It seems like everything that happens these days causes SOMETHING to become more expensive . . . and here’s the latest:
“Newsweek” has a rundown of “Foods That Could Become More Expensive During El Niño.” These weather extremes are likely to impact farming in South and Southeast Asia, and Western Africa, among other places.
Chocolate, olive oil, coffee, and wheat are expected to be in shorter supply and could spike in cost for American consumers.
As far as timing, chocolate and sugar would move up first . . . bread directly follows a wheat shortfall, while coffee and palm-oil-based foods take three to 16 months to be affected . . . so we wouldn’t see that until next year.
Global wheat production is approaching a 56-year low . . . and rice imports are also threatened by drought risks in India, Thailand, and Vietnam.
All this being said, there’s some BIGGER perspective than just U.S. prices.
Generally, American agriculture is expected to dodge the main El Niño complications, although there could be some state-to-state impacts.
But the broader concern is that El Niño’s farming destruction in South Asia and West Africa could exacerbate food insecurity in “the poorest of the poor” areas.