ǿմý

Skip to main content

Hurricane Ian could push food prices even higher

Share

Hurricane Ian is the latest natural disaster to impact food prices. The storm hitting Florida is already forcing orange juice futures to spike, and it may soon squeeze the country's fertilizer supply — which could have a far-reaching impact.

Prices for frozen concentrate orange juice contracts hit roughly $1.92 USD per pound earlier on Wednesday, an increase of more than 5% from Tuesday, before moderating slightly.

Florida is a leading citrus producer, including oranges and grapefruit. At least 75% of the Florida citrus belt is under threat of heavy flooding rains over the next 36 hours, according to satellite imagery provider Maxar Technologies.

Maxar's WeatherDesk finds that at least a third of the groves are likely to see some wind damage, mostly in the northwestern portion of the citrus belt.

Orange juice futures are up almost 30 per cent so far this year. And the timing of the storm is difficult for farmers in Florida as citrus crops are nearing harvest season.

"There will be quite a bit of fruit drop and losses of fruit from the trees," Maxar said.

Citrus production was already under significant pressure even before Hurricane Ian.

In July, the U.S. Department of Agriculture estimated US production of oranges would drop by 13 per cent in 2021/2022 to the because of the drought in California and . Citrus greening is a disease that causes trees to produce less fruit that is smaller in size. As a result juice producers have to use more oranges per bottle, raising their costs and leading to price hikes for consumers.

Orange and tangerine prices spiked 14.4% for the year through August. The price of juice and other non-alcoholic drinks went up 13.1 per cent in that period.

FERTILIZER SUPPLY COULD GET SQUEEZED

Meanwhile, a major producer of the phosphates used in fertilizer is based in Tampa, where the storm is predicted to hit hard. The producer, Mosaic, says it provides half of all granular phosphate sold to North American farmers.

"In anticipation of substantial impact from Hurricane Ian, we have taken the appropriate steps to protect our people, mines, plants, port facilities and administrative offices," William Barksdale, director of Mosaic's corporate communications, said in the statement.

Mosaic said employees at its Tampa corporate office and other locations are working remotely. The company said it continues to complete preparations at its phosphate mining and production facilities in Florida as well as in Louisiana, adding that those preparations began last week.

When farmers spend more on fertilizer they either on the crops they grow, or cut back and shrink supply. Either way, higher prices get passed along to consumers.

is one of the main factors contributing to the massive price surge: Droughts have and destroy their own crops. In recent years, and killed livestock.

The storm comes at a time when consumers are already seeing record increases in food prices. Food costs this year have spiked 11.4 per cent through August, the , according to the Bureau of Labor Statistics.

Grocery prices jumped 13.5 per cent and restaurant menu prices increased 8 per cent in that time period.

-— CNN's Chris Isidore and Vanessa Yurkevich contributed to this report.

CTVNews.ca ǿմý

Since she was a young girl growing up in Vancouver, Ginny Lam says her mom Yat Hei Law made it very clear she favoured her son William, because he was her male heir.

An Ontario man says it is 'unfair' to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.

The province's public security minister said he was "shocked" Thursday amid reports that a body believed to be that of a 14-year-old boy was found this week near a Hells Angels hideout near Quebec City.

Local Spotlight

They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.

A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.

Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.

The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.

The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.

It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.

A Good Samaritan in New Brunswick has replaced a man's stolen bottle cart so he can continue to collect cans and bottles in his Moncton neighbourhood.

David Krumholtz, known for roles like Bernard the Elf in The Santa Clause and physicist Isidor Rabi in Oppenheimer, has spent the latter part of his summer filming horror flick Altar in Winnipeg. He says Winnipeg is the most movie-savvy town he's ever been in.

Edmontonians can count themselves lucky to ever see one tiger salamander, let alone the thousands one local woman says recently descended on her childhood home.