El Niño drives sugar output down, threatens to spike prices across food chain

A severe El Niño has triggered a sharp decline in global sugar output, pushing prices upward. The shortage is expected to cascade through interconnected agricultural sectors, starting with ethanol production, which relies heavily on sugar as a feedstock.

The price increases could eventually reach animal feed markets, ultimately affecting the cost of chicken, eggs, and other protein sources for consumers. Analysts warn that this domino effect highlights the vulnerability of food supply chains to climate-driven disruptions.

The broader impact underscores how weather extremes can amplify inflation across multiple food categories, from grains to proteins, placing pressure on household budgets.