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It's interesting how some countries are blaming natural occurrences for their supply chain problems.
China is crediting heavy rains for coal production issues (and skyrocketing prices.)
Brazil (a Chinese client state) is claiming crop failure for the rise in coffee prices, pointing to a drought (which has been ongoing since 2019, pre-Covid and with ample time to address it) along with frosts in July.
Though like most explanations, it makes little sense.
If drought was to blame, commodity prices and futures contracts would surely reflect this much earlier. Furthermore, blaming a July frost fails to explain the price acceleration in April.
Sickness and death are more plausible explanations... but ones that would surely anger China.
Death is permanent, binary, and irreversible.
Coffee Prices continue to climb even as Covid cases subside, due to death's irrevocability. But as Brazil's death rate slows... how long will it be until commodity prices follow suit?