The global cost of sugar has risen to its highest level since 2011 following concerns about underproduction rates in India, which has suffered a period of extreme drought that has threatened harvests, and Thailand, which is facing a severe drought. The two countries are the largest sugar exporters, after Brazil.
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The rise in global temperatures – 2023 is expected to be confirmed as the hottest year ever recorded – is fueling droughts and other extreme weather conditions that affect food production, including sugar. The price increase has already started to be reflected in chocolates, sweets and other desserts.
North American consumers saw sugar and candy prices rise 8,9% in 2023 and are expected to increase 5,6% this year, according to the US Department of Agriculture, which is well above historical averages.
In November, Mondelēz, a growing company that includes Cadbury, Oreos and Toblerone among its brands, warned about price increases for its products.
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Studies have shown that the global warming will seriously harm the ability of countries like China to grow rice in current volumes, while researchers found out that global corn production could fall by 24% by 2030. Changes in temperature and precipitation patterns could, however, help some other crops, such as wheat – which thrive in places like Russia and Canada – where it is currently very high. cold to grow.
Overall, the global food inflation could reach 3% per year by 2030 due to climate crisis if major adaptation work is not carried out, said one European Central Bank working document last year.
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