The heatwave sweeping across France, the United Kingdom, the Netherlands, Spain, and Italy threatens to affect future harvests of key export crops.
Denis Ternovsky, a leading researcher at the Center for Agri-Food Policy at the Russian Presidential Academy, spoke to RIA Novosti about the economic consequences of extreme weather in Europe.
According to the expert, the greatest risks are associated with Spain. For instance, the unbearable heat, with temperatures exceeding 40 degrees, could leave the largest producer of olive oil without raw materials: due to the heat and lack of rainfall, the olive harvest may not only shrink significantly but also decline in quality, as high temperatures reduce the oil content in olives. Due to the reduction in Spanish olive supplies, prices for the product will naturally rise.
European winegrowers are also facing a threat. Due to the hot and dry weather, French and Spanish vineyards may suffer reduced yields. At the same time, for Germany, the current heat wave may bring an unexpected benefit by making the grapes sweeter.
Among other things, the cocoa and coffee harvests are also at risk. The El Niño phenomenon will be to blame for the spike in prices for chocolate and coffee.
Analysts are sounding the alarm that the heatwave sweeping across the United Kingdom and Western Europe could undermine economic growth. Heat stress could increase economic costs unless countries promptly amend their labor laws. According to expert forecasts, France could lose $240 billion between 2026 and 2030, Italy $147 billion, and Spain $120 billion.
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