Europe's Drought Worsens Grain Shortage as Fertiliser Crisis Deepens

The ongoing drought in Europe is causing a severe crisis in grain production, leading to a potential food shortage on the continent.

The Ukraine-Russia war has exacerbated this issue, with wheat prices increasing by 30% this year. The heatwave and lack of rainfall are expected to reduce British crop yields further, while the low water levels of the Danube River have made it more expensive to transport grain from central and eastern Europe.

The conflict in the Persian Gulf has also restricted exports of natural gas used to produce fertiliser, resulting in a shortage of 35% of the world's fertiliser supply. A million tonnes of fertiliser have been stranded in the Gulf since February due to this issue.

The UK Government is introducing a carbon tax on fertilisers as part of its CBAM (carbon border adjustment mechanism), which will take effect in January. This levy risks pushing farmers over the edge, with many threatening to leave their fields fallow rather than produce crops at a loss.

Farmers are warning that the UK relies heavily on imported fertiliser and ammonia, and the closure of key production facilities has left them vulnerable to price increases. The Prime Minister has announced a £65m drought package for agriculture, but farmers need more practical measures to help them through this crisis.