Western drought spells killer grocery bills

Much like the polar vortex spiked demand and prices for natural gas in the eastern U.S., another weather phenomenon — a severe drought — is threatening cattle and milk production and food crops in the West. It’s a threat that can last for months and year, and parched conditions have already driven up prices on milk and cattle futures. “The hardest hit section of California is the Central Valley — ‘the supermarket to the world’ — and [it’s becoming] increasingly clear the region won’t see relief from the devastating drought anytime soon,” said Kevin Kerr, editor of CommodityConfidential.com. “Retail prices for many key agricultural commodities could jump.” That means consumers may see higher prices for everything from beef and milk to wheat, nuts and vegetables, and it’ll take time for supplies to replenish. Drought conditions cover more than 37% of the 48 contiguous states, according to the U.S. Drought Monitor . MDA Weather Services said about 67% of California alone is currently experiencing extreme or exceptional drought conditions. California’s current drought “ranks as one of the worst, if not the worst, on record,” he said. Given that it’s the top producing state nationally for lemons, limes, peaches, strawberries and a variety of vegetables, as well as almonds, walnuts and pistachios, these and other crops could face production problems...more