEO of -- Celeste you know -- stock just happens to be climbing more than 14%.
Year over year.
Do think these subsidies are necessary.
-- -- -- open much of course of today and I'm not make -- horses are not gonna name -- listen.
Is they said a lot of the bigger firms are getting the subsidies.
I happen to think organic farming is so important organic crop is so important so I'm in favor.
Organic farmers getting subsidies.
And I think we need more more organic products so they're more more of any grains and you know.
Prices organic ten to 15% higher I'd love to see organic you know products power with conventional products.
But prices of everything going higher court right now.
Skyrocketing so so do you think we need to get rid of those subsidies for the big corporate -- this is taxpayer money I know your free market -- one.
Those who -- is let's come back and look at that this was number one.
There's a problem with ethanol in regards to corn prices okay -- the other thing is pay per week is there a lot of these hedge funds out there today how much hedge.
Is in grains in crops in commodities speculation he is speculation and and with that you know.
But let's wait a little while but -- -- fuel all of sudden you know we have all this abundance of fuel look there are we gonna have all the abundance of corn up their markets.
Now that's a good question and then you know Howard Schultz he's he's absolutely with you -- -- speculators are jacking up the price of coffee but let's bring -- pain.
You use a voluminous amount of organic product and and how closely are you watching these prices and will you have to raise your prices I know in the past couple of years you have here -- there.
More price hikes to come.
Well we just took a 5% price increase and you know it's hard to take a prop up price increase -- You know you hate pass on these higher prices but they're being passed on to us and -- being passed us on -- us immediately where takes us you know 45 months past month.
But you know fuel is a big driver because there's so many ingredients -- that are delivered -- packaging that is -- -- Fuel and by the way on on our table here are many of your products you do terra chips -- best.
A -- streams malarial season dollar personal care what brought their their packaging with a personal care exactly this is an nothing that has plastic and it has to.
Throwing in -- you there's no -- no chemicals.
And I and I think come coming back -- secondly is the American consumer -- is being educated more more about healthy products okay.
And you know with fuel prices moving the way they are more more consumers are staying at home -- -- And you know I'm seeing in our chicken category which were -- antibiotic free organic chicken -- grown adult digits consumer you a lot less red meat.
Because of the costs to you know keep -- -- -- consumer -- or are strapped at the moment.
-- consumers see that translated your bottom line where they say wait a minute I can't shop at whole paycheck I mean whole foods.
You know -- and of course here one of their biggest that this shelf filler listen consumers are strapped on the other hand.
Our average cost of a product today is three dollars and fifty cents you know I'm not selling Hermes bags or Coach bags or whatever I'm selling good quality foods.
But -- -- today.
We're all concerned about our health we're all concerned about our children's health you know with first best baby food we feed.
You know we some 94 million jars of baby food a year you're introducing infants and toddlers to their first food you know there's no -- -- there's no BP A -- regards the glass jurors is not leaving any toxins so -- it's important.
All I gave to my kids I was so you -- to fight me into any of the automated Leslie careful.
-- hate somebody else aside from everybody -- jacking up her stock disinterested Carl Icahn.
Is upping his stake.
Her when does that Q nervous I think I talk to CEOs and when they find out they're sitting at his table at a charity event ask to be moved because they don't want him looking at their stock because -- -- tend to be.
A vocal and active shareholder and sometimes that isn't in the best interest at least for the CE up.
So first of all number one -- have confidence your company confidence what you do and and I absolutely do that you know Carlton shareholder now for a year.
And he's done well what does -- want to do with your.
I don't know and I would sit at his table at a charity benefit.
That I would have dinner with him so -- don't fear Carl Icahn getting involved in -- you know what I don't fear -- -- getting involved McCain and I you know every shareholder should be treated equal and it's my job to do good job for shareholders do good grief and made good return for shareholders.
And that's what we're doing right now -- -- so Canadian.
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Coli scares all that are thank you thank you so much -- --
