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US drought pushes up food prices
Summary
30 July 2012
The US is bracing1 itself for higher food prices next year as a record drought continues to plague farmers in many parts of the country. The US Department of Agriculture says the cost of beef and dairy products are likely to rise 1% higher than the normal rate of inflation.
Reporter:
Jane O'Brien
Report
The drought affecting large parts of the Midwest has withered2 corn and soybeans in the fields. Those are the staple3 crops most commonly used to feed animals. As a result, beef, pork and dairy prices are expected to jump next year - but fruit and vegetables will not be affected4 because those crops are usually irrigated5. The department of Agriculture had been predicting a bumper6 year for corn, but didn't realise how bad the drought would get when it made its food price projections7 last month. Other countries will also be affected, because US food exports have jumped dramatically in the past few years.
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