El Nino Could Make Coffee, Cookies, and Chocolate More Expensive

There’s an aisle of the grocery store where inflation is looking exceptionally sticky: indulgent treats. Think coffee, chocolates and your favorite snacks. Prices of soft commodities have soared this year because of supply constraints. The return of El Niño and prospects of hotter, drier weather in producing countries is now threatening to exacerbate tight supply. In the UK, retailers are locking instant coffee jars in security cases to prevent theft. In Japan, one beverage giant suspended the sale of Tropicana orange juice because of a shortage. And in Germany, chocolate and biscuit makers complain of soaring sugar and cocoa costs. [time-brightcove not-tgx=”true”] It’s one corner of the commodities market, along with gold, bucking the deflationary trend even as the cost of food staples like bread and pasta eases. This week, robusta prices surged to the highest level since at least 2008, making it more expensive for buyers around the world to get a cheap brew. Read more: El Niño Has Begun. What to Know About the Weather Phenomenon Prices of soft commodities have been outperformers this year, surging about 24% while the broader agriculture index eased 3% weighed by falling wheat and corn prices. “Consumers will start to see the cost of bread and pasta falling as the prices of grains have come down, but the last thing to fall will be your sugar and coffee and sweets,” said Kona Haque, head of research at ED&F Man. Robusta be...
Source: TIME: Science - Category: Science Authors: Tags: Uncategorized bloomberg wire climate change Food & Agriculture healthscienceclimate Source Type: news