Consumer Watch: Sharp drop in Temperatures Could Spike Food Prices
From produce to meat, juice to bread... the sharp drop in temperatures blanketing most of the US could add up to a spike in prices at the grocery store.
January 8, 2010
From produce to meat, juice to bread… the sharp drop in temperatures blanketing most of the US could add up to a spike in prices at the grocery store.
Aaron Elstein who reports on Wall Street for Crain’s New York says the wheat, produce and livestock have all been affected by frigid temperatures.
Across Florida, farmers are doing everything they can to protect their multi-million dollar crop just as its ready for harvest.
Orange trees can be killed with just 4 hours of freezing temperatures…the last time the sunshine state faced a problem of this magnitude…100’s of millions of dollars of oranges were decimated in 1985. Experts say expect to quickly see juice prices jump by a dollar a carton.
And it’s not just produce prices that will be affected. everything from wheat products, breads and cereals, bo bacon and meat. but there may be a silver lining
Since the winter wheat crop in the midwest may be damaged, livestock producers may choose to bring animals to slaugther quicker than usual, pushing extra meat onto shelves.
But with oranges, meat and wheat all being traded on the commodities market…that can quickly translate into higher prices on store shelves.