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Epic Economist, 10/3/23
"15 Shortages That Will Hit Stores This Winter"
"As we approach the busiest season of the year for supply chains, new product shortages seem to be popping up every week. From cleaning products to breakfast staples to auto equipment, the list of out-of-stock items continues to grow, and conditions are likely to get very chaotic at U.S. stores as shoppers prepare for end-of-the-year festivities.
For instance, another fall veggie is in short supply this year. As we previously reported, droughts and flooding resulted in a significant drop in pumpkin production in 2023. And the same has happened to squash crops. Not only in the U.S. but all around the world, squash producers have been witnessing some of the worst weather conditions in history. During the planting season, the soil is too moist, which can lead to early spoilage and fungus. Meanwhile, during the growing season, drought has led to some of the hottest temperatures on record, which can alter the veggie’s flavor and development. Now that harvest season has begun, many farmers are having to discard a big share of their produce instead of sending it to the stores. In the coming weeks, we will start seeing the effects of this at our local grocery stores. If you spot the veggie on shelves, don’t miss the chance to buy it early in the season, because later on prices will go through the roof, and that’s if you’re lucky to find it.
Moreover, a hazelnut shortage is about to trigger huge price hikes for Nutella in the coming months, and make the delicious chocolate spread harder to find at U.S. stores. The product is made with Turkish hazelnuts, but this year, the country, - which produces 70% of the world’s hazelnuts, - reported a sharp decline in hazelnut supply after a hail storm destroyed hazel flowers at a critical moment in the growing season. Hazelnut production is influenced by various factors, including weather conditions, agricultural practices, and global market demand. In California, the U.S. biggest grower of the nut, abnormally dry weather damaged crops and impacted this year’s harvest, causing hazelnut production to fall 2.9% compared to 2022 levels, and failing to provide a supply boost to food makers. Right now, hazelnut prices are already soaring, up by 60% since January, a 10-year-high. The Ferrero Group, who make Nutella, consumes nearly 25% of the entire world's supply of hazelnuts, and they are likely to pass on those increased costs to consumers in the form of higher prices over the next couple of months, meaning that now is the time to purchase this sweet chocolate paste if you don’t want to spend the holiday season without it.
Many things can happen to our supply chains before 2023 ends, and by the look of things right now, more shortages are likely to emerge over the next couple of months. It seems like this is just the beginning of a major crisis that will rock the country through the fall and winter. Even people's favorite restaurant dishes, including guac and seafood, are getting far more expensive and harder to find given that production levels are failing to meet consumer demand. The months ahead will be marked by empty shelves and price hikes as the U.S. industry faces a myriad of challenges that we're about to expose in today's video. We tracked the latest supply shortages gripping the system and which products you should start stocking up in October. So let's check this list!"
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