The U.S. drought will soon take its toll on food prices.Analysts with Great American Group, LLC, believe the higher priceswill extend into 2013 because of the impact of drought on the cornsupply. The higher cost of feed will severely impact the meat anddairy industries.
“The drought has caused a state of alarm in the food industry,”said Ken Bloore, chief operating officer of Great American Group’sAdvisory & Valuation Services Division. “A continued lack ofrain in the U.S. will be detrimental to crop development. This willresult in a tightened supply and higher prices for raw materials,livestock, feed and crops, which could impact gross margins forcompanies throughout the industry.”
The drought has affected nearly 60 percent of the continentalU.S., which is the largest drought in the U.S. since the 1930s and1950s.
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