Food Prices and Weather

Frozen orange juice can be tasty, but oranges frozen on the tree leave a bad taste in mouths and wallets!

With all the astonishing advancements in agriculture, it’s easy to forget how much weather is still king of the farm. When the weather is good, crops grow bigger, better, and cheaper. But when the weather is bad... well, let’s take a look.

Supply and Demand
This year, the price of oranges jumped nearly 20%. Why? In the last two years, there have been freezes in Florida and California, destroying oranges, lemons, lettuce, and more. This is when the law of supply and demand kicks in: the fewer the fruits, the higher the cost.

Worldwide Ripple Effect
Did you know your grocery bill is impacted by snowstorms in China? China has had a harsh winter in the south and a spring drought in the north. China is nervous that this weather will further exacerbate their food supply. Therefore they are exporting less and buying more. This will raise the price of grains around the world.

China isn’t the only one having weather issues. For example, floods and a devastating cyclone also affected population-heavy Bangladesh’s ability to produce crops.

And the big one...
Australia, one of the world largest wheat producers has experienced a drought since 2002! This drop in wheat production has raised the cost of everything from the flour in your pizza crust to the corn used to feed for the cattle that are made into fast food hamburgers, many which typically come from down under.

Thanks to this 6-year drought Australia’s rice production is down 98%. The largest rice mill in the southern hemisphere located in Australia previously processed grain to meet the needs of 20 million people around the world. It closed in December 2007 due to the reduction in rice production. With less rice available, countries are buying more substitutes, such as wheat. This drives up the price of wheat too.

Is there hope? Yes. While no one can control the weather, farmers across the nation are taking steps to best control the damage caused by bad weather. Learn more.