US Food Industry To Feel Katrina's Force

Devastated port means months of higher prices on many goods The aftereffects of Hurricane Katrina will ripple through the economy for months to come as prices rise for goods ranging from tuna to coffee. ''Maybe for the first time, a hurricane in one part of the country will have a big impact on other parts of the country a thousand miles away," said David Ross, a supply-chain specialist at Intentia Americas Inc. Damage to coffee warehouses and production facilities in Louisiana boosted Arabica coffee future prices another 4 percent yesterday on the New York Board of Trade. Casualties to the Gulf fishing fleet could lead to winter shortages of tuna and swordfish. Consumers can expect higher prices for chicken, as it may be months before farms and production facilities in the U.S. Gulf Coast states fully recover from Hurricane Katrina, food analysts and industry experts said. Mississippi produces about 10 percent of the nation’s chicken and much of that production was in the storm’s path. Higher gasoline prices caused by the storm may also raise chicken production costs, with the increases likely passed on to consumers. One other positive consumer note: beef prices are likely to come down, as investors yesterday bet that high gasoline prices will lead to consumer cutbacks in other discretionary spending, such as meals at restaurants. On the Chicago Mercantile Exchange, cattle futures for October delivery fell 1.5 percent to their lowest point in two weeks. http://www.boston.com