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Drought in China adds pressure to world food prices

By: Dr. Jeff Masters, 2:49 AM GMT on February 23, 2011

The soil lies cracked and broken in China's Shangdong Province, thirsting for rains that will not come. China's key wheat producing region, lying just south of Beijing, has received just 12 millimeters (1/2 inch) of rain since September, according to the Chinese news service Xinhua. If no rains come during the remainder of February, it could become the worst drought in 200 years. The latest precipitation forecast from the GFS ensemble model predicts the possibility of rains of around 1/2 inch for Shandong Province early next week, but these rains would help only a little. A longer-range 2-week forecast from the operational GFS model shows little or no rain for the region from late next week well into March. Columbia University's International Research Institute for Climate and Society (IRI) projects that spring in Eastern China has an enhanced probability of being dry, with only a 20% - 25% chance that the region will see above average precipitation, and a 40% - 45% chance of below average precipitation. So the great drought will likely continue, and China's ability to feed itself may be greatly challenged this year.


Figure 1. A dried cornfield in a mountainous area of Jinan, capital of east China's Shandong Province, Jan. 18, 2011. Image credit: Xinhua/Zhu Zheng.


Figure 2. Drought conditions in China's Shandong Province this February have reached the "Severe" category. Image credit: Beijing Climate Center.

Impact on global food supplies and food prices
According to the Food and Agriculture Organization of the United Nations (FAO), the drought in north China seems to be putting pressure on wheat prices, which have been rising rapidly in the past few months. This has helped push global food prices to their highest levels since the FAO Food Price Index was created in 1990 (Figure 3.) China is the world's largest producer of wheat, and if they are forced to import large amounts of food due to continued drought, it could severely impact world food prices. However, the FAO's regional representative for Asia and the Pacific said in an interview with Reuters last month that the situation is not as severe as in 2008, when global food riots erupted. "In general, the supply/demand situation of food grains has become very tight at the moment but enough stocks means there is no cause for alarm," Konuma said. "We still maintain sufficient stocks, which is about 25 percent of annual production. As long as there are sufficient stocks, that means the world has enough food still to feed the people." However, he said that if food stocks continued to decline over the next few years, there would be cause for concern.

The record food global food prices have been partially driven by two other huge weather disasters, the Russian summer heat wave and drought of 2010, and the Australian floods of December - January 2011. Both Russia and Australia are major exporters of grain. Russia issued a ban last summer on grain exports because of their drought, which slashed the wheat harvest by 40% and damaged soils to such an extent that 10% of Russian wheat fields could not be planted this year. The Russian heat wave of 2010 is now estimated by the Centre for Research on the Epidemiology of Disasters to be the deadliest in human history, with 55,736 deaths. The Australian floods caused at least $1.7 billion in agricultural damage, reducing their wheat crop significantly. Fortunately, bumper crops were harvested in non-flooded areas of Australia, and the winter crop harvest in country was up 19% over the previous year's crop, and was the biggest since 2003 - 2004. Australia has been struggling with severe drought in recent years that caused more agricultural damage than the floods did.


Figure 3. The global price of food between 1990 - January 2011, as measured by the U.N.'s FAO Food Price Index. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of price indices for Cereals, Oils and Fats, Sugar, Dairy, and Meat, weighted by the average export shares of each group. Food prices between 2002 - 2004 are given a benchmark value of "100". Global food prices in January 2011 were the highest since the FAO Index was established in 1990. Image credit: Food and Agriculture Organization of the United Nations.

Drought outlook for Northern Hemisphere summer of 2011
The spike in global food prices this winter raises the concern that a severe drought in a major grain producing region in North America, Europe, or Asia this summer could severely impact grain supplies and food prices. Fortunately, with La Niña conditions over the Eastern Pacific weakening, and possibly abating by summer, the chances for such a drought are lower than they would have been if La Niña were to stay strong into the summer. The latest precipitation forecast from Columbia University's International Research Institute for Climate and Society (Figure 4) shows few areas of drought concern for the coming Northern Hemisphere summer. However, our skill at predicting drought months in advance is limited. For example, IRI's February 2010 forecast of precipitation for the summer of 2010 did not highlight Russia as an area of possible concern for drought, and Russia ended up having one of its worst droughts in history. IRI did highlight the Amazon as a region likely to have below-average summer rains, though, and the Amazon ended up having a 100-year drought last summer.


Figure 4. Global precipitation forecast for June, July and August of 2011, made in February 2011. Only a few scattered regions of the globe are predicted to have above-average chances of drought (yellow colors.) These areas include the Northwest U.S., Southern Brazil, and Northwest China. Image credit: International Research Institute for Climate and Society

Commentary
The recent unrest in the Middle East, which has been attributed, in part, to high food prices, gives us a warning of the type of global unrest that might result in future years if the climate continues to warm as expected. A hotter climate means more severe droughts will occur. We can expect an increasing number of unprecedented heat waves and droughts like the 2010 Russian drought in coming decades. This will significantly increase the odds of a world food emergency far worse than the 2007 - 2008 global food crisis. When we also consider the world's expanding population and the possibility that peak oil will make fertilizers and agriculture much more expensive, we have the potential for a perfect storm of events aligning in the near future, with droughts made significantly worse by climate change contributing to events that will cause disruption of the global economy, intense political turmoil, and war.

I will be doing another post on Thursday or Friday.

The New York Times' Andy Revkin in his Dot Earth Blog has a more in-depth look at the food and climate change issue that I recommend.

Jeff Masters

Drought

The views of the author are his/her own and do not necessarily represent the position of The Weather Company or its parent, IBM.