Delays and Disease Impact Crop Yield
Prolonged rains are significantly affecting the wheat harvest in France, delaying the process and promoting the development of diseases. The French Association of Wheat and Grain Producers (AGPB) estimates that this year, farmers will harvest only 26 million tons of wheat, which is 10 million tons below the average annual figure of 36 million tons.
High Global Supply Pressures Prices
In light of the poor harvest, French farmers are hoping for high prices for their grain. However, the global market situation is not favorable. The USA, Ukraine, Kazakhstan, and Russia are all expected to harvest high yields, putting pressure on global wheat prices.
Market Reactions
From July 22 to July 29, September wheat futures on Matif fell by €9.75 per ton, and on July 30, they dropped by another €0.75 to €215.25 per ton. Additionally, the price of wheat in the Black Sea ports remains low, making it unlikely that there will be demand for the more expensive European grain.
Significant Financial Losses
AGPB estimates that French farmers’ losses this year could exceed 1.6 billion euros. This dire situation necessitates immediate help and long-term support from the government.
Government Response
In response to the crisis, French Minister of Agriculture Marc Fesneau visited the Aire-et-Loire region at the invitation of AGPB to assess the damage caused by the rains and understand the challenges faced by farmers.
Similar Issues in Germany
Germany is experiencing a similar situation. According to estimates by the International Grain Council (IGC), the grain harvest in Germany will be 6% less than last year, further highlighting the widespread impact of adverse weather conditions on European agriculture.
The prolonged rains in France have severely impacted wheat production, causing significant delays and fostering disease. With global market pressures and high yields expected from other major producers, French farmers are facing a challenging economic environment. The substantial financial losses underline the urgent need for government intervention and long-term support to help farmers navigate these difficult times. As Europe contends with these agricultural challenges, it is crucial to develop strategies that mitigate the impact of adverse weather conditions on future harvests.