Which Foods Will Cost More Due to Drought in US?
Animal-based perishable foods will be hardest hit. The USDA projects that poultry products will rise 3 to 4 percent next year, compared to this year’s average. The biggest rises are seen in beef and veal, rising 4 to 5 percent from 2012 averages (Volpe says structural problems play a role in this sector, alongside the drought). Dairy products will take a hit too, rising up to 4.5 percent.
There is a lag in food prices because it takes time for the effects of a drought to ripple across the food system. Many food manufacturers lock in long-term prices with primary producers. Consumers are likely to see price hikes once the contracts are up, said Joe Parcell, director of Agriculture and Applied Economics at the University of Missouri-Columbia. “We’re going to start feeling the impact from September onwards,” he said.
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