European Heatwave Fuels Olive-Oil Price Surge Amid Widespread Crop Losses

Extreme heat, drought and wildfires are hitting a broad swath of European agriculture, from maize and salads to vineyards and olive groves. The Guardian reports that farmers across the continent warn of a slump in food production and rising prices as crops suffer. Olive-oil producers anticipate another price increase after a previous spike two years ago, with a one-litre bottle of extra-virgin oil in UK stores still averaging above £7 and climbing in recent months.

The Guardian

The vegetable growers association Légumes de France says thousands of tonnes of salad leaves, carrots, leeks, garlic and onion—worth tens of millions of euros—have been lost, with some crops expected to see production halved because of insufficient rain. The agricultural trade body ASAJA adds that fire damage has affected orchards, vineyards, greenhouses and olive groves, while water stress has reduced tomato and maize yields. In France, scorching weather has delayed grape growth in Champagne, Bordeaux and Burgundy; producers expect the earliest harvest ever, with picking likely to start around August 15, about a month earlier than typical decades ago.

The Guardian

The European Union has cut harvest forecasts for several crops: sunflowers down 7 %, grain maize down 6 % from the previous forecast, and potatoes and soybeans trimmed by 3 %. Spain’s Ministry of Agriculture predicts the 2026-27 cereal crop will fall from 24 million tonnes to just over 18.5 million tonnes, a forecast made before wildfires took their toll. By contrast, Romania received more rainfall and Italy’s wheat output is projected to rise 10 % thanks to improved yields. Grain-market consultant Cezar Gheorghe of Agricolumn estimates the current maize harvest at 8.2 million tonnes, above the 7.75 million-tonne official estimate for 2025.

The Guardian

Walter Zanre, head of the UK arm of olive-oil brand Filippo Berio, notes that while temperatures in Spain—Europe’s main olive-oil producer—are closer to normal, drought is forcing trees to shed fruit, threatening volumes for next year. An ASAJA spokesperson emphasizes that the main concern is higher production costs rather than export restrictions. The European Commission’s forecasts reflect these pressures, anticipating tighter supplies and higher consumer prices across the region.

The Guardian

Higher production costs and reduced yields are expected to keep olive-oil prices elevated, affecting both European consumers and global markets. Wholesalers in the UK are already turning to Spain and other sources for staples such as iceberg lettuce and broccoli, underscoring the ripple effect of climate-driven agricultural stress on food security and pricing.

The Guardian