El Niño Threatens Food Prices as Experts Warn of a Possible Food Crisis

A strengthening El Niño is doing more than just impacting the weather patterns. The climate phase is also forecast to drive prices up on coffee, palm oil, and chocolate. Here is what you need to know if you frequently purchase these products.

Powerful El Niño Expected to Exacerbate Shaky Food Supply and High Prices

U.S. consumers are being warned to brace for steeper prices on chocolate and coffee as the record-breaking El Niño becomes more entrenched. The stubborn climate phase is predicted to amplify the already worrisome supply chain issues around the world, leading to higher prices on food products produced in the tropics.

The developing countries that grow these products are forecast to experience the greatest impacts, according to Christopher Barrett, who teaches food and agricultural economics at Cornell University. These nations are less equipped to adapt to extreme weather and shortages in agricultural necessities such as fertilizers.

Supply chain issues are already a concern as tensions in the Middle East and the Black Sea continue. “We’re not in normal times,” Barrett said. The unpredictability of the geopolitical tensions makes El Niño more likely to disrupt the world's food supply chain, with the biggest impacts predicted in eastern and southern Africa

Nations known for their coffee and palm oil products are especially vulnerable to the impacts of El Niño. For instance, Brazil and Vietnam are likely to see noticeable changes in precipitation patterns during times when El Niño is in charge. These changes could significantly disrupt the production of these two goods.

While it may not seem as if palm oil itself is important, this product is a common ingredient in many types of foods, as well as products such as cosmetics. Indonesia is in the middle of a drought and wildfire spread that is being blamed on El Niño. As a major producer of palm oil, the trickle-down effects of this ingredient shortage could be felt around the world.