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How will the drought affect food prices next year?
Wednesday, July 25, 2012 21:41
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The U.S. Department of Agriculture says food prices will increase 3 to 4 percent next year as a result of the drought this year. The Ag Department projects beef to increase 4 to 5 percent next year, dairy will be 3.5 to 4.5 percent higher, pork is expected to increase 2.5 to 3.5 percent.
USDA analyst Ricky Volpe says chicken and turkey prices will increase later this year while beef and veal prices may actually go down a half-percent from his previous forecast as the loss of pastures and high corn prices push more cattle to market.
Overall, USDA estimates food prices will increase 2.5 to 3.5 percent for 2012, unchanged from the last estimate.
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