Jakarta, CNBC Indonesia – Natural disasters, unpredictable weather, and widespread disease outbreaks have affected major food commodities around the world. The Market Insider report said rice prices in Asia reached their highest point since the last 15 years.
Meanwhile, in China, pork prices slumped and pushed inflation into negative territory. This food crisis could bring a new ‘apocalypse’ on Earth. Read more.
Bad weather and the spread of ‘citrus greening’ which is a disease of insects, caused a crisis of oranges in the United States (US). This had an impact on the orange commodity which was drastically reduced.
Florida Citrus Mutual CEO said orange juice production in the US reached its lowest point since last 100 years with an indicator measurement of 317.5 USc per lb.
The majority of orange production in the US comes from Florida. Unfriendly weather and fruit disease outbreaks caused a scarcity of oranges, so the price went up like crazy.
Chinese Pork plummeted
Chinese pork prices continued to decline by 26% as of July year-on-year (YoY). This phenomenon follows excessive reserves, resulting in deflation which can trigger a halt in market activity.
The pork commodity contributes to 3% of the Consumer Price Index (CPI), according to Economist Intelligence Unit (EIU) data.
“Roughly speaking, a 10% increase in pork prices will push up the CPI by 0.3%,” the EIU said.
More Expensive Cocoa Beans
Not only citrus commodities, but cocoa beans also experienced the highest price increase since 2011, according to Barchart data. One of the reasons for the scarcity of cocoa beans is excessive rainfall in West Africa.
Extreme weather brings disease outbreaks that cause cocoa beans to rot. According to Barchart, this could lead to a decrease in cocoa bean production. As a result, the global chocolate market will enter its third year of deficit for the 2023/2024 period.
Asian Rice Prices Skyrocket
Drought in Thailand and India has made rice harvests not as smooth as usual, causing global supply problems. The Insider report said rice prices have never been as expensive as they are in the last 15 years.
Thai white rice rose 5% and broke a record to a price of US$ 648 per ton or the highest since October 2008. The El Nino phenomenon affected farmers in Thailand. They are advised to use less water.
Meanwhile, India, which is a key rice producer for the global world, also imposed an export ban to meet domestic needs. This has also affected the global rice supply drain.
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