WATER CONSUMPTION AND CROP PRICES: AN EXPLANATORY GLOBAL DATA-DRIVEN STUDY

We analyze the farm-gate prices of twelve representative crops in 1991-2016, considering data from 162 countries. The association between crop price and unit water footprint is investigated, also accounting for the country’s water scarcity and of the land footprint as possible confounding factors. We find that prices of staple crops (e.g. wheat, maize, soybeans, and potatoes) seem to embed the amount of water used for their production. Differently, food products whose production is more export-oriented (e.g. coffee, cocoa beans, tea, vanilla) exhibit weaker or negligible water price links. These variations may be ascribable to specific market dynamics related to the two product groups.