Floods Destroy Over $3 Billion in Pakistani Crops
The recent deadly floods in Pakistanhave destroy $3.27 billion of rice, cotton and sugar production according to is Farm Minster Naza Muhammad Gondal. The country lost about 2.4 million metric tons of rice (about 80 million bushels) and 10.4 million metric tons of sugar can. The country may also need to import almost 3 million bales of cotton which would be a 1 million bale increase from last year.
The cotton loss is one of the primary reasons why cotton prices have gone of $1 per pound and have reached a 15 year high.
Over 2,400 miles of roads have been destroyed and food inflation for the current year may exceed 20%.
Rice exports may plunge up to 35 percent for the year reaching no more than 3 million tons from last year 4.6 million tons.
About 15 percent of the sugar crop was destroyed and the county may need to import a million tons of raw or refined sugar to meet demand.
It seems almost anywhere we look in the world weather problems are raising the price of food. It will be interesting to see if the trend continues or if things get more back to “normal”.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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