Higher Corn Prices Causing Rising Grocery Prices

By John W. Davis

November 15, 2010 Updated Nov 15, 2010 at 11:50 PM EDT

ROANAKE, Ind. (Indiana's NewsCenter) - Experts report meat and dairy prices will rise in 2011.

Purdue University researchers report that rising grain prices are why grocery prices will go up next year.

Livestock like cows, chickens and pigs are all raised on corn reed.

Therefore, if their feed cost more, your food will cost more.

In 2007, corn prices were about $2.00 a bushel.

Next year, corn prices are projected to be between $5.50 and $6.00 a bushel.

Experts report that developing countries are buying more corn from American farmers.

Also, ethanol production continues to expand, putting non-food demand on corn, resulting in higher prices.

"I think it's going to keep going up. I don't see any stabilization in the near future at all... I'd hate to think what'd really happen... We had a good crop, you know it wasn't a great crop, it was a good crop. If we ever have a drought or a bad crop, it will be really severe then," said TDM Farms Hog Farmer Jim Erickson.

Economists report up to 60% of pig and cow farmers costs ar related to corn feed prices.

Many beef and pork producers are expected to raise fewer animals next year.

In the last four years, Purdue researchers report beef prices have gone up nearly 20%.

Beef production is also down, resulting in rising prices.

Pork and chicken could also cost more in 2011.

Meanwhile, Jim Erickson pointed out that milk, cheese and eggs will also go up.

Erickson said anything related to an animal will probably cost more next year.




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