Chili Pepper Problems
Hot sauce lovers are worried.
They might not be able to buy Sriracha Hot Chili Sauce, Chili Garlic, and Sambal Oelek chili paste. In addition, the restaurants and supermarkets that depend on Sriracha as a spicy ingredient could be looking for a substitute.
Do take a 2 1/4 minute look at how Sriracha is made:
Sriracha recently announced an unprecedented chili shortage. Down from Covid, now the situation is worse because severe weather conditions diminished the quality of the spring chili crop. As a result, the company was accepting no new orders before September and delaying some deliveries until the fall.
Places where Sriracha sources peppers like California and New Mexico were especially dry:
Our Bottom Line: The Fallacy of Composition
Describing Sriracha hoarders, economists cite the fallacy of composition.
The fallacy of composition tells us that what is good for one person can be bad for everyone. The typical example is a fire in a crowded theater. Although one person can race for the exit, many people cannot. Hoarders are somewhat similar. Whether it’s toilet paper, hand sanitizer, or Sriracha, when one person empties the supermarket shelf, there is none left for the rest of us.
Surely creating copycats, this shopper is contributing to the shortage:
My sources and more: Thanks to Bloomberg radio for alerting me to Sriracha shortages. Then, ideal complements, the Guardian, CNN Business, and the Drought Monitor had more of the shortage details while this article tells the wonderful story of Srirachas’s immigrant founder. Instead though, you might just enjoy reading about Sriracha’s odor problem.
Originally published at https://econlife.com on June 10, 2022.