Expectation of Cost Increases in Basic Food Products Before Winter
With the approach of winter, price increases are expected in basic food products due to drought in Europe and rising costs.
With the approach of winter, price increases are expected in bread, potatoes, olive oil, chocolate, and leafy greens due to drought, extreme weather events, and increases in energy, labor, and transportation expenses in Europe.
Yield Loss in Potato Production
Extreme heatwaves during the summer months in Europe and the UK negatively impacted potato production. It is estimated that the total potato yield in the region could fall approximately 3.5 million tons below expectations.
The production losses are expected to put pressure on supply during the winter months, and problems that may arise in imports and the supply chain are anticipated to be reflected in prices.
Increasing Cost Pressure on Bread
Wheat production alone does not determine the prices of bread and bakery products. Global increases in energy, labor, and transportation costs, which are the main expenses of bakeries, are driving production costs up.
Conditions Threatening Cocoa Production
Adverse weather conditions pose a significant risk to cocoa production. Drought and excessive rainfall are among the factors that can reduce yield and lead to a contraction in cocoa supply.
This situation is evaluated as likely to create pressure on chocolate prices as well.
New Season Expectations in Olive Oil
Drought and extreme temperatures in Mediterranean countries stand out regarding olive oil. The amount of rainfall in producer countries, especially Spain, is crucial for the course of the new season's production.
Risk in Leafy Green Vegetables
Weather conditions directly affect the production of leafy green vegetables such as spinach and lettuce. High temperatures and water shortages reduce yields, while losses caused by pests are among the problems producers face.