Severe drought in 29 states to push up food prices

New York: The worst drought in the United States in nearly a half-century is expected to drive up the price of milk, beef and pork next year, the government said Wednesday, as consumers bear some of the brunt of the sweltering heat that is driving up the cost of feed corn.

Poultry prices are expected to rise more immediately, the government said in a report. It estimated that consumer price indexes for chicken and turkey would rise 3.5 to 4.5 percent later this year.

“The poultry category is the smallest animal category, and we expect to see more of an effect this year because they grow the fastest and will be first to be impacted by higher feed prices,” said Richard Volpe, an economist with the Department of Agriculture.

Figures released Wednesday by the department showed the largest percentage increase next year in its price indexes is expected for beef, a rise of 4 to 5 percent. The price of dairy products will increase 3.5 to 4.5 percent and eggs by 3 to 4 percent. Pork is expected to rise 2.5 to 3.5 percent.

The data is the first government estimate of how much prices could rise next year because of the drought that has gripped most of the country –29 states officially– this summer, producing a lower-than-expected yield in corn, soybeans and several other commodity crops. The ‘breadbasket states’, such as Iowa and Indiana, are among the worst affected.