“Experts are warning of a new normal in which food supplies — and prices — could be rocked more regularly,” writes the New York Times in a story on food inflation, trade, and export restrictions. The European Commission lowered the forecast for Europe’s crop yields, due to “distinctly drier-than-usual conditions” in large parts of the continent.
Curtailed food production in one region for one year usually does not matter much in a flexible and dynamic market, said Joseph Glauber, a senior research fellow at the International Food Policy Research Institute. The issue arises when crops are knocked out for a few years running in multiple markets — for example, from droughts.
“Those could create a lot more volatility going forward — it’s one of the uncertainties about climate change,” Mr. Glauber said. Persistent droughts “could lead to regional shortfalls and, with poor countries unable to afford higher prices, food security issues.”
Read the article.