August 7, 2006

US heatwave killing cattle and ruining crops

US meat and crop prices are expected to rise as high temperatures continue to ruin crops and kill cattle, experts said last week.

In California, 16,500 cows and up to 1 million chickens and turkeys were killed by the heat.

Export prices are also expected to rise as the heat caused an estimated US$1 billion in damages to the state's US$33 billion agricultural industry.

Keith Collins, chief economist for the US Department of Agriculture, said based on the strength, size and number of America's farms, the damage has not been crippling, even though prices would edge up.

Collins said that since the period in question is just a matter of weeks in a long year, the effects of the heatwave would be limited.

Milk prices are the most vulnerable to the heat.

Heat lowered milk production in California by 20 percent as thousands of dairy cows were either killed by the heat or suffered from lower production.

Corn and soy farmers in the Plains States were also despairing and waiting for the heatwave to pass before assessing the overall damage.