“How to Live High on the Hog During a Drought” – Wall Street Journal, 4 Sept 2012

Droughts can severely affect the lives of farm animals; livestock are often slaughtered if their living costs increase too rapidly. Farmers look at the situation economically, and sometimes selling an entire outfit makes more sense than continuing to run the show.

According to the National Climatic Data Center, 2012 has been the hottest year on record. Our summer was unfailingly warm; since June, corn prices have grown 41%, while soybean prices have grown 33%. On the same note, prices for hogs and cattle have dropped 19% and 8%.

There is a rise in the slaughter rate – the rate for hogs has shot up to 16%, when, at this time of year, the rate is usually 4-6%. The drought has raised livestock feed prices, persuading farmers to liquidate their assets.

In late 2007 and mid-2008, grain doubled in price, which pushed farmers into thinning their herds. The monthly average of slaughtered hogs increased to 10 million, from a steady rate of 8-9 million. However, the price of hogs recuperated in 2010-11.

The question to answer: how will our hand in climate change continue to affect the cost of food?

Conceived, Developed and Written by Dr. Subodh Das and Tara Mahadevan

October 10th, 2012

Fluid Management Systems

Copyright 2012   All rights Reserved by Fluid Management Systems, Inc.

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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