EU Grain Production Set for Biggest Decline in Over a Decade Amid Heatwaves

The European Union's agricultural sector is facing one of its steepest declines in grain production in over a decade. A severe heatwave, exacerbated by geopolitical tensions and rising fuel prices, has dealt a significant blow to farmers.

According to Coceral, the total grain production volume in the EU could decrease by more than 9% this year, equivalent to approximately 23.4 million tons. The June heatwave alone is estimated to have cost European farmers around €2 billion ($2.3 billion) in lost revenue.

The market reaction has been swift, with wheat prices on the Paris exchange rising by about 20% this month and corn becoming 10% more expensive.

France, the largest EU agricultural producer, was particularly hard hit, with three consecutive heatwaves since the end of May affecting its crops. The country's corn harvest is expected to drop to its lowest level since 1990, while wheat yields may decrease by approximately 8% despite high quality and protein content.