The drought and what it means for food prices
Teresa McCarthy, associate professor of marketing, is hopeful that the impact this year’s drought will have on food prices will be minimal.
"While prices of [corn, wheat, rice and soybeans] have increased approximately 20 percent to 25 percent, the U.S. consumer will largely be insulated from the impact of these increases," she says in this article on sheknows.com.
Corn and wheat are ingredients in many of the foods we eat, but "those ingredients only account for a small percentage of the retail price," she said. "Other costs include labor to process and sell the foods, transportation, packaging and advertising. For example, a 50 percent increase in corn prices will only impact food retail prices by less than 1 percent."
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