Extreme weather conditions in 2025 – new challenges for the global agricultural raw materials market [World News]

Author
Foodcom Experts
04.04.2025
2 min reading
Extreme weather conditions in 2025 – new challenges for the global agricultural raw materials market [World News]
Summary
Table of contents
  • Climate change causes agricultural raw material prices to rise, including cocoa (163%) and coffee (103%) in 2024.
  • Adverse weather conditions such as droughts lead to an increase in the prices of sunflower oil, butter and orange juice.
  • Forecasts for 2025 indicate continued market volatility and the risk of disruptions in the supply of raw materials.
  • Investing in agricultural technologies and logistical flexibility to adapt to changing climatic conditions is becoming crucial.

Effects of climate change increasingly felt on commodity markets

In recent months, the impact of climate change on the global agricultural commodity market has become increasingly apparent. Market data for 2024 confirms clear price increases for many key products. The price of cocoa has risen by as much as 163%, while coffee has become 103% more expensive. Experts point out that the reasons for such sharp increases were primarily due to intense rainfall and persistently high temperatures in the main production regions in West Africa and South America.

Other commodity categories were not spared by the adverse weather conditions. The drought, which affected Bulgaria and Ukraine, among others, led to a 56% increase in the price of sunflower oil. Orange juice and butter prices, on the other hand, increased by more than a third year-on-year. Such dynamic changes show that climatic instability affects not only crop yields, but also continuity of supply and price predictability. As a result, market participants need to be increasingly flexible and ready to respond to disruptions in supply chains.

Forecasts for 2025 point to further risks and the need to adapt

The latest forecasts show that volatility is expected to continue in the coming months. Extreme weather events could still have a significant impact on agricultural production and the shaping of global markets. The risk of supply disruptions and limited resource availability will be particularly felt in industries based on climate-sensitive raw materials.

In this situation, it becomes crucial to implement solutions that increase the resilience of supply chains. Investment in agro-technology, expansion of raw material sourcing and the development of more flexible logistical structures can all play an important role in mitigating the effects of changing climate conditions. For market players, from producers to distributors, this means adapting to a new reality in which climate becomes one of the most important factors affecting prices and product availability.

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