Drought in U.S. To Inflate Food Prices in Canada

U.S. drought | BCBusiness
As one of the country’s major exports, withered crops in the U.S. are expected to create a surge in food prices worldwide.

The dry weather plaguing much of the Midwest will ultimately lead to spikes in prices at Canadian grocery stores and elsewhere abroad.

After an extremely dry summer across the States, grocery shoppers here in Canada can expect to be hit with higher bills beginning next year.
 
A Royal Bank of Canada economist believes the hard-hitting drought will equate with noticeably higher food prices for the rest of us. According to the National Oceanic and Atmospheric Administration, July was the hottest month in history for our southern neighbours. As a result, many corn and soybean crops are withering into dust. And the effects trickle down the food chain from there.
 
Canadians should get ready to pay more for their steaks. Experts expect some prices to rise as much as four per cent next year, and believe meat prices will be most impacted. Because livestock in the U.S. is primarily fed a corn and soybean diet, beef and pork will see the highest increases.
 
Some varieties of wheat have also been impacted, which could mean higher prices for baked goods, cereals and some pastas.
 
Food is one of America’s biggest exports, so at least Canadians won’t be the only ones feeling the pinch.