EU Farmers Face Reduced Harvests, Higher Prices Due to Drought, Wildfires

EU farmers are bracing for reduced harvests and higher prices due to extreme heat, drought, and wildfires affecting crops. The olive oil sector is among those hit, with expected price increases.

The EU's sunflower and soyabean production forecasts have been downgraded by 7% and 3%, respectively. In Spain, direct damage from fires has impacted orchards, vineyards, agricultural land, and greenhouses.

Olive oil producers anticipate a surge in prices as growers struggle with heat, drought, and wildfires. Groves in Greece, Italy, and Portugal have burned, with nearby trees affected by ash and poor air quality.

Extreme hot weather has led to increased pests and disease. Although olive oil prices have been declining since a spike two years ago, they're rising again due to reduced harvests.