MD Drought Warning To Alter Poultry Prices - WMDT 47 News - Delmarva's Choice

MARYLAND - The Eastern Shore of Maryland is under a severe drought warning, urging residents to conserve water. Meanwhile, farmers are savoring every last drop, as their corn crop continues to suffer. Now the USDA predicts a sharp spike in feed prices.

"We expect to see poultry prices to go up 3.5 to 4.5 percent, beef prices looking to another 3.5 to 4.5 percent, pork prices we're looking at probably 2-3 percent," said Ricky Volpe, a USDA economist.

With the Eastern Shore often feeling the burn of a dry economy, more than others, small businesses are bracing themselves.

"In the Salisbury area, there's a lot of restaurants so you have to be careful what you do, because customers have choice," said Costas Yiannouris, owner of the Greek Pita Place.

He also says their last resort is to raise consumer prices.

"I look at the New York strip steak at Sam's Club and its $127 for a pack of meat. We have to cope with it we have no choice," he said.

With the increase in grain prices, many companies seeking to expand have been forced to halt those plans. Officials say that can ultimately threaten job growth in the U.S.

Perdue spokesperson, Julie DeYoung released this statement in response to the drought warning: "For poultry prices, it's difficult to raise prices or raise them very quickly because many of our prices are set in customer contracts. When possible we are shortening contract terms to allow more timely price adjustments."