Your food, your wallet and the California drought
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Posted On: 04/19/2014 12:58:47 PM
Your food, your wallet and the California drought
Mark Koba | @MarkKobaCNBC
6 Hours Ago
CNBC.com
COMMENTSStart the Discussion
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American consumers are already feeling the pinch of rising food prices, and they will likely experience more—courtesy of California's devastating drought.
"I would expect a 28 percent increase for avocados and 34 percent for lettuce," said Timothy Richards, a professor of agribusiness at Arizona State University who conducted research released this week on probable crop price increases stemming from the ongoing drought.
In a phone call with CNBC.com, Richards added that the price increases would also include foods including berries, broccoli, grapes, melons, tomatoes, peppers and packaged salads. The higher rises should be felt in the next two to three months, he said.
Read MoreRising food prices pinching consumers
To come up with his figures, Richards used retail-sales data from the Nielsen Perishables Group, an industry analytics and consulting firm, to estimate how much the prices might vary for the fruit and vegetable crops most likely to be affected by the drought.
Those most vulnerable are crops that use the most water or those sensitive to reductions in irrigation, according to Richards.
Industry estimates range from a half-million to 1 million acres of agricultural land in California likely to be affected by the current drought, said Richards. The state's governor, Jerry Brown, declared a state of emergency in January due to the lack of water.
The Golden State grows more than 200 different crops, some grown nowhere else in the U.S. California produces almost all of the country's almonds, apricots, dates, figs, kiwi fruit, nectarines, olives, pistachios, prunes, and walnuts. It leads in the production of avocados, grapes, lemons, melons, peaches, plums, and strawberries. Only Florida produces more oranges.
Richards said he believes between 10 and 20 percent of the supply of certain crops from the state could be lost.
Mark Koba | @MarkKobaCNBC
6 Hours Ago
CNBC.com
COMMENTSStart the Discussion
Getty Images
American consumers are already feeling the pinch of rising food prices, and they will likely experience more—courtesy of California's devastating drought.
"I would expect a 28 percent increase for avocados and 34 percent for lettuce," said Timothy Richards, a professor of agribusiness at Arizona State University who conducted research released this week on probable crop price increases stemming from the ongoing drought.
In a phone call with CNBC.com, Richards added that the price increases would also include foods including berries, broccoli, grapes, melons, tomatoes, peppers and packaged salads. The higher rises should be felt in the next two to three months, he said.
Read MoreRising food prices pinching consumers
To come up with his figures, Richards used retail-sales data from the Nielsen Perishables Group, an industry analytics and consulting firm, to estimate how much the prices might vary for the fruit and vegetable crops most likely to be affected by the drought.
Those most vulnerable are crops that use the most water or those sensitive to reductions in irrigation, according to Richards.
Industry estimates range from a half-million to 1 million acres of agricultural land in California likely to be affected by the current drought, said Richards. The state's governor, Jerry Brown, declared a state of emergency in January due to the lack of water.
The Golden State grows more than 200 different crops, some grown nowhere else in the U.S. California produces almost all of the country's almonds, apricots, dates, figs, kiwi fruit, nectarines, olives, pistachios, prunes, and walnuts. It leads in the production of avocados, grapes, lemons, melons, peaches, plums, and strawberries. Only Florida produces more oranges.
Richards said he believes between 10 and 20 percent of the supply of certain crops from the state could be lost.
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