The price of everything that goes into producing crops is surging, threatening to further fan global food inflation.
Food production costs were already high. The pandemic snarled supply chains, making it more difficult — and expensive — to get parts and supplies that are vital for growing crops. Then Russia’s invasion of Ukraine took things to another level, sending markets soaring for fertilizers and for the fuels needed to run farm machinery. Inflation is so rampant that even with rising food prices, farmers are facing increasingly tough margins.
That’s the problem for Eddie Smith, who has been growing mangoes in Australia for 16 years. He estimates his costs have about doubled in that time. To mitigate the squeeze over the years, he’s taken steps like miniaturizing his trees and reducing diesel consumption. But the current, dizzying surge in crude oil is having a pincer-like effect, and for the first time ever, he’s considering winding down the business.
