Drought Impacting Grocery Store Prices

By Scott Sarvay

July 12, 2012 Updated Jul 12, 2012 at 1:09 PM EDT

UNDATED (Indiana’s NewsCenter) - The past few days we've been talking about how you may feel the affects of our dry weather conditions during your next trip to the grocery store.

The newest information suggests how the drought will soon impact meat prices.

After an encouraging start to their season, cattlemen are already past nervous.

St. Joseph Stockyards Livestock Commissioner Merrill Karr says, “We've had the highest cattle prices we've ever had in history. The cattle numbers are down and the demand was good. Then the drought hit and it's changed things all around."

The reason?

Hay

Hay fields, cut once so far this season, may not grow back.

If a cattle rancher runs out of hay, it'll get costly to feed the cattle.

And with corn prices high, up 28 percent over the last month at seven dollars a bushel, it's reaching a point where raising his heard is just too expensive.

Some ranchers may have no choice but to sell out.

Rancher Dan Hensley says, “If you give $1,500 for a pair and you gotta’ sell them for $1,000 now, it really hurts $500 a pair."

Ranchers are starting to take that loss and that’s bad news for them and your grocery bill.

But there's one solution.

Rain!

But until the sky opens, the uncertainty remains.




What are your thoughts CLICK HERE to leave us a "Your2Cents” comment.

Want to be in the know for the next weather event, the next school closing or the next big breaking news story?

TextCaster alerts from Indiana's NewsCenter are your defining source for instant information delivered right to your cell phone and email. It's free, easy and instant. Sign-Up Now!

Powered by Summit City Chevrolet



© Copyright 2014, A Granite Broadcasting Station. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.