USDA says drought will push up food prices in 2013
{{#rendered}} {{/rendered}}The federal government is projecting the record drought gripping half the U.S. will help push food prices up by 3 percent to 4 percent next year.
Figures released by the U.S. Department of Agriculture on Wednesday show that beef prices are expected to see the biggest jump at 4 percent to 5 percent. Dairy product prices are expected to climb 3.5 percent to 4.5 percent. And poultry prices are expected to rise 3 percent to 4 percent.
USDA economist Richard Volpe says these are the agency's first food price projections to factor in the drought. Corn, soybean and other commodity prices are soaring.
{{#rendered}} {{/rendered}}Meat and poultry are the most affected because feed prices represent the biggest part of their cost of production. Processed food prices are less affected.