USDA Announces Expected Jump in Food Prices
Drought hurting production
- Duration 2:34
- Date Jul 26, 2012
Drought hurting production
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Yeah there's every indication -- that this drought affecting the mid western states right now could be the worst in fifty years.
The immediate effect obviously is on farmers especially corn growers.
Vegetable and fruit crops tend to be highly irritated and -- not as badly affected.
Not so court senator Pat Roberts of Kansas put it this way on the senate floor yesterday.
All across farm country.
We are suffering from a severe drought.
Which is a real emergency.
Historic in scope.
In particular for our livestock industry.
But it's not just farmers who will be feeling the effects of this is gonna resonate right on up the food chain.
-- is the primary feed for poultry and livestock and -- this will culminate in big increases in food prices at the grocery store by next year.
The USDA says we expect these price increases beef up four to 5%.
Chicken and Turkey up 3.5 to four point 5%.
And dairy products that meeting milk cheese eggs also -- 3.5 to four point 5%.
Now we hear repeatedly that food price inflation remains in check that it's minimal.
But tell that to the housewife who shopped for groceries every week the drought will strain financially hard pressed families even more -- Housewives and house husbands of course in this recession and I do I do a lot of shopping myself so.
It's -- thank goodness otherwise your household what would happen -- let me ask you a little bit about this prices again we we saw the percentage is going up.
It do you have any sense of a timeline yet but when that actually will happen.
And short term vs long term.
The we're we're looking at next year's gonna take a while to to work itself through the economy before we see these prices -- increased so so next year.
Also throughout the midwest.
That you were hit it cattle are stressed there they're gonna be some short term fluctuations.
Cattle are stressed because all the heat and -- out there.
So many -- -- cattlemen are being forced to cull their herds -- that may put more beef on the market in the short term.
But -- a short term down raising prices will not last long.
That along with the fact that many farmers have crop insurance -- actually gonna mitigate some farmer losses indeed some agricultural interest me profit from the drought.
But they are in a distinct minority this is gonna hurt Americans across the spectrum and -- profound effects abroad because of those huge American agricultural exports.
Changes -- -- short term there could be a lot of beef on the market but not for good reason -- to -- the farmers are trying to figure everything out.
-- -- thank you very much.