Yahoo Finance Climate Change Is About To Hit Your Wallet at the Grocery Store
Inflation can result from demand outpacing supply. Other times, increased labor costs force businesses to raise prices so they can pay their employees more.
But in certain sections of the grocery store, Mother Nature and her human antagonists are to blame for the sticker shock that many shoppers should prepare to endure.
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“Increased temperatures and unpredictable weather patterns caused by climate change can result in more frequent and severe droughts, floods, and heat waves,” said Eran Mizrahi, an ingredient sourcing expert and CEO and co-founder of Ingredient Brothers. “Such extreme weather conditions can harm crops and reduce their yields, leading to shortages in the supply chain, which ultimately drive up prices for consumers. Furthermore, transportation and distribution channels become disrupted by extreme weather events, resulting in additional cost increases. The result creates a financial burden on households, especially those with limited resources.”
The last year has plagued the country with extreme weather of every stripe — and you’re about to pay the price in the produce aisle.
Your Grocery Bill Depends on the Climate in California
The state most closely associated with extreme weather is also the country’s most prolific agricultural hub.
“One example of the impact of climate change on food prices is in California, which is the source of much of the United States’ fresh produce,” said Hanif Roslen, founder of Ecosguide.
According to California Polytechnic State University, the Golden State produces nearly half of U.S.-grown fruits, nuts and vegetables, and is the only state that exports walnuts, raisins, almonds, artichokes, pistachios, dates, olives, dried plums, kiwifruit, garlic and figs.
Nine of the country’s 10 highest-producing agricultural counties are in California, which accounts for 44% of America’s harvested area and 49% of its total production.
Salinas Valley, America’s “salad bowl,” grows more than 60% of the country’s lettuce. Almonds are America’s No. 7 most valuable crop, and every single one you’ve ever eaten likely came from California — no other state grows almonds and California accounts for 80% of the world’s production.
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The Climate Crisis Is Crushing California and Its Farmers
Americans learned a new phrase from their meteorologists in recent months, and one that defines the extremes that now define California’s climate — “atmospheric river.” Devastating and extended droughts dried up reservoirs across the West and Southwest for much of the 2020s and threatened the very existence of the Colorado River that millions of Westerners depend on for water.
Then, in early 2023, atmospheric rivers transformed extreme drought into devastating floods and the largest snowpacks in 70 years. The water planners farmers depend on for guidance couldn’t make accurate predictions and the spring planting season was cold and wet.
According to USA Today, the extreme swings delayed planting and destroyed crops across the state. In Salinas and Watsonville, which produce one-third of the state’s strawberries, 20% of the fields were underwater after intense rainfall led to levee breaches and widespread flooding.
The result is that shoppers can look forward to fewer choices and higher prices.
California Is Hardly Alone — and There’s Nowhere To Hide
According to the EPA, agriculture contributes $1.1 trillion to the U.S. GDP and accounts for 10.9% of total employment — more than 22 million jobs, both on-farm and in food service and related industries.
While California is the hub of American agriculture, farmers across the country who raise livestock or grow corn, soybeans, cereal grains and other major crops are feeling the impact of record temperature swings and natural disasters that have increased in both frequency and severity.
The inevitable result will be higher price tags at supermarkets.
“Extreme weather events such as droughts, floods, heatwaves, and storms can lead to crop losses, affecting the availability and supply of food,” said Melissa Sallee, food scientist, dietitian, nutritionist and founder of allpizzaholic.com. “Crop failures result in reduced yields, lower quality produce, and increased production costs, ultimately leading to higher prices for consumers.”
Forced Relocation Is Becoming More Common — and Expensive
In more and more cases, what was formerly fertile ground has become inhospitable for sustaining agriculture, which forces farmers into the expensive decision to seek out greener pastures.
“Climate change alters the suitability of certain regions for growing specific crops,” Sallee said. “Rising temperatures, changing precipitation patterns, and altered seasonal timings can disrupt the optimal growing conditions. This can reduce harvests, impact crop quality, and necessitate changes in farming practices. Relocating or adapting agricultural operations to new regions with suitable conditions may incur additional costs, which are then passed on to consumers through higher prices.”
The Many Secondary Factors All Add Up to Higher Prices
Catastrophic fires, floods and droughts grab the headlines, but climate change creates a slew of other obstacles that aren’t as visible, yet are just as certain to lead to price increases at the grocery store.
“Extreme weather events can disrupt energy supplies, leading to higher prices for transportation and refrigeration,” Roslen said. “As food travels further distances from where it is grown to where it is consumed, the cost of transportation increases, resulting in higher prices for consumers.”
Extreme weather also makes it more likely that bugs and bacteria will consume your produce before it ever makes it to your table.
“Climate change affects the prevalence, distribution, and life cycle of pests and diseases, posing a threat to agricultural productivity,” Sallee said. “Warmer temperatures and altered weather patterns can facilitate the proliferation of pests and the spread of plant diseases.”
Commodity Markets Respond to Volatile Weather With Volatile Prices
Also, the human impact goes beyond just carbon footprints.
“Extreme weather events can trigger market speculation, wherein traders and investors anticipate future supply disruptions and adjust prices accordingly,” Sallee said. “Speculation can lead to price volatility in agricultural commodities. If traders anticipate reduced supplies due to extreme weather events, they may drive up prices, even if current inventories are sufficient. This speculation contributes to price spikes and can make groceries more expensive for consumers.”
Ultimately, the USDA expects overall food prices to increase by 6.5% in 2023. While that can’t all be blamed on climate, much of it certainly can.
Sal Gilbertie, president and CEO of the agricultural investment group Teucrium Funds, told Yahoo Finance Live, “The climate is the No. 1 reason why food prices go up.”
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This article originally appeared on GOBankingRates.com: Climate Change Is About To Hit Your Wallet at the Grocery Store
