Drought-Hit Germany Braces for 7% Grain Harvest Decline

Germany's drought-hit harvest is expected to yield 41.9 million tons of grain this year, a 7% drop from last year's production, according to the German Farmers' Association (DBV).

The DBV attributed the decline to an 'overly dry spring and a heat wave in the second half of June,' which damaged many crops.

Rapeseed saw the largest fall, with 3.3 million tons harvested, nearly 17% lower than last year.

Agriculture Minister Alois Rainer said he doesn't expect sudden or sharp price increases in food as a result of the lower harvest, but admitted that domestic supply of oil and sugar could be reduced due to large falls in rapeseed and sugar beet production.