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Updated: 8:57 PM Jul 8, 2008
Weather Impacting Groceries?
Severe weather is playing a small role in the price you pay at the supermarket.
Posted: 5:44 PM Jul 8, 2008Reporter: A.J. Hilton Email Address: aj.hilton@wilx.com |
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Stalks are piling up at the Feldpausch Farms, and the favorable weather this summer isn't hurting.
"In central Michigan we've had very favorable weather," said Farmer Pat Feldpausch.
Feldpausch is quick to add that not all farmers in Mid-Michigan are prospering. Storm damage throughout the state and Midwest has destroyed some crops for the year.
"In large corn belt states, it has been a big negative impact," said Feldpausch. "Too much rain has made it so if you get a crop planted or if a crop was very small it drowned."
Poor starts are resulting in bad crops-- getting speculators involved in the market-- who raise the prices for the commodities.
"We don't know what the true price of corn should be because the speculators make it vary so much," said Feldpausch.
Some farmers say severe weather is playing a small role in the jump in the prices you pay at the supermarket. They pin the increase in international demand and rising oil prices.
"Energy costs play a very large portion of the increase in food costs," said Ernie Birchmeier of the Michigan Farmer's Bureau. "There's an even larger impact when you talk about the transportation costs to get that product to market, the processing and production costs and the energy that is involved there."
Supermarket prices are up 3.5%, and staples like milk and bread may not be coming down.
"Will it continue to cost a little bit more? It probably will," said Birchmeier. "Those are discussions that need to take place and we need to resolve them."
A discussion that could have customers cutting their shopping lists at the supermarket.
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