TAIPEI, September 16, 2024 – Tomorrow is the Moon Festival, but the increasing costs are straining people’s wallets. Due to the impact of extreme weather over the past decade, food prices in Taiwan are at record highs, and the effects of “climateflation” have long permeated daily life. Today (16th), Greenpeace, in collaboration with “Douceur Network”（大享食育協會）, held a press conference titled “月來月貴—氣候通膨中秋市集”. At the event, common ingredients of the Moon Festival were displayed, allowing attending legislators and the public to experience the potential impacts of climate inflation on food prices. Greenpeace urged the National Climate Change Committee to include the issue of “climateflation” in their agenda and called on the Ministry of Economic Affairs, the Ministry of Finance, the Ministry of Environment, and the Ministry of Agriculture to collaborate on developing countermeasures.
Greenpeace’s analysis on data from 2014 to 2023 [1] found that common ingredients for Moon Festival barbecues, including scallions, water bamboo, corn, bell peppers, clams, and pork, have been continuously affected by droughts, heavy rainfall, and other extreme weather events. On average, their prices have risen by nearly 40% over the past decade, with corn, scallions, and bell peppers seeing the most significant increases. Corn prices have risen by 40%, green scallions by 50%, and bell peppers by 90%[2]. In recent years, severe droughts in the main producing countries have driven up the price of imported feed corn, while frequent extreme heat has caused heat stress in livestock, leading to a more than 40% increase in the price of duck eggs, a key ingredient for mooncakes. Meanwhile, pork has seen a nearly 30% price increase[3].
Lydia Fang(方君維), the Campaigner of Greenpeace, stated that climate change has profound economic impacts. Passive carbon reduction measures have resulted in more frequent extreme weather, and the influence of “climateflation” has been strengthening year by year. These events also directly affect popular festival foods like mooncakes. In 2021 and 2022, severe droughts in major corn-exporting countries such as the U.S. and Argentina, and frequent extreme heat in Taiwan have affected duck egg production. In just the last two years, duck egg prices have risen by NT$24/ kg, accounting for 70% of the total price increase over the past 10 years. Prices have surged from NT$71/ kg to NT$104/ kg, directly affecting mooncake costs. According to media reports, some mooncakes this year are priced as high as NT$170 each.
Jalin Huang (黃嘉琳), Secretary General of the Douceur Network, noted that the cost of school lunches has risen continuously, and parents are aware of the rising prices of raw materials and food. One of the reasons for the increase is the instability of harvests and product quality due to extreme weather, resulting in reduced yields. Japan and South Korea are experiencing similar situations as Taiwan, facing skyrocketing school lunch costs due to the rising price of ingredients. For example, Japan experienced the “Reiwa Rice Shortage” this summer, and Korea also experienced panic over a potential “Kimchi inflation” due to a reduction in cabbage. Taiwan’s government and citizens must also find solutions to the food shortages and rising prices caused by climate change.
“Climateflation” has become an unavoidable pressure for the public, and it’s not a problem that can be solved by a single ministry. The government must recognize that “solving climate change will help alleviate inflation.” Greenpeace urges the Climate Change Committee established by President Lai to prioritize “climateflation” in its next meeting. Additionally, ministries responsible for “green finance” issues, such as the Ministry of Economic Affairs (MOEA) and the Ministry of Finance (MOF), must present measures to reduce the impact of “climateflation” on the economy and people’s livelihoods.
Greenpeace suggests that relevant ministries develop short and long-term strategies. In the short term, the Ministry of Environment (MOENV) and the Ministry of Agriculture (MOA) should jointly establish a “climateflation compensation fund” to compensate for the economic losses caused by climate change, particularly for vulnerable groups such as the elderly, children, and low-income households, who require government financial assistance to mitigate the impact. In the medium to long term, the MOEA and the MOF should lead the development of a “Net-Zero Investment Act,” providing funds for citizens and companies to install renewable energy systems, thereby expanding public and corporate participation in the energy transition. This would help reduce living expenses, accelerate the development of renewable energy, actively cut carbon emissions, and mitigate climate inflation, achieving a win-win for both the economy and the environment.
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Notes:
[1] Greenpeace analyzed publicly available data over the past decade (2014-2023), comparing the quarterly average transaction price increases with corresponding climate events. Climate events in Taiwan were sourced from the Ministry of Agriculture and news reports, while global climate events were sourced from the Public EMDAT international disaster database and news reports. Vegetable and fruit prices were obtained from the Ministry of Agriculture’s publicly available wholesale market price website. Seafood prices came from the Fisheries Agency’s wholesale market transaction platform, while pork and duck egg prices were sourced from the National Animal Industry Foundation’s livestock price inquiry system, and feed corn prices were obtained from the International Monetary Fund’s Primary Commodity Price System database.
[2] Corn prices over the past decade (2014-2023) increased by approximately 42%, rising from NT$19/kg to NT$27/kg. Bell peppers saw a price increase of around 87%, from NT$30/kg to NT$56/kg. Water bamboo increased by approximately 31%, from NT$65/kg to NT$85/kg. scallions prices rose by about 51%, from NT$39/kg to NT$59/kg. Clams saw an increase of approximately 55%, from NT$58/kg to NT$90/kg.
[3] Duck egg prices over the past decade (2014-2023) increased by around 46%, from NT$71/kg to NT$104/kg. Pork prices rose by approximately 27%, from NT$222/kg to NT$282/kg.