Tags: Cargill | Food | Prices | Drought

Cargill CEO: Food Prices to Soar $75 a Person Amid Drought

Tuesday, 31 July 2012 01:24 PM

A crippling drought affecting much of the nation will send food prices rising by $75 per person this year compared to last, said Gregory Page, CEO of U.S. food giant Cargill.

The drought has well over half of the country in its grip and has decimated crop yields, corn especially.

Eventually, less corn will mean higher prices at the grocery store, as many foods are made from corn, which is also a key additive in feed for beef, pork and poultry producers.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

"As to the impact on the consumers, if you compare not against the lower the prices we saw in May and June but go back to a year ago today, take the average consumption of an American consumer, which is about one ton of all the various grains per year, per person here in the United States, prices will be up about $75 per person for their annual diet," Page told CNBC.

"So if you're a family of four on a tight budget, it's not inconsequential but to put it in context, it is about $75 per man, woman and child here in the U.S. versus the levels we saw a year ago."

The drought, meanwhile, shows no signs of abating for over 60 percent of the U.S. corn and soybean growing regions.

"About two-thirds of the belt will remain dry for at least 15 days. There will absolutely be more declines in conditions," said Don Keeney, meteorologist for MDA EarthSat Weather, according to Reuters.

The U.S. Department of Agriculture rated 24 percent of the corn crop in good-to-excellent condition as of Sunday, and 29 percent of the soybean crop in good-to-excellent shape, Reuters added, both down 2 percentage points from the previous week.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

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Tuesday, 31 July 2012 01:24 PM
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