Key facts
- Extreme heat, drought, and wildfires are causing widespread crop damage across Europe.
- Olive oil prices are expected to rise again due to reduced production.
- Vegetable growers report significant losses, with some crop yields potentially halved.
- European Union harvest predictions have been lowered for various crops, including sunflowers and maize.
- While some countries like Turkey and Italy have seen positive crop outcomes, many others are struggling.
European farmers are facing a severe slump in food production and anticipating price hikes as extreme heat, drought, and wildfires devastate crops across the continent. Olive groves have been particularly affected by record-high temperatures, leading to expectations of further price increases for olive oil, which is already at elevated levels.
Growers associations have warned of millions of euros in losses, with some crop yields, such as salad leaves, carrots, and onions, expected to be halved due to lack of rain. The scorching weather is also impacting grape growth in key wine regions like Champagne, Bordeaux, and Burgundy, threatening smaller yields and an earlier harvest. Spain's cereal crop is also predicted to fall significantly, despite farmers' adaptations to dry conditions.
The European Union has revised down harvest predictions for a range of crops, including sunflowers, grain maize, potatoes, and soya beans. While some countries like Romania and Italy have experienced more favorable conditions for certain crops, others have suffered direct damage from fires affecting orchards, vineyards, and agricultural land, as well as water stress and extreme temperatures impacting production.
Olive oil producers anticipate another surge in prices as groves in Greece, Italy, and Portugal have been impacted by fires, ash, and poor air quality. The extreme weather has also exacerbated pest and disease issues. While global olive oil prices had previously fallen from a spike, they have begun to rise again, with a one-litre bottle of extra virgin oil averaging over £7 in UK stores.
Producers are closely monitoring drought-induced fruit loss and earlier harvests, which could significantly influence production volumes and market prices for the upcoming year. The UK harvest has also been affected by drought, leading to reliance on imports for staples like lettuce and broccoli. Conversely, Turkey is noted as a positive exception with record crop yields, and Italy is expected to see an increase in wheat output.