Do you think that the price of food is high now? Just wait. If
current trends continue, many of the most common food items that Americans buy
will cost more than twice as much by the end of this decade. Global
demand for food continues to rise steadily as crippling droughts ravage key
agricultural regions all over the planet. You see, it isn't just the multi-year
California drought that is affecting food prices. Down in Brazil (one of the
leading exporters of food in the world), the drought has gotten so bad that 142 cities were rationing water at one point earlier this
year. And outbreaks of disease are also having a significant impact on our food
supply. A devastating pig virus that has never been seen in the U.S. before has
already killed up to 6 million pigs. Even if nothing else bad
happens (and that is a very questionable assumption to make), our food prices
are going to be moving aggressively upward for the foreseeable future.
But what if something does happen? In recent years, global food reserves have dipped to extremely low levels, and a single major global
event (war, pandemic, terror attack, planetary natural disaster, etc.) could
create an unprecedented global food crisis very rapidly.A professor at the W. P. Carey School of Business at Arizona State University named Timothy Richards has calculated what the drought in California is going to do to produce prices at our supermarkets in the near future. His projections are quite sobering...
- Avocados likely to go up 17 to 35 cents to as much as $1.60 each.
- Berries likely to rise 21 to 43 cents to as much as $3.46 per clamshell container.
- Broccoli likely to go up 20 to 40 cents to a possible $2.18 per pound.
- Grapes likely to rise 26 to 50 cents to a possible $2.93 per pound.
- Lettuce likely to rise 31 to 62 cents to as much as $2.44 per head.
- Packaged salad likely to go up 17 to 34 cents to a possible $3.03 per bag.
- Peppers likely to go up 18 to 35 cents to a possible $2.48 per pound.
- Tomatoes likely to rise 22 to 45 cents to a possible $2.84 per pound.
Scientist Lynn Ingram, who has studied the climate history of the state of California extensively, told CBS News that we could potentially be facing "a century-long megadrought" in California. If that does indeed turn out to be the case, we could be facing huge price increases for produce year after year.
And it isn't just crops that are grown in the United States that we need to be concerned about. As NBC News recently reported, the price of cocoa is absolutely soaring and that is going to mean much higher prices for chocolate...
As cocoa prices surge to near-record highs on demand for emerging markets, chocoholics brace for a hike in price – and maybe even a different taste, as chocolate makers hunt out cheaper ingredients.Cocoa futures are up 10 percent so far this year, hitting almost £1,900 on ($3,195) a ton in March. Last year prices rose 20 percent.
In fact, experts are now warning that chocolate may soon
become a "high-end luxury item" because it is becoming so expensive.
Meat prices are also starting to spiral out of control.
A virus known as porcine epidemic diarrhea has pushed pork
prices up to new all-time record highs. It has already spread to 27 states, and
as I mentioned above, it has already killed up to 6 million pigs. It is being
projected that U.S. pork production will decline by about 7 percent this year as
a result, and Americans could end up paying up to 20 percent more for pork by the end of the year.
The price of beef has also soared to a brand new all-time
record high. Due to the drought that never seems to let up in the western half
of the country, the total size of the U.S. cattle herd has been declining for seven years in a row, and it is now the smallest that is
has been since 1951.
If the overall price of food in this country increases by
just an average of a little more than 12 percent a year, it will double by the
end of this decade.
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