Thanksgiving Turkey Shows Drought Price Hike17 October 2012
US - Following months of dry weather, shoppers can expect to see drought-related price increases in the coming weeks on turkey, eggs, vegetable oils and dairy products.
Poultry prices are 5.6 per cent higher than prices last year, with chicken prices up 5.3 per cent and other poultry prices, including turkey, up 6.9 per cent, according to the latest Consumer Price Index figures, reports the Chicago Sun Times.
The poultry category has been expected to be among the first to reflect price increases caused by the drought.
But the biggest pain won’t hit until next year, when the impact of the drought is expected to be felt on a wide range of foods from cereals to soups, the US Department of Agriculture’s Energy Research Services forecasts.
The worst drought to hit the Midwest in decades drove up the price of feed corn and soybeans, which will impact animal-based products the end of this year and throughout 2013, according to Ricky Volpe, research economist at the agency.
“Consumers are going to see major impacts for beef and veal,” he said. “We’re looking at 4 per cent to five per cent in 2013, another three to four per cent for poultry products, which is a huge category where up until recently consumers were actually seeing a little bit of price relief.”
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