June 23, 2008
NEW YORK (AP) -- The crop damage from Midwest flooding will soon show in food prices.
Beef, pork, poultry, and even eggs, cheese, and milk are expected to get costlier. Livestock owners have been forced to slaughter more animals than they normally would because of the soaring cost of animal feed based on corn.
An estimated 2 million or more acres of corn and soybean fields flooded in Iowa, Indiana, Illinois and other key growing states. The trickle-down effect could become more apparent later this year, around Thanksgiving and Christmas.
Turkey producers are expected to reduce their flocks 10 to 15 percent.
Corn prices were already high because of strong overseas demand and ethanol production. Experts say the government will give a partial idea of how many corn acres were lost before July.
(Copyright 2008 Associated Press. All rights reserved.)