Threat of ‘heatflation’ looms large as climate change shrinks farm and seafood output, experts say

is there for all to see. The rising temperatures and frequency of floods and droughts is threatening agriculture and fishery around the world, with climate experts warning of “heatflation” – higher food prices driven by rising temperatures and smaller harvests.

As temperatures trend upwards in China, combined with increased frequency and intensification of droughts, it will have a detrimental effect on rice yields in southern and eastern China, by limiting photosynthesis and lowering pollen production, according to a report published last November by Fitch Solutions.

The situation will be worsened by decreasing rainfall. Agriculture is the most water-intensive industrial sector in China, consuming around 60 per cent of national water withdrawal. In fishery, scientists have called for immediate action over the next 10 years to prevent irreparable damage to Asia’s key oceans due to rising ocean temperatures and overfishing.

Experts said measures like farm insurance schemes can help farmers become financially resilient and allow them to bounce back from extreme weather events. Diversifying production towards more drought-resistant staples could also soften supply shocks under difficult weather.

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