October 23, 2023

Globally, prices are still going up.

In Canada, the producer prices spiked in the previous month.

And, we have a situation with olive oil being an extremely expensive commodity this year because of climate change.

Rice is now too expensive for many who depend on it.

The price of rice has gone up because of a drought that limited rice production leading to an export ban in India.

Less talked about is the rapid slowdown in yield growth.

Globally, on average yields increased 0.9 per cent a year between 2011 and 2021, a slowdown from 1.2 per cent a year between 2001 and 2011, according to data from the UN. (FT)

This means that food supply methods (mostly burning oil or using extensive fertilizer) and new crop varieties are not resulting in the same growth achieved early on.

Erratic weather patterns are hard to deal with and it is not always clear which advanced variety of your crop you should plant: drought resistant or wet weather varieties.

Why is this important?

Even climate change that does not make the "extreme" label can have a longer-term impact on food production and thus food costs.

Drought has impacted production of food in Thailand, India, Spain, Italy, and Equador.

In parts of Spain the price of drinking water is skyrocketing and some of the south of the country faces desertification.

Torrential rains in German, Britain, and Scandinavia have resulted in some deaths, major infrastructure damage, as well as crop effects.

The impact on food prices cannot be overstated. Many of these disruptions this year will increase food prices next year.

Unrelated to climate change, people in Gaza are also facing price hikes for water as the desalination plants have gone offline.