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Pumpkin pie prices higher, thanks partly to climate change

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The Pie Shop Washington, D.C.

CNBC

As Americans sit down to their Thanksgiving meals, they will notice that many of the dishes on their plates are more costly than last year. Particularly pie. Climate change can also be a factor.

Every sector of the economy is affected by inflation, including food products. Many of the ingredients used in holiday pie crusts have suffered from droughts, floods and fires. This has led to a shortage and higher prices.

The crust is one example. The wheat prices have risen more than 10% since last month, bringing them to their highest point since 2012. According to the U.S. Department of Agriculture, severe droughts on the U.S. western and northern plains resulted in what they estimate will be the worst production of wheat in almost two decades.

Alfalfa and wheat are both more expensive, which causes milk prices to increase. During droughts, cows produce less milk.

Next, there is the filling.

Between the drought and the heat, the year in the Pacific Northwest was a disaster. “We saw many things they excel at like apples and cherries see a significant hit to production,” Michael Swanson from Wells Fargo, an agriculture economist, said.

Due to the shortage of pumpkins, they are more expensive. This fall, the average pumpkin price was 15% higher.

Even honey. Honeybees were left starving after wildfires in West. Due to starvation, disease and other unusual conditions, nearly half of the honeybee colonies have been lost in states like California, Colorado and Montana.

The same goes for imports. The severe weather and flooding are also causing an increase in the prices of vanilla from Madagascar as well as chocolate from Brazil.

We are now more concerned about flooding in China and freezes in Brazil than ever before. Swanson stated that we cannot run or hide from severe weather events worldwide because they are all part of our food chain.

The Pie Shop, Washington, D.C., has filled all Thanksgiving orders. The pies keep piling up, and so do the prices.

Sandra Basanti who co-owns the Shop for twelve years with her husband, said that there is a lot of new ingredients.

Basanti is keen to find local ingredients to reduce costs. However, large quantities of flour, sugar, and eggs must be purchased from bulk distributors. Her savory pies require beef and are becoming more expensive.

It is a difficult time for her small business.

“Normally Thanksgiving is the time when we can make some extra cash to help us through the winter. But, I don’t think we will even make it profitable this year,” she stated.

Basanti claimed that her prices have increased by about 10% in 12 years. However, this does not cover recent increases in her production cost. Basanti said that she doesn’t plan to increase prices right now because “there’s only so many you can charge for one pie.”

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