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European heat, drought and wildfires threaten higher olive oil prices
Producers expect grape yields to be about 10% smaller than last year and an earlier Champagne harvest, with regional drought disrupting multiple crop types beyond olives.
European farmers are warning that extreme heat, drought, and wildfires across the continent are cutting crop production and pushing up food costs, with olive oil seen as the next price to rise again. According to the Guardian Business, the climate-driven weather impacts are broad, including damage to olive groves and losses across other crops such as salad leaves, carrots, leeks, garlic, and onion. The vegetable growers association Légumes de France said thousands of tonnes worth tens of millions of euros were lost and that production on some crops could be halved due to lack of rain. The same conditions are also affecting vineyards. In France’s Champagne region, producers expect picking to start around 15 August, about a month earlier than typical decades ago, Reuters reported, while grape yields are expected to be about 10% smaller than last year.
The article also cites knock-on effects for other staples, including predictions that Spain’s 2026 to 2027 cereal crop will fall from 24 million tonnes to a little more than 18.5 million tonnes, and that the European Union has lowered harvest expectations for crops including sunflowers and grain maize.