California is currently being impacted by a severe drought, and it might end up raising the prices of several popular foods. According to data from the National Integrated Drought Information System (NIDIS), the Golden State is already in the midst of its worst water shortage in four years.
Higher food prices will be a stress and a burden for hundreds of millions of people all over the world. Higher food prices will test the stability of governments.
How can drought affect the economy?
Perhaps no other economic activity suffers more than agriculture during a drought. Water is one of the major requirements of most industries. Low water levels due to reduced levels of more, and thus, droughts impact the lowered hydroelectrical production may be important too.
Examples of economic impacts include farmers who lose money because drought destroyed their crops or ranchers who may have to spend more money to feed and water their animals. Economic impacts can be both direct, such as decreases in dairy production, and indirect, as seen by increases in the price of cheese.
The worst drought in decades didn’t just shrivel corn and soybeans. It shrank economic growth too. The government said Friday that the U. Economy grew at a modest 2 percent annual rate from July through September. And the crop-killing drought reduced growth by 0.4 percentage points.
What are the effects of drought in South America?
In South America, drought has destroyed crops like coffee, corn, soybeans, and sugar. Pantry staples in countries such as Mexico and Kenya have soared in price. Plus, the prices of cooking oils have gone up, too.
Yet another inquiry we ran across in our research was “How to reduce the effect of drought?”.
Ways to minimize the 4 types of drought, and drought types. Populations have little direct control over meteorological drought., and conservation efforts. While water conservation is paramount if a region, state or city is under drought conditions, making conservation a habit is also recommended. Charity, smart irrigation, outdoors, or indoors could be important too.
Will California’s Drought affect almonds?
That could have long-term impacts on almond prices given the investment timetable. Other food items could see short-term price increases as well. California produces 100% of U. S.’s sushi rice, an extremely water intensive crop. Due to the drought, it appears its price is also going to increase.