Brazil's ruined crops fuel global inflation

Published 2021년 10월 4일

Tridge summary

Brazil, a key producer of global commodities such as orange juice, sugar, coffee, soybeans, and corn, is facing severe agricultural losses due to the worst drought in a century and an unprecedented frost, intensified by climate change. This has led to significant increases in the prices of commodities like Arabica beans, orange juice, and sugar, contributing to a surge in global food inflation. The drought and extreme weather conditions, including deforestation in the Amazon, are expected to result in a 10% drop in crop yields over the next three decades, impacting millions of people and requiring changes in consumer behavior and production practices to ensure sustainability. The article highlights the challenges faced by coffee retailers like Starbucks and Nestlé to secure supplies and the efforts of roasters like Greater Goods Coffee to raise prices to support sustainable agriculture. The small community of Caconde in São Paulo, dependent on coffee for 80% of its economy, is significantly affected by these losses.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

No country is more present at the breakfast of the global population than Brazil. The country produces 80% of the world's orange juice exports, half of global sugar sales, 30% of exported coffee and a third of the soybeans and corn used to feed chickens and other animals. So when plantations in the region dried up and froze this year in a double blow intensified by climate change – the worst drought in a century followed by an unprecedented frost – global commodity markets were shaken. The cost of Arabica beans rose 30% over a six-day period in late July; orange juice jumped 20% in three weeks; and sugar reached its highest price in four years in August. The rise in prices has contributed to the acceleration of international food inflation – a UN index shows a gain of 33% in the last 12 months – which aggravates the financial problems caused by the pandemic and forces millions of low-income families around the world to reduce purchases of food products. In addition, extreme ...
Source: Cccmg

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