A shortage of corn may mean paying more for everyday products.

Goods like toothpaste, soda, Advil, cosmetics, chips and snacks, even paper products have one common ingredient, corn.

An increase in corn prices means the prices of all of these goods and others that contain corn and corn byproducts could all be on the rise.

Karen Alaniz knows how to find a good bargin. She's one of the founders of Southern New Mexico Coupon Club and teaches others how to stretch a dollar. 

"Overall, groceries have been more expensive this year," said Alaniz

Grown in America's heartland, corn is arguably at the heart of the country's economy. Forty percent of the corn crop goes into making ethanol, which gas companies then mix with gasoline.

Economic experts caution increased prices for corn could mean paying more at the pump.

Corn goes into the feed most farmers give their animals, and that could result in higher prices for chicken wings, hamburgers and steak.

"The biggest increase we have seen as a family is in milk, and of course, cows are corn-fed. It's hard to find milk under $3 or $2.50," said Alaniz. 

But corn also pops up in the most unusual of products.

"The second manner in which it feeds into higher prices is through all of the items in which corn is utilized, and there are a lot of different uses for corn and corn byproducts and so there is going to be higher prices in a lot of unexpected areas," said Dr. Tom Fullerton, a professor of economics at the University of Texas El Paso.

Pet food, skin care, pharmaceuticals, tires and even blue jeans all contain corn. 

"It's also used to prevent cough syrup from crystalizing. Twelve months from now, when little kids are getting colds, syrup may increase as a result of this," said Fullerton. 

To save, Alaniz suggests stocking up on items you buy all the time when they are on sale. Another way to save --adding more fruits and vegetables to your diet, because those two things haven't gone up. 

Alaniz also suggests price matching, take a look at the different prices at different stores.

"When you price match you start to learn the different prices and what the bottom line prices are of products. So now when I price match store to store and see a really terrific deal, I tend to stock up on it more than I used to," said Alaniz.

While it can be harder to find bargains as prices rise, it's not impossible. 

"If you put the time into it, you can find a good price on almost any item that you are looking for," said Alaniz.

But Alaniz said, if certain products you buy all the time start to get too expensive, it might be time to re-evaluate your purchases.
"If milk went to $5, we would start re-arranging. Substituting with other dairy products like yogurt," said Alaniz. 

Fullerton said there may be a few factors in 2013 that could offset the increased prices of corn. 

"Gas prices and diesel prices are expected to decrease by about 20 cents per gallon in 2013 in the year as a whole," said Fullerton. That will help reduce some of the pressure caused by the corn shortage and may mean shoppers might not notice much of a price change. 

"It shouldn't be anything like what a normal corn shortage year would imply in terms of price," said Fullerton.

That's good news for shoppers always looking for a deal.

"Next summer will come, hopefully there won't be a drought, there won't be a shortage and that will be the time that prices come back down," said Alaniz.

A report released by the USDA last week revealed farmers produced less than 75 percent of the expected crop in 2012 because of the drought.

http://www.corn.org/products/bioproducts/

http://www.huffingtonpost.com/2012/09/04/corn-syrup-foods-high-fructose-_n_1854790.html#slide=1469134

http://healthhabits.files.wordpress.com/2009/01/products-that-use-corn.pdf