Climate Change Drives Up Global Food Prices

Strategic Insights -

Food prices across the globe are increasing due to the impact of climate change, with extreme weather conditions leading to price spikes in coffee, cocoa, and rice in various countries. Research by European researchers titled 'Climate extremes, food price spikes, and their wider societal risks' found that severe droughts, heat waves, and floods have affected food products differently depending on their growth locations. For instance, a 50% rise in olive oil prices occurred in the EU due to drought in southern Europe, while a 100% price increase in Vietnamese coffee was seen due to a heat wave.

Key Takeaways:

  • Severe drought in southern Europe led to a 50% rise in olive oil prices across the EU in January 2022-23, a 22% increase in potato prices in the UK in early 2024, and a 70% rise in cabbage prices in September 2024 in East Asia due to heat waves.
  • Heat waves in East Asia resulted in a 48% increase in Japanese prices and a 30% rise in Chinese vegetable prices in June and August.
  • Indonesian rice prices increased by 16% due to a drought in 2023, while Vietnamese coffee prices saw a 100% surge due to a heat wave in February 2024.
  • Floods in 2022 led to a 300% increase in lettuce prices in Australia, and heat waves in March 2024 drove corn prices in South Africa up 36%.
  • Ethiopia's 2022 drought caused food prices to rise by 40% in 2023.
  • Drought in California and Arizona in 2022 led to a 80% increase in vegetable prices by November 2022.
  • Fruit and vegetable prices in Mexico rose by 20% in 2024 following a drought in 2023.
  • Climate change increased global coffee prices by 55% in August 2024 due to a drought in Brazil, the world's largest coffee producer.
  • Ghana and the Ivory Coast, which account for 60% of global cocoa production, experienced a nearly 300% increase in cocoa prices in April 2024 due to prolonged drought and heat waves.

Statistics:

  • 50% rise in olive oil prices in the EU due to drought in southern Europe.
  • 100% price increase in Vietnamese coffee due to a heat wave.
  • 70% increase in cabbage prices in East Asia due to heat waves.
  • 48% increase in Japanese prices due to heat waves.
  • 30% rise in Chinese vegetable prices in June and August.
  • 16% increase in Indonesian rice prices due to drought.
  • 300% increase in lettuce prices in Australia due to floods.
  • 36% increase in corn prices in South Africa due to heat waves.
  • 40% increase in food prices in Ethiopia in 2023 due to drought.
  • 80% increase in vegetable prices in California and Arizona in November 2022 due to drought.
  • 20% rise in fruit and vegetable prices in Mexico in 2024 due to drought.
  • 55% increase in global coffee prices in August 2024 due to drought in Brazil.
  • 60% share of global cocoa production held by Ghana and the Ivory Coast.
  • Nearly 300% increase in cocoa prices in April 2024 due to drought and heat waves.

Sources:

  • "Climate extremes, food price spikes, and their wider societal risks" (European researchers' study)
  • "Severe drought in southern Europe leads to 50% rise in olive oil prices" (Source: [On file, referencing EU data])
  • "Heat waves in East Asia result in 70% rise in cabbage prices" (Source: [On file, referencing data from various East Asian countries])
  • "Indonesian rice prices increase by 16% due to drought" (Source: [On file, referencing data from Indonesia])
  • "Climate change drives up global food prices" (Source: [On file, referencing study by European researchers])