Grocery bills are rising as the planet cooks
Why it matters: With everyday essentials such as coffee rising 13.4% since last June, American families are feeling the pinch at the supermarket, as climate change and other factors decrease predictability in food costs.
Trump's volatile tariff policies have not yet caused the price of food essentials to soar, but signs of inflation is beginning to show amid Trump's trade war, Axios reported last week.
Zoom in: The price of uncooked ground beef is up 10.3% over the last year, and the climate change is having ripple effects on multiple essential food items.
A multi-year drought in the Great Plains led to higher feed costs for ranchers, shrinking cattle herds at a time where farms in the U.S. are declining more broadly, according to a U.S. Department of Agriculture report.
Coffee is up 13.4% since last June, in part because of crop losses from heat and drought in major coffee-producing countries such as Brazil and Vietnam. More than 99% of America's coffee must be imported, with roughly 80% of un-roasted beans shipped in from Columbia and Brazil, according to the USDA.
Yes but: Not all food inflation is climate-related. Eggs are up an eye-popping 27.3% this year, and chicken was slightly impacted at 3.9%, after bird flu led to mass culling of flocks.
The Center for Disease Control and Prevention announced that bird flu is no longer an emergency earlier this month.
Zoom out: Climate change is beefing up extreme weather across the U.S., making it harder for grocers to keep shelves stocked.
Heavy rainfall can harm food production by eroding soil and depleting the ground of nutrients, according to the Environmental Protection Agency.
Extreme heat can deplete the amount of water in soils, causing significant declines in crop and livestock productivity, according to the National Integrated Drought Information System.
Driving the news: Extreme weather is contributing to global price shocks worldwide, according to a new report published Monday from the Barcelona Supercomputing Center.
Spain produces over 40% of the world's olive oil. After an intense drought across Southern Europe from 2022 to 2023, the price of olive oil to shot up 50% across the European Union by January 2024.
In Japan, an August heatwave sent rice prices up 48% by September 2024, as the country experienced its hottest summer since officials began collecting regional records in 1946.
Global cocoa prices were almost 300% higher in April 2024 after a heatwave in Ghana and Ivory Coast. The region produces about 60% of the world's cocoa.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
New Tariffs Threaten American Battery Production
Trump-era clean energy policies are slamming the breaks on the United States' battery war with China. While lithium-ion batteries were invented in the United States, China has been outpacing the nation in terms of both battery manufacturing and technological innovations. But while U.S. companies have been scrambling to keep up, gutted clean energy incentives and tariffs on critical materials have made a U.S. victory all but impossible. The domestic battery industry had been gaining considerable ground under the Biden administration thanks to major incentives including the sweeping Inflation Reduction Act. Tax credits, in particular, 'helped close the price gap between U.S.-made batteries and those made in China, the world's main supplier of lithium-ion battery modules, cells, and materials,' according to Canary Media. Realizing that the Trump administration would bring a less encouraging policy environment for clean energy technologies, makers of lithium-ion batteries promised the federal government that they would collectively spend a cumulative $100 billion by 2030 to build up an independent and totally domestic grid battery industry. In exchange, they asked for continued political support. So far, that plea seems to be falling flat. Just this month, the Trump administration accused Chinese suppliers of dumping graphite into U.S. markets – meaning that they are selling graphite more cheaply abroad than in their own markets. As a result, the United States has imposed a formidable 93.5 percent tariff on Chinese graphite. This could have immediate and serious consequences for United States batterymakers, as almost all refined graphite in the world comes from China. In fact, this tariff alone could 'easily add $1,000 or more to the price of a battery' according to the New York Times. As a result, the nation's once-thriving 'battery belt' is faltering. 'Projects are being paused, cancelled, and closed at a rate 6 times more than during the same period in 2024,' reports 'The Big Green Machine,' a site affiliated with Wellesley College that tracks domestic clean energy investments. And this biggest projects are the ones suffering most. Politico reports that 'prospects dimmed for 34 projects that are worth more than $31 billion and were expected to create almost 28,000 jobs.' This includes projects that are either paused, canceled, delayed by at least six faced by a slash in funding, or scaled down. But the overall impact of recent political shifts are still unclear, and overall the domestic clean energy sector is still growing. Related: 'The policies Republicans have passed are so recent that they may not have worked their way through the economy,' reports Politico. 'In the last three months, Congress has passed and President Donald Trump has signed bills that removed key tax credits, taken the teeth out of fuel-economy rules and neutered California's ability to force automakers to sell EVs.' Taken together, all of these compounding policy measures create an uncertain policy and investment environment at minimum. More likely, it will cause an extreme contraction of the domestic battery sector at a time when Beijing was already pulling away. "Unquestionably, the Chinese are ahead in manufacturing technology," Bob Galyen, a retired executive who worked with both GM and the Chinese battery giant CATL, told NPR. He says that Chinese battery research and development is receiving major influxes of cash at a time when U.S. manufacturers are struggling for funding. "Clearly, the U.S. is lagging behind,' he finished. Ironically, these measures are hitting Republican districts the hardest. The so-called 'battery belt' is mostly comprised of red states. As a result, according to Politico, 'GOP districts saw 60 percent of the funding decline, while Democratic districts saw 39 percent.' By Haley Zaremba for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
37 minutes ago
- Yahoo
Is Stanley Black & Decker (SWK) One of the Best Income Stocks for Conservative Investors?
Stanley Black & Decker, Inc. (NYSE:SWK) is included among the 11 Best Income Stocks to Buy According to Hedge Funds. A toolbox filled with an array of different tools, representing the professional products of the company. Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturer known for its industrial tools, home hardware, and security products. The company is in the midst of a steady yet impactful transformation. It has already completed $1.7 billion of a planned $2 billion cost-reduction effort, resulting in a rebound in gross margins to 31.2%, which is a 1,200-basis-point improvement from the low point. At the same time, operating leverage is strengthening, and inventory levels are declining. While Stanley Black & Decker, Inc. (NYSE:SWK)'s Tools & Outdoor division accounts for 87% of its revenue, the smaller Engineered Fastening segment plays a key role in areas like aerospace, automotive, and industrial production. Despite its strong market position and ties to reshoring, infrastructure, and automation trends, the stock is still down more than 69% from its 2021 peak and trades at under seven times its peak free cash flow. Stanley Black & Decker, Inc. (NYSE:SWK) has paid uninterrupted dividends to shareholders for the past 148 years. On July 24, it declared a 1.2% hike in its quarterly dividend to $0.83 per share. This marked the company's 59th consecutive year in which it has raised its dividends. The stock supports a dividend yield of 4.91%, as of July 31. While we acknowledge the potential of SWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
37 minutes ago
- Yahoo
Realty Income Corporation's (O) Dividend History Makes It a Solid Income Stock
Realty Income Corporation (NYSE:O) is included among the 11 Best Income Stocks to Buy According to Hedge Funds. Aerial view of high-rise buildings representing the investing and ownership of Equity Real Estate Investment Trust. Realty Income Corporation (NYSE:O) is an American real estate investment trust company. The company's broad and varied portfolio produces steady and increasing cash flow, which supports both dividend payments and the growth of its global real estate holdings. Realty Income Corporation (NYSE:O) has also moved into credit investments, such as real estate loans and preferred equity, and is introducing a private capital fund management platform. These new initiatives are creating additional investment opportunities. Backed by one of the strongest financial foundations in the REIT industry, the company is well-positioned to keep growing its portfolio while also boosting earnings and dividends. Realty Income Corporation (NYSE:O) is committed to providing shareholders with reliable monthly dividends that increase over time, a goal it has consistently met. Since going public in 1994, the company has paid 661 consecutive monthly dividends and raised its payout 131 times. It has increased its dividend every quarter for 131 straight quarters and maintained annual dividend growth for 30 consecutive years. It currently pays a monthly dividend of $0.269 per share and has a dividend yield of 5.75%, as of July 31. While we acknowledge the potential of O as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
