{"id":34528,"date":"2023-07-14T22:59:00","date_gmt":"2023-07-14T22:59:00","guid":{"rendered":"https:\/\/www.lifeandnews.com\/articles\/?p=34528"},"modified":"2023-07-15T16:33:22","modified_gmt":"2023-07-15T16:33:22","slug":"what-this-years-el-nino-means-for-wheat-and-global-food-supply","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/what-this-years-el-nino-means-for-wheat-and-global-food-supply\/","title":{"rendered":"What this year\u2019s El Ni\u00f1o means for wheat and global food\u00a0supply"},"content":{"rendered":"\n<p><a href=\"https:\/\/theconversation.com\/profiles\/david-ubilava-1181215\">David Ubilava<\/a>, <em><a href=\"https:\/\/theconversation.com\/institutions\/university-of-sydney-841\">University of Sydney<\/a><\/em><\/p>\n\n\n\n<p>The World Meteorological Organization has declared the onset of the first El Ni\u00f1o event in seven years. It estimates 90% probability the climatic phenomenon, involving an unusual warming of the Pacific Ocean, will develop through 2023, and be <a href=\"https:\/\/public.wmo.int\/en\/media\/press-release\/world-meteorological-organization-declares-onset-of-el-ni%C3%B1o-conditions\">of moderate strength<\/a>.<\/p>\n\n\n\n<p>El Ni\u00f1o events bring hotter, drier weather to places such as Brazil, <a href=\"https:\/\/theconversation.com\/its-official-australia-is-set-for-a-hot-dry-el-nino-heres-what-that-means-for-our-flammable-continent-209126\">Australia<\/a> and Indonesia, increasing the risk of wildfires and drought. Elsewhere, such as Peru and Ecuador, it increases rain, leading to floods.<\/p>\n\n\n\n<p>The effects are sometimes described as a preview of \u201cthe new normal\u201d <a href=\"https:\/\/theconversation.com\/why-are-so-many-climate-records-breaking-all-at-once-209214\">in the wake of human-forced climate change<\/a>. Of particular concern is the effect on agricultural production, and thereby the price of food \u2013 particularly \u201cbreadbasket\u201d staples such as wheat, maize and rice.<\/p>\n\n\n\n<p>El Ni\u00f1o\u2019s global impacts are complex and multifaceted. It can potentially impact the lives of the majority of the world\u2019s population. This is especially true for poor and rural households, whose fates are intrinsically linked with climate and farming.<\/p>\n\n\n\n<p>The global supply and prices of most food <a href=\"https:\/\/doi.org\/10.1093\/ajae\/aax060\">is unlikely to move that much<\/a>. The evidence from the ten El Ni\u00f1o events in the <a href=\"https:\/\/ggweather.com\/enso\/oni.htm\">past five decades<\/a> suggests relatively modest, and to some extent ambiguous, global price impacts. While reducing crop yield on average, these events have not resulted in a \u201cperfect storm\u201d of the scale to induce global \u201c<a href=\"https:\/\/doi.org\/10.1016\/j.agrformet.2023.109321\">breadbasket yield shocks<\/a>\u201d.<\/p>\n\n\n\n<p>But local effects could be severe. Even a \u201cmoderate\u201d El Ni\u00f1o may significantly affect crops grown in geographically concentrated regions \u2014 for example palm oil, which primarily comes from Indonesia and Malaysia.<\/p>\n\n\n\n<p>In some places El Ni\u00f1o-induced food availability and affordability issues may well lead to serious social consequences, such as conflict and <a href=\"https:\/\/www.theguardian.com\/global-development\/2016\/feb\/17\/el-nino-leaves-100-million-people-hungry-short-of-water-droughts-floods-worldwide\">hunger<\/a>.<\/p>\n\n\n\n<h2>Impact on global food prices<\/h2>\n\n\n\n<p>The following graph shows the correlation between El Ni\u00f1o events and global food prices, as measured by the United Nations\u2019 <a href=\"https:\/\/www.fao.org\/worldfoodsituation\/foodpricesindex\/en\/\">Food Price Index<\/a>. This index tracks monthly changes in international prices of a basket of food commodities.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-datawrapper wp-block-embed-datawrapper\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"El Ni\u00f1o and global food prices\" src=\"https:\/\/datawrapper.dwcdn.net\/fTT5i\/3\/#?secret=blgSHR1L7p\" data-secret=\"blgSHR1L7p\" scrolling=\"no\" frameborder=\"0\" height=\"400\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Despite the general inflationary pattern, there have rarely been big swings in El Ni\u00f1o years. Indeed, it shows prices decreasing during the two strongest El Ni\u00f1o episodes of the <a href=\"https:\/\/ggweather.com\/enso\/oni.htm\">past three decades<\/a>.<\/p>\n\n\n\n<p>Other human-caused factors were at play \u2013 notably the Asian Financial Crisis in 1997, and the Global Financial Crisis in 2007-2008. In 2015, prices decreased due to stronger (than expected) supply and weaker demand, when the El Ni\u00f1o event did not turn out to be as bad as feared.<\/p>\n\n\n\n<p>This all suggests that El Ni\u00f1o does not usually play the lead role in global commodity price movements.<\/p>\n\n\n\n<h2>Impacts on wheat supply<\/h2>\n\n\n\n<p>Why? Because El Ni\u00f1o does induce crop failures, but for food grown around the world the losses tend to be offset by positive changes in production across other key producing regions.<\/p>\n\n\n\n<p>For example, it can bring favourable weather to the conflict-ridden and famine-prone Horn of Africa (Djibouti, Ethiopia, Eritrea and Somalia).<\/p>\n\n\n\n<p>A good example is wheat.<\/p>\n\n\n\n<p>The following chart shows how El Nino has affected Australian wheat production since 1980. In six out of nine El Ni\u00f1o events of at least moderate strength, production has dropped significantly \u2013 in four cases, at least 30% below the \u201ctrend line\u201d (representing the long-term average).<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-datawrapper wp-block-embed-datawrapper\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"El Ni\u00f1o and Australian wheat production\" src=\"https:\/\/datawrapper.dwcdn.net\/03om6\/2\/#?secret=1RRzbEHJrV\" data-secret=\"1RRzbEHJrV\" scrolling=\"no\" frameborder=\"0\" height=\"400\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Australia is one of the world\u2019s <a href=\"https:\/\/www.tridge.com\/intelligences\/wheat\/export\">top three wheat exporters<\/a>, accounting for about 13% of global exports. So its production does affect global wheat prices. But in terms of total wheat grown it\u2019s less significant \u2013 about <a href=\"https:\/\/www.aegic.org.au\/australian-grains\/wheat\/#:%7E:text=Australia%20produces%20about%2025%20million,cent%20of%20annual%20global%20production\">3.5% of world production<\/a>. And El Ni\u00f1o-induced crop failures tend to be offset by production in other key wheat-producing regions.<\/p>\n\n\n\n<p>The next graph compare changes in Australia\u2019s wheat production with other significant wheat exporters in El Ni\u00f1o years. Dips in Australia\u2019s production tend tend to be offset by changes elsewhere.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-datawrapper wp-block-embed-datawrapper\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"El Ni\u00f1o effects on five major wheat exporters\" src=\"https:\/\/datawrapper.dwcdn.net\/il3yD\/4\/#?secret=Oit3WXaoBg\" data-secret=\"Oit3WXaoBg\" scrolling=\"no\" frameborder=\"0\" height=\"317\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>In 1994, for example, Australian wheat production dropped nearly 50% but barely changed elsewhere. In 1982, when Australian production dropped 30%, Argentina\u2019s production was 50% higher. Such balancing patterns tends to be present across most El Ni\u00f1o years.<\/p>\n\n\n\n<h2>But some will bear the cost<\/h2>\n\n\n\n<p>That said, there will be at least some negative effects. Even if crop failures in one region are fully offset by rich harvests in others, some people are going to bear the costs of El Ni\u00f1o\u2019s direct impact.<\/p>\n\n\n\n<p>Australian farmers, for example, will be worse off if local wheat yields drop while global prices remain relatively stable.<\/p>\n\n\n\n<p>Moreover, because most countries are connected via trade, El Ni\u00f1o will have wider <a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S0022199617300120\">economic impacts<\/a>. It could still lead to deeper societal issues in some region, such as famine and <a href=\"https:\/\/www.nber.org\/papers\/w28243\">agro-pastoral conflicts<\/a>.<\/p>\n\n\n\n<p>These effects may also be nuanced. For example, poor harvests in Africa may mitigate seasonal violence linked with the appropriation of <a href=\"https:\/\/doi.org\/10.1111\/ajae.12364\">agricultural surpluses<\/a>. But considering other vulnerabilities around the world, the odds are that even a moderate El Ni\u00f1o will make already dire socio-economic conditions in some countries worse.<\/p>\n\n\n\n<p>Most of the usual warnings about the caveats of climate change apply here. The difference, of course, is that all this is happening now.<\/p>\n\n\n\n<p><a href=\"https:\/\/theconversation.com\/profiles\/david-ubilava-1181215\">David Ubilava<\/a>, Associate Professor of Economics, <em><a href=\"https:\/\/theconversation.com\/institutions\/university-of-sydney-841\">University of Sydney<\/a><\/em><\/p>\n\n\n\n<p>This article is republished from <a href=\"https:\/\/theconversation.com\">The Conversation<\/a> under a Creative Commons license. Read the <a href=\"https:\/\/theconversation.com\/what-this-years-el-nino-means-for-wheat-and-global-food-supply-209386\">original article<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David Ubilava, University of Sydney The World Meteorological Organization has declared the onset of the first El Ni\u00f1o event in seven years. It estimates 90% probability the climatic phenomenon, involving an unusual warming of the Pacific Ocean, will develop through 2023, and be of moderate strength. El Ni\u00f1o events bring hotter, drier weather to places [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":34529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[277],"tags":[216,139,9953,1038,2851],"_links":{"self":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/34528"}],"collection":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/comments?post=34528"}],"version-history":[{"count":2,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/34528\/revisions"}],"predecessor-version":[{"id":34538,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/34528\/revisions\/34538"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media\/34529"}],"wp:attachment":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media?parent=34528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/categories?post=34528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/tags?post=34528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}