August 03, 2012

The Big Drought- How it Effects You . . .

America's Breadbasket has become quite crispy as the drought is spreading across the Midwest leaving wilted crops in its wake, struggling to survive. Cattle ranchers are slaughtering their stock, unable to afford the hay and grain necessary to feed them. Perhaps you've seen it on the news; but- are
 you aware of how this is going to directly affect you and your family?

Here's what you can expect from this drought- beef and pork prices will temporarily drop as ranchers are forced to slaughter their livestock due to the inability to feed/water them. This drop will be quite short lived. 
The effect on the grocery bill will be rather severe as more than 85-88% of corn and soybean crops nationwide are experiencing massive drought conditions. All products containing corn & corn syrup will likely increase by the first of the new year. This includes products like soda/pop, cereal, chips, salad dressings prepackaged snack foods. It has been said that corn is in more than 75% of all manufactured products, including biodegradable packaging! 

Dairy Prices which includes milk and cheese products will also increase for 2 reasons, first- the feed prices will be increasing significantly as farmers are forced to have hay and feed shipped in from other states. Secondly, the increase in heat causes a decrease in dairy production; generally a 20-30% decrease in production past 90 degrees. 

Corn is a primary feed for livestock and poultry, which means that you can also
expect a sharp increase in the cost of beef, pork and chicken. In addition, you can expect a rise in pet food costs as well. Corn is also used in 40% of gas production in the USA (ethanol)- so as a consumer, you can expect to see gas prices increase again as well.

If you live in one of the drought stricken areas you may see a significant increase in your electric bill. The plants that are generating electricity use water for cooling. Without the proper levels of water these plants are forced to reduce their output, causing electricity shortages and increased rates.

Unfortunately, the effects of the drought will likely be felt in your wallet long after it finally lifts, expect high grocery stores prices for 3 years for beef and at least a year and a half for pork. 

There's little doubt that prices are on the rise but you might be wondering how you can counteract them.
1. If you haven't already, switch to generic brands.
2. Cut out Junk Food- corn syrup is in a high number of products including cereal, peanut butter, soda/pop- aside from the fact that they offer very little nutritional value, they're going to continue to be a major drain on the grocery budget
3. If you have a freezer, stock up while the prices are reasonable; While this is a temporary solution to an ongoing problem, it will give you the opportunity to be "choosy" about the sales and grocery budget. Keep in mind that you must repackage the meat prior to freezing. We recommend using a vacuum sealer as you can store meats up to 18 months and still have them taste as fresh as the day they were packaged.
4. Make your own Mixes & Convenience foods to avoid fillers (such as corn syrup solids) as well as the outrageous expense
What we're doing
1. Filling the freezers with beef, pork & poultry
2. Stocking up on Flour (Wheat & White)
3. Planting additional veggies (Tomatoes, Lettuce, Cucumbers) 

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