Drought to Cause Dairy, Meat, Other Food Prices to Rise
By Alex Sosnowski
Jul 26, 2012
Be on the lookout for higher food prices in general in 2013. However, the greatest impact is likely to be on meat and dairy prices as livestock feed shortfalls caused by the Drought of 2012 catch up with producers and consumers.
Processed foods are not as heavily impacted by the drought.
The United States Department of Agriculture (USDA) states that this year’s ongoing drought will push up food prices in general 2013 by 3 to 4 percent, outpacing typical yearly inflation.
However, the percentage price increase on meat and dairy products could be greater.
According to Dr. James W. Dunn, Professor of Agricultural Economics at the Pennsylvania State University, “During the past two years, we have used more corn than we have produced. We don’t have as much of a buffer going into this year’s harvest, which will be smaller than originally expected.”