Thursday, July 19, 2012

Here we go ...

Some not-so-cheery news from the government ...

From the Associated Press

WASHINGTON — U.S. Agriculture Secretary Tom
Vilsack warned consumers Wednesday the worsening
drought blanketing more than half of the country will
lead to higher prices for everything from hamburger
meat and bacon to breads and cereals later this year.

The searing heat and sparse rainfall, which has depleted lakes and reservoirs and left some farmers helpless as their corn and soybean crops wither away in bone-dry fields, has left the country suffering through its worst drought since 1956. Especially devastated has been the Midwest, where much of the country’s corn, soybean and other crops are grown.

Livestock producers, in an effort to minimize future losses, are expected to begin reducing their herds because of high feed costs. While the glut of meat should benefit consumers in the near-term, the reduction in cattle, swine and other livestock could come back to bite shoppers.

So what do we do?  The same as always.  Stock up when prices are lower and stretch what we have harder than ever.

1 comment:

Anonymous said...

I've been reading news articles about the drought with much interest. I fully expect our grocery budget will be painfully high very soon. However, I read that we might not see the prices in meat rise so high at first, because many ranchers will just send their livestock to market sooner than usual instead of buying their feed at the increased costs. That will glut the market, and we might actually find some good meat sales because of it. But, when the inventory of those animals is depleted, we'll see higher prices with a vengeance!
I'll watch the sales flyers and stock up as much as I can afford to, hoping to ride out the coming storm later.