Food inflation to be driven by record-high mass slaughtering of farm animals
by: Jonathan Benson
Friday, September 28, 2012
The price of food is about to get a whole lot higher as a result of the mass slaughter of cattle stocks worldwide, which itself is a result of persistent drought conditions that have caused a shortage of staple food items, and a subsequent spike in animal feed costs. According to a new report out of England, the end result of this disastrous phenomenon will be a 14 percent overall jump in food costs throughout the next year, as food costs reach their highest levels ever on record.
The U.K.’s Guardian reports that many farmers are slaughtering their pig and cattle herds early, and in much higher quantities, because they simply cannot afford the high and rising costs of animal feed. As we reported previously, this action will result in lower meat prices in the immediate future, but significantly higher meat prices down the road, as eventually there will not be enough available animal stocks to meet demand.
“There will be an initial glut in meat availability as people slaughter their animals to reduce their feed bills. But by next year, herds will be so reduced that there won’t be enough animals to meet expected demand and prices will soar,” says Nicholas Higgins, a commodities analyst and author of the new report. “Farmers cut back pigs because they can rebuild them the quickest. Replacement cattle take a lot longer to breed — a year and a half compared to six months for pigs.”
Food prices across the board expected to rise dramatically in response to drought