Sunday, February 13, 2011

Food Distributor Sysco: Prepare for Food Price Inflation as Freezing Temperatures and/or Global Warming Kill 80-100% of Mexico's Harvest

I forget: is the proper term global warming or climate change? Either way, the following memo from food giant Sysco appears rather dire (PDF).

All of our growers have invoked the act of god clause on our contracts (force majuere) due to the following release:

The extreme freezing temperatures hit a very broad section of major growing regions in Mexico, from Hermosillo in the north all the way south to Los Mochis and even south of Culiacan. The early reports are still coming in but most are showing losses of crops in the range of 80 to 100%.

Even shade house product was hit by the extremely cold temps. It will take 7-10 days to have a clearer picture from growers and field supervisors, but these growing regions haven’t had cold like this in over a half century.

This time of year, Mexico supplies a significant percent of North America’s row crop vegetables such as green beans, eggplant, cucumbers, squash, peppers, asparagus, and round and roma tomatoes.

Florida normally is a major supplier for these items as well but they have already been struck with severe freeze damage in December and January and up until now have had to purchase product out of Mexico to fill their commitments; that is no longer an option.

With the series of weather disasters that have occurred in both of these major growing areas, we will experience immediate volatile prices, expected limited availability, and mediocre quality at best.

This will not only have an immediate impact on supplies, but because of very strong blossom drops, this will also impact supplies 30 – 60 days from now. Some growers are meeting with their boards right now to determine whether they should immediately re-plant, hoping for a harvest by late-march-to-early-april, or whether they should disc the fields under and wait for another season.

We are doing everything we can with our growers to minimize the effect of this disaster on you. With the unprecedented magnitude of this event we wanted to immediately make you aware of the conditions. We will continue to send out communications as our people on the ground report back to us. We thank you and we appreciate your understanding during this time.

Good thing the EPA is on the case, harnessing all of that extra CO2.

I don't know what we'd do without 'em.

Hat tips: D&S, Food Freedom, Steve Quayle and Sysco.


Lynn said...

Don't forget the Mexican pot growers. Thats a significant portion of Mexico's exports.

Anonymous said...

What the hell does the EPA have to do with this article? It is Global Climate Change Dumbass!

Iron Monkey said...

Anon @ 11:31 pm.

Exactly! What the hell does the EPA have to do with this? They are trying to cap CO2 emissions via regulations that won't have any impact on Global Climate Change!

Wait, ain't it Climate Chaos now?

Lynn, the 420 crowd will be sad, since Climate Chaos can wreak hell with their favorite crop. I wonder if they have a counterpart to the "locavore" movement?

AL said...

Well on the bright side... Salmonella cases should be down for 2011.