As tumultuous weather patterns take hits on crops across the world, raisins have become the latest victim of the volatility.

Heavy rains hit grape vines in Chile, one of the world’s key producers, back in January. The excess moisture ended up damaging a large swath of the crop. And less grapes, means less raisins. That comes at the same time that farmers have planted less, opting for more profitable options like cherries and walnuts instead.

Taken together, it will mean a 1% drop for Chilean raisin production and exports this year, according to report from a unit of the U.S. Department of Agriculture.

That might seem like a small decline, but in a year when global food costs are already on the rise, every bit of production is needed in a bid to keep inflation in check.

Weather problems have hit production of a variety of crops this year as climate changes makes it increasingly hard to grow food:

• Drought is withering grains on both sides of the U.S.-Canadian border, prompting farmers to take the rare measure of baling up their wheat and barley stems to sell as hay.
• In Brazil, the world’s biggest coffee supplier, some of the coldest conditions in more than 25 years are dimming hopes for supplies.
• Torrential rains in Germany have repeatedly interrupted the grains harvest.
• And the Henan province of China, a hub for agricultural and food production, has also suffered from flooding.

Meanwhile in Chile, raisin production may have escaped the harder blow that the excess rains took on output of fresh table grapes. Farmers often prefer to sell their grape crops as the fresh variety, and then use the leftovers for raisins, juice, or wine production, the USDA report said.

But the rain damage “made the grapes more susceptibility to fungal infections and less apt to survive the long distances to export markets,” the agency said. The moisture was less damaging to raisins since they’re dried and processed.

—Alejandra Salgado in California

Charted Territory

Partners In Wine

Hong Kong makes it into the top five for Aussie wine export markets

Source: Wine Australia

Australian wine companies may have hit a big roadblock in getting bottles to China because of sky-high tariffs. But the road to Hong Kong appears to be wide open. Shipments to the city rocketed 111% in the 12 months ended June 30, according to the latest data from Wine Australia. That compares with a steep 45% drop in exports to mainland China. The Hong Kong market still pales in comparison to the mainland, and China remains the largest wine market for Australia by value. But Hong Kong has now jumped to the No. 4 position, up three spots from a year earlier. 

Today’s Must Reads

• Food waste crisis | More than 2 billion tons of food goes uneaten around the world, almost double than previously thought, according to a new report.
• Painful pings | British food producers, retailers and pub chains are sounding the alarm after a surge in coronavirus cases removed employees from the workforce as people comply with rules on isolation.
• Freezing beans | The severe frost that ravaged major arabica-coffee areas in Brazil earlier this week is especially deadly for young trees, which could mean greater losses for farmers and hurt production for years.
• Argentine shipping | Traders dealing in vegetable oil are scurrying to get a read on expectations that the world’s biggest supplier of soybean oil could ramp up exports by almost 10%.
• Hog farm flooding | The heavy rains that pounded Henan province in central China will cause damage to some hog farms in the major pork-producing region and potentially trigger fresh cases of African swine fever.
• Covid malnutrition | The economic crisis and food system disruptions from the Covid-19 pandemic will worsen the lack of nutrition in women and children, with the potential to cost the world almost $30 billion in future productivity losses.
• Vegan bacon | Plant-based bacon is carving out space in the frying pan. Sales are up 25% — almost double that of meat-based bacon for the 52-week period ending April 18.

On the Bloomberg Terminal

• Dairy inflection | Raw-milk prices in Europe could come under pressure as import countries such as China increase their dairy herds to address food security, according to Bloomberg Intelligence.
• Revved up | Elevated crop prices, strong orders and reduced inventories may support a multiyear ag-equipment recovery, Bloomberg Intelligence writes.
• Use the AHOY function to track global commodities trade flows.
• Click HERE for automated stories about supply chains.
• See BNEF for BloombergNEF’s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.
• Click VRUS on the terminal for news and data on the coronavirus and here for maps and charts.

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