All indications are that there is a full-blast round of the El Niño phenomenon - with its very marked impact on weather patterns - on its way and a wide range of affected parties, from farmers to commodity brokers, governments and even beer brewers, will do well to be prepared for it.

As understanding of the phenomenon has grown over the last 10 to 15 years, it is increasingly clear that El Niño, traditionally associated with either severe droughts or severe flooding, is by far not the only bad news.

How you perceive El Niño and how you should prepare for it depends on where you are - both geographically and in the economic constellation.

The latest newsletter from Standard Bank's Agricultural Department warns that if the El Niño develops as expected, the gross value of agricultural products could decrease by 16%, while gross farming income could dip by 6.3% if the seasonal rainfall drops by 30%.

On the other hand, Investec Asset Management foresees that the predicted weather conditions are likely to raise the price of a range of agricultural commodities.

Johan van den Berg, consultant at insurer Santam Agriculture, was also reported by Farmer's Weekly as saying that local climate conditions will change only slightly, and South African wheat production should benefit. Summer crops, however, could experience a tough season.

He said that normal to slightly later than normal planting dates are usually best under El Niño conditions. Farmers must use the expected good spring rainfall to ensure that enough water is available for later in the summer.

Historically, El Niño has had an effect on Australian and South American grain production, as well as on sugar, rice and wheat output in India and other parts of Asia. According to a report by Engineering News, Investec Asset Management's Dawid Heyl said that palm oil output in Niger and Malaysia was also vulnerable to the changes in rainfall and temperature patterns associated with the phenomenon.

"We expect to see strength in those commodities if El Niño actually materialises between August and October as is being forecast," he said.

Van den Berg is of the opinion that the phenomenon should not affect global food supplies, as bad weather could actually help bring production and demand in line. Prolonged favourable production conditions negatively affect profit levels due to lower prices.

Some of the past negative effects of El Niño events have been severe flooding and mudslides in Central and South America, and drought in Indonesia.

But, again it is not all bad news. In July, Bloomberg reported that shares in Companhia de Bebidas das Américas - the largest beer brewer in Latin America - gained significantly after Deutsche Bank AG said that hotter weather caused by the El Niño weather pattern would lead people to guzzle more beer and soda.

Brazil's temperatures will increase as a result of El Niño, leading to drier than normal conditions in the northeast and wetter weather in the south, the bank reported.

"Drier and warmer conditions are favourable for beverage consumption. Bebidas das Américas beer sales climbed 11% during the last strong El Niño event in 1997," said a bank spokesperson.