Europeans’ wallets are slated for a tough year ahead. Not only is inflation soaring due to reckless monetary policies and geopolitical conflict, the heatwave that enveloped much of the region throughout the summer season is expected to reduce corn crops by almost double than previously expected.
According to a report published by the EU’s Monitoring Agricultural Resources unit, this year’s crop yields are expected to fall 16% below the 5-year average, down from a previous July forecast calling for a decline of 7.8%. The grim outlook on corn production will create an even bigger headache for livestock producers, who are already facing surging energy and fertilizer costs.
“Water and heat stress periods partly coincided with the sensitive flowering stage and grain filling,” read the report. “This resulted in irreversibly lost yield potential.” The historic drought has dried up pastures across the EU’s agricultural economies, while local governments have restricted irrigation in order to preserve water supply.
Consumers will also face even more elevated food costs, despite inflation already soaring to 40-year highs. Latest Eurostat data showed prices for milk, cheese, and eggs surging at record-highs, with the price of meat alone jumping by 12% compared to July 2021.
Information for this briefing was found via the MAR. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
