Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

US Vegetable Prices Soar Nearly 40% as Water Cuts Crush Supply

Published 09/12/2022, 19:24
© Reuters.

(Bloomberg) -- Prices for vegetables have almost doubled since last year after the states that grow fresh produce for the US winter saw water cuts and storms that decimated supply.

Vegetable prices saw a 38% jump in November from the prior month, according to the Labor Department’s latest producer price index data. On a year-over-year basis, the surge was more than 80%. The figures come as food costs have been rising at unprecedented levels, cutting into consumer wallets as families recover from the global pandemic.

Farmers in Arizona, who provide more than 90% of the US’s leafy greens each November through March, have seen cuts to the amount of water they receive from the Colorado River. The US has announced it will withhold about a fifth of the water the state’s farmers get in 2023 as climate change and drought diminish the basin.

Read More: Colorado River water cuts to hammer US winter-lettuce hub

California, the top agriculture state in the US, has faced drought this year that led to $3 billion worth of losses. And in Florida, which is the top US supplier of fruits and vegetables in the fall and winter months, experienced a storm that cost the produce industry in the state nearly $2 billion.

©2022 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.