Conflicts, energy shocks, climate change, and the El Niño weather pattern are combining to push food prices upward. These factors have created a challenging environment for food production over the past year, and their effects are likely to be felt in grocery bills this winter. Farmers are dealing with increasingly unpredictable weather influenced by climate change and El Niño, while international conflicts have increased the cost of fuel, fertilizers, and other essential inputs. These pressures work together: erratic weather reduces crop yields, and higher costs for fertilizers and energy make food production more expensive. This will not only affect farmers and consumers but could also impact the quality, quantity, and nutritional value of food, as manufacturers may turn to cheaper alternatives to manage rising prices.
Chocolate is more than a treat—it supports the livelihoods of nearly 6 million smallholder farmers, mostly in West Africa. Cocoa trees are sensitive to environmental changes, and while droughts have long been a concern, recent research shows that heavy rainfall can also harm yields. Excess rain can reduce pollination by flying insects and increase the risk of fungal diseases that destroy crops. The current El Niño, expected to last until 2027, could worsen these weather extremes, causing both drought and heavy rain in cocoa-growing regions. These conditions led to a significant price spike in 2024, with some chocolate bars costing over 60% more than in 2021. Although prices have since dropped slightly, they remain above historical levels and are expected to rise again this year due to poor yields. As cocoa becomes more expensive, manufacturers may switch to cheaper ingredients like palm oil to keep costs down, even though it may change the texture and quality of the final product.
Potatoes are a staple in European diets, offering a healthy and affordable source of starch. However, they require a lot of water to grow, and this year’s extremely dry summer has placed significant stress on crops. Reports suggest that UK and European potato harvests could be 3.5 million tonnes lower than expected—roughly 5kg per person in Europe. With demand for potatoes being relatively stable, the sharp drop in supply is likely to lead to higher prices. This could place additional pressure on household budgets, pushing shoppers to consider alternatives like oats, barley, beans, or lentils.
Leafy greens such as spinach and lettuce are particularly vulnerable to heat and water stress due to their shallow roots and high water content. Similar to potatoes, their yields have been impacted this year. High temperatures cause these plants to mature too quickly, while drought conditions limit the water available for irrigation. These stressors also make the crops more susceptible to pests. As a result, retailers may need to increase imports from countries like Spain, which have more resilient farming systems. This highlights a lack of preparedness in the UK’s food production system, which needs urgent attention to improve resilience against extreme weather.
Wheat, a key ingredient in bread, is grown without irrigation and depends on timely rainfall. This year’s prolonged summer drought has led to significantly lower wheat yields in the UK than recent averages. However, wheat only accounts for about 10% of the cost of a typical loaf of bread. Rising energy costs and other overheads passed on to bakeries—such as the energy needed to run mills and bake bread—are also contributing to higher prices. This means that even a poor wheat harvest is just one of several factors likely to push bread prices up in the coming months. Like potatoes, bread has long been seen as an affordable staple, so even a small price increase could add up for consumers over time.
Olive oil prices have fallen from a peak in 2024, but they are expected to rise again soon. Olive trees are fairly resilient but still need adequate water and favorable temperatures. For example, 70% of Spain’s olive groves rely on rainwater. However, recent years have seen more frequent droughts and extreme heat across the Mediterranean, with wildfires affecting groves in Greece, Italy, and Portugal this year. These conditions are likely to reduce olive yields and raise the price of olive oil. This could create a nutritional challenge for shoppers, as olive oil is rich in antioxidants and healthy fats important for heart and brain health. When prices rise, consumers may be forced to choose more affordable alternatives, potentially sacrificing these health benefits.
Climate, Conflicts, and El Niño Impact Global Food Prices and Supplies
AI-rewritten from original reportingHow it works
food-pricesclimate-changeel-ninoagriculturecrop-yieldsenergy-costs



