COLUMBIA, Mo. – The livestock industry is taking a direct hit by this summer’s drought, and that will impact consumers’ wallets next year, says a University of Missouri agricultural economist.
“I expect to see food inflation, but it will take time,” said Scott Brown, research assistant professor in the MU College of Agriculture, Food and Natural Resources (CAFNR). “The short term effects will be fairly muted for the remainder of 2012, but we’re going to see food price increases in 2013 and maybe into 2014 because of this drought.”
Brown expects to see an 8 percent rise in meat, dairy and poultry prices next year.
The problem is that the drought has dramatically reduced the feedstuffs that animal agriculture needs to raise cattle, swine and poultry. Corn yields, Brown said, will probably suffer a 10 percent or more decrease compared to last year. This has caused corn futures to jump to $8 per bushel in late July from $5.50 per bushel at the beginning of June.
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