Inferior corn crop has supply-chain ramifications
date:Aug 10, 2012
iterion for a measurable increase in the C.P.I.
Mr. Lapp presented a more extreme scenario than the U.S.D.A. He predicted that the damage to the 2012 corn crop will translate into a food inflation rate of 4% to 5% in 2013. In his view, the dollar cost of the drought already was $30 billion, which accrued rapidly over the summer.
This is a cost that somebody has to bear, Mr. Lapp said. Some price hikes are fairly quick and others take a while.
He said high feed costs will have to be absorbed by p
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