Have you ever stopped to think about the impact a drought can have on the world of agriculture? Sure, we hear on the news all the time about a country or region experiencing a drought and that their crops are suffering. The real question is how does that affect every day American citizens? The truth is to droughts have a great impact on not only agriculture but on the consumers of agricultural products.
Consider for example corn. As regions who produce primarily corn products suffer from a draught, you may think the only product that will be more expensive are cobs of corn you buy for the 4th of July. Nothing could be further from the truth. Corn by-products are used to feed cattle. Cattle produce milk and other dairy products. The real result of a drought in a corn-producing region is not only effect of the price of corn but an impact on the price of butter, ice cream and other dairy products.
This phenomenon can be seen throughout the world as various regions struggle under the grasp of a draught. The only good news is, in many cases, there are several regions in the world that are suitable for growing each of the many agriculture products we rely on. For instance, there is a ‘breadbasket’ in both Eastern Europe and the Midwest of the United States. These areas are perfectly suited for growing grains and similar products. If one area experiences a drought, the other area is available to meet some of the needs for those products.
Droughts can have big impact on your grocery bill. Often that impact is seen in places where we would be expected to be. This won’t change.