Extreme weather and crop failure: Food prices are rising in Europe and Hungary as well

By: Trademagazin Date: 2024. 09. 04. 12:22

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This summer’s extreme weather has seriously affected Europe’s agriculture, causing significant crop losses and rising food prices. While the weather was cool and rainy in Northern and Western Europe, Central and Southeastern Europe was hit by extreme heat and drought. In Hungary, corn, potato and sunflower yields were particularly affected by the drought, causing significant losses to farmers.

Hungarian crop yields and prospects

According to the analysis of the MCC Climate Policy Institute, a large part of the corn and potato harvest in Hungary was lost due to the drought. The domestic supply seems to be assured, but due to the crop failure, imports may be necessary to meet export needs. Both the quantity and quality of sunflower and corn fall short of expectations, which will have a serious impact on the market.

In the case of apples, a serious drop is also expected: according to the first estimates, around 150,000 tons less apples will be harvested this year than last year. The amount of edible apples does not cover domestic needs, and the processing of industrial apples also falls short of what is needed. The price of eating apples shows a 25-35% increase, while the purchase price of juice apples has almost doubled last year’s prices.

European outlook and food inflation

Significant crop losses are to be expected not only in Hungary, but throughout Europe. A 30-50% shortage of apples is expected in Poland, Romania and the Czech Republic, while in Southern Europe the price of olive oil rose to a record high due to the extreme heat. The yield of rice, potatoes and tomatoes also decreased due to drought, floods and heat waves.

The extreme weather has affected nearly half of Europe’s agricultural areas, further exacerbating the increase in food prices. According to the forecast of the European Central Bank (ECB), in the next decade, food inflation may increase by up to 3.2 percentage points per year, which may significantly increase general inflation.