Vegetables, fruit and olive oil: heat and drought are bringing agriculture to its knees. Milk down 10 per cent
Businesses are facing a profitability crisis amid falling harvests and soaring production costs. The wine and livestock sectors are struggling, whilst the water shortage is also affecting honey and mushroom production
Key points
Italian agriculture is facing serious difficulties. The double whammy of challenging weather conditions and rising production costs is putting the sector under severe strain.
From a climatic perspective, the difficulties stem from drought, which is particularly widespread in the northern regions. As for production costs, however, the crisis in the Middle East is taking its toll, having triggered sharp rises in the prices of fuel and fertilisers, most of which pass through the Strait of Hormuz. From cereals to fruit and vegetables, from wine to olive oil and livestock farming, right through to the beekeeping and mushroom sectors, it is currently difficult to find any agri-food supply chain that is immune to these threats.
Cereals: harvests are down
The cereal sector is facing difficulties, starting with durum wheat, the raw material for an iconic ‘Made in Italy’ product such as pasta. The durum wheat harvest ended with a 6 per cent drop compared with last year. However, the main cause for concern is the trend in prices, which have fallen significantly compared with last year, whilst production costs have risen considerably.
Concerns are also being raised regarding rice (the growing season for which begins in September) – a cereal whose entire production cycle takes place in water and in the regions of northern Italia, and which is therefore at risk due to the drought that has affected the northern areas. Compounding the complex situation for the rice sector is the rise in imports from South-East Asia, which are putting downward pressure on prices and penalising producers in Europe’s leading rice-producing country, Italy.
Livestock farming: milk production down 10%
The livestock sector is not without its difficulties, with the dairy sector particularly hard hit, as the prolonged heatwave is taking its toll on livestock housing and ‘is leading – as highlighted yesterday by Fedagri-Confcooperative – to an estimated 10 per cent drop in production. All this is taking place against a backdrop of rising production costs.”


