Unless you’ve spent your entire summer in a cool, pristine 72-degree underground shelter, you’ve probably noticed that this summer has been exceptionally hot. Perhaps you’ve spent the past three months walking your dog early in the morning and after sunset, or have watched your front garden turn into a lifeless graveyard of dry shrubs. Many of us have had to make adjustments to our lives thanks to strained water supplies and extremely high temperatures.
Unfortunately, summer drought has become the norm over the past few years, especially in the American Southwest. Looking ahead, the state of the atmosphere guarantees a dry and hot summer ahead. Climate and weather disasters also come with a significant cost – in 2021, they cost US$145 billion.
Many industries around the world are already experiencing major disruptions to their business thanks to excessive heat. Electricity bills are set to increase as heat waves push residential users to demand more energy to cool their homes. And the means by which we power our bodies is getting more expensive, too. Between the effects of weather on the agricultural industry and spiraling inflation, a trip to the grocery store hits pocketbooks more than ever.
Livestock and drought
Collect hamburgers while you can, my friends, because according to Restaurant Dive, beef prices are expected to rise by a whopping 15%. This summer’s record drought caused by intense heat waves has forced most livestock farmers to sell their flocks early for slaughter. In fact, according to the USDA, 60% of the country’s livestock are affected by drought.
Thanks to this necessary step, the number of livestock is likely to be affected in the next few years. So not only do you expect to see a higher price on a smaller piece of beef, but you may have to wait until as late as 2025 to see the supply improve.
The past three months have seen a significant drop in beef prices due to these early sales of the herd. But according to experts, time to find fish fillet to steal at your local grocery store is running out.
It’s time to savor your meat options
While beef is on the cusp of becoming startlingly scarce, it is very likely that we will see a major deflation in poultry prices. The price of chicken has risen over the past few years, and seen an increase in value when Sanderson Farms was acquired by Continental Grain. (SAFM) $4.5 billion. But according to Restaurant Dive, the price of poultry is about to soar for the everyday shopper.
Alternative meat companies like Beyond Meat (BYND) And Impossible Foods, this could be a time of growth for shareholders as consumers explore other ways to enjoy cooking the classic hamburger. The report did not include any forecasts for the Pork and Seafood industries.
For the fast food world, your favorite fast food burger might be in store for a price hike, too. Meanwhile, chicken-based companies such as Raising Canes, Chick-Fil-A and Wing Stop (wing) Popeyes (PLKI) More could see the price of chicken drop.
