Posts Tagged “produce price increases”
California’s ongoing drought continues to hit price tags in grocery stores across the country including fresh fruits and vegetable prices, which will go up an estimated 6 percent in the coming months, the federal government said recently.
“You’re probably going to see the biggest produce price increases on avocados, berries, broccoli, grapes, lettuce, melons, peppers, tomatoes and packaged salads,” said Timothy Richards, a chair at the Morrison School of Agribusiness at Arizona State University.
In its monthly report on the food price outlook, the U.S. Department of Agriculture said the price of fruit and vegetables will continue to rise.
The USDA’s Economic Research Service reported that the California drought has the potential to increase food price inflation above the historical average in coming years as farmers continue to battle for water in the summer months.
Although the department is sticking with its overall forecast that U.S. food prices will increase by up to 3.5% this year over last, it cautioned that the cost of meat, dairy, fruit and vegetables will jump.
California farmers produce about half of the nation’s fruits and vegetables, and most of its high-value crops such as broccoli, tomatoes and artichokes.
But the rising cost of water has forced farmers to idle about 500,000 acres of land and produce less, making certain foods more expensive.
Fresh produce has increased the most and that’s a direct result of the California drought,” said Annemarie Kuhns, an economist with the USDA. Almost 70 percent of the nation’s lettuce is grown in California.
The department now expects 2014 U.S. fresh fruit prices to jump by up to 6 percent, up from its May projection of about 4 percent. A devastating citrus disease in Florida also sent citrus prices up 22.5 percent this year.
Consumers will also see a bump in dairy prices due to increased demand.