2012 Drought to Cause Dairy, Meat, and Other Food Prices to Rise

Stacy Dudley Blog Leave a Comment

Will there be a bacon shortage?  Will the drought cause food prices to rise?  Should I stock up on bacon now?

In short, the answers are, I doubt it, maybe, and it’s always a good idea to stock up on Pedersons products!

This is by far THE “trending” topic at Pederson’s Natural Farms.  It’s sweeping across social media as well as mainstream media.  We’re hearing it in our meetings, conversations with friends, and getting frequent calls and emails.

This email from a bacon fan out of Houston prompted the following response from President, Cody Lane.

The question ~
“I’ve read various reports that the midwest drought has caused a feed shortage which will raise the in-store price of pork products, and possibly cause a shortage in production.
I’ve read various other reports that suggest the prices will rise but won’t affect availability.

I’m curious, how will these conditions affect Pedersons products?  Do I need to stock up?” – Michael Bell, Houston, TX

The answer ~
Thanks for your email and support of Pedersons products.  I’ve read a lot of the same things you are referring to below.

My opinion is we will see an increase in all proteins.  The drought has caused not only a feed shortage, but also a liquidation of the national cattle herd.  With high feed prices and a small supply of cattle, beef prices will definitely increase.  So in addition to high feed prices, the increase in cost of beef will push up the cost of all other proteins, including our beloved bacon. Will it be a significant increase?  I really can’t say.

Talking to hog producers that we buy pork bellies from.  They have not indicated to me that there will be significant decrease in number of sows in their systems so we shouldn’t be looking at shortages.  Having said that, if one of the “big” guys (we only deal with smaller producers) cut back their numbers, that would/could tighten supply.  Which would make our costs go up significantly.  Even with that, I don’t see any of us going to store and not being able to buy bacon.

Conclusion.  (Again, my opinion) I believe all food costs will rise in the next few years. I believe that even if supply on all species gets tight at times, it will always be available.  And finally, I’m a salesman, it’s always a good idea to stock up on Pedersons products.

Thanks again for the email,
Cody Lane

We would love to know how you guys think, please feel free to leave a comment or send us an email.

Leave a Reply

Your email address will not be published. Required fields are marked *