USDA Economist Says Higher Food Prices In 2013


Uploaded by usda on 21.12.2012

Transcript:
Inflation’s going to pick up in 2013 over what we have seen in 2012. So we are looking
ahead at a year of above normal food price inflation. Economist Ricky Volpe with the
U.S. Department of Agriculture’s Economic Research Service says to expect food price
inflation of three to four percent in 2013. He says the drought affecting two-thirds of
the nation is partly to blame. The major impact of the drought in the Midwest, higher corn
prices leads to higher feed prices, leads to higher animal prices, and higher prices
for all animal products. Volpe says consumers will see especially higher prices for beef.
We are still faced with historically low inventory for cattle in the U.S. So we still have supply
that’slow relative to demand. We have strong inflation; that’s not going anywhere, and
the drought is only exacerbating that. Egg and dairy prices will also be higher as the
drought drives up feed costs. So we have these higher feed prices translating into higher
milk prices, which especially in the coming months and the first quarter of 2013 we expect
to see this translate into a hike in overall dairy prices. As the impacts of higher corn
prices and higher feed prices translate throughout much of the year, we’re looking at egg prices
to go up another three to four percent in 2013. And even fresh produce prices, which
stayed low in 2012, will be going up in 2013. In Washington D.C. for the U.S. Department
of Agriculture I’m Bob Ellison.