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Food Prices on the Rise. Why?

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(Sacramento, CA)
Thursday, March 24, 2011

Dave Kranz is with the California Farm Bureau.  He says winter freezes in Mexico, southern California, and Florida have ruined crops, driving up prices. 

Now spring rains are keeping farmers from planting new crops, which is delaying the supply that will bring produce prices down.       

"We're hopeful that once the rain clears out and the weather returns to a more spring time pattern, farmers will get their crops planted and you'll start seeing increased supplies throughout the spring and into the summer," Kranz said.

Kranz says feed prices have increased too, causing the price of meat and dairy to increase. He says last year's drought in Russia has caused a shortage of wheat, and corn is being used increasingly as fuel instead of food.   

George Jouganatos is an economist at Sacramento State University. 

"Another major factor would be higher energy prices," Jouganatos said. 

He says energy prices are artificially high because of speculation.  He expects them to drop later this year.  He says food prices should drop if that happens. 
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