Heat and War Deal Europe’s Grain Harvest Biggest Blow in Decades

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessHeat and War Deal Europe's Grain Harvest Biggest Blow in DecadesEurope is set to suffer one of its sharpest ever declines in grain production as extreme weather and geopolitical tensions converge to pile pressure on farmers.Author of the article:Eleanor Thornber, Sabrina Nelson Garcinuño and Pyotr Kozlov You can save this article by registering for free here. Or sign-in if you have an account.88kxfo3b7gy4kxd}947eaqai_media_dl_1.png Euronext(Bloomberg) — Europe is set to suffer one of its sharpest ever declines in grain production as extreme weather and geopolitical tensions converge to pile pressure on farmers.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSearing temperatures have hit wheat yields and are expected to cut the region’s corn crop to the smallest in 19 years, while sunflower fields and livestock production have also suffered. At the same time, the Middle East conflict has pushed up fuel and fertilizer costs, slashing plantings across the continent earlier this year.As a result, the European Union’s total grains output may shrink by more than 9% this year, according to lobby group Coceral. That would be the steepest annual drop in more than two decades, based on the European Union historical data. The June heat wave alone is likely to cost European grain farmers some €2 billion ($2.3 billion) in lost revenue, according to UK think tank, the Energy and Climate Intelligence Unit.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe woes of European farmers are set to reverberate through global grain markets, just as supplies tighten in the US and Australia, and escalating tensions in the Black Sea strain exports from Russia and Ukraine. Renewed hostilities in the Persian Gulf could keep farm input costs higher for longer, while a developing El Niño threatens intensify crop stress into 2027. “It all adds up,” said José Serrano, a 72-year-old grain farmer from Almería, southern Spain. “This year has been particularly tough for the agricultural sector. People and politicians forget that you need wheat to make bread, and you need livestock to produce milk.”EU wheat exports have got off to a slow start since the season started in July, with shipments down 46% in the first 19 days of the month, according to official data. Wheat traded in Paris has surged about 20% this month, while corn gained 10%.The EU needs corn for animal feed that sustains its huge livestock sector. While tighter supplies could result in some switching from corn to wheat and barley, smaller harvests are poised to boost import demand. The US Department of Agriculture expects the highest EU imports in four years after cutting its production forecasts this month.“There’ll be pressure on the trade balance,” said Charles Hart, senior commodity analyst at Rabobank. “There’ll be more imports and fewer exports.”That opens up opportunities for exporters like Brazil, which is set for a record corn harvest. Ukraine is also a major source of corn for Europe, though Russian attacks on its infrastructure are threatening exports.The Coceral estimates for EU harvests were released July 10. The European Commission, which gathers data from its 27 member states, is due to release its own forecasts by the end of the month. (Sign up for Business of Food, a weekly newsletter that looks at how the world feeds itself in a changing economy and climate.)Here are this year’s harvest highlights in key-producing regions:This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Europe’s top agricultural producer has been at the epicenter of three heat waves since late May. That’s wrought havoc on France’s corn crop, dragging down production estimates for the continent. Output is set to drop to the lowest level since 1990 after the heat hurt flowering at a key development stage, according to researcher Expana. The French agriculture ministry estimates corn losses at as much as a third of the crop. The most recent satellite-derived vegetation health index — a gauge of crop health — remained the lowest on record for this time of year in data going back to 1987, the USDA said Tuesday.On the flip side, wheat quality looks great even as the crop will be about 8% smaller than last year, Argus said earlier this week. Higher protein content is set to raise the appeal to importing countries, it said.Germany & Poland: Less Wheat Scorching temperatures have hit the wheat crop in Germany, the bloc’s No. 2 grower, ripening the grain too early and resulting in smaller kernel and yield size. As a consequence, its winter wheat output is seen dropping 12% this year, farm group DRV said last week.Similarly, wheat yields in Poland, Europe’s third-largest grain grower, are poised to drop by as much as a fifth from last year’s record levels, though they will still be in line with the long-term average, according to Infograin, a Warsaw-based market researcher. Harvests in the south of the country point to high protein levels, it added.Black Sea: Bucking the TrendIt’s looking different on the Black Sea flanks of the EU. Romania, Europe’s fourth-largest grain producer, is poised to have the “best year in history” for wheat, barley and rapeseed after rains in the past three months helped keep soils moist, said Cezar Gheorghe at grains consultant Agricolumn. Bulgaria’s wheat harvest may be a record, according to brokerage Agricore.Still, the wheat quality is not as good, with a large share of the grain having less protein, meaning a greater proportion of the crop will go into feeding livestock. Wheat protein levels are seen generally lower because many farmers cut nitrogen fertilizer use, according to the Forum of Professional Farmers and Processors, which represents growers.—With assistance from Abigail Tobias, Agnieszka de Sousa, Nayla Razzouk and Megan Durisin.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.