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World Food Prices Hit Highest Level Since 2022 Amid Rising Supply Risks

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Global food prices climbed to their highest level since late 2022 in August, driven by extreme weather, geopolitical tensions and growing concerns over agricultural supplies, according to the United Nations Food and Agriculture Organization (FAO). The FAO Food Price Index averaged 133.3 points, up from a revised 130.8 in July, marking the highest reading since November 2022.

All major food categories tracked by the index—including cereals, vegetable oils, sugar, meat and dairy—recorded increases. Extreme heat and drought in Europe have threatened maize, sugar beet and livestock production, while expectations of a strong El Niño have raised concerns over palm oil and sugar supplies in Asia. Rising tensions and disruptions in the Black Sea have also affected grain shipments from Russia and Ukraine.

The FAO also lowered its forecast for global cereal production in 2026 by 3.4 million metric tons to 2.980 billion tons, which would represent a 2% decline from 2025. Global cereal stocks for the 2026/27 season were also revised down to 947.2 million tons. Despite the reductions, projected production is still expected to be the second-highest on record, highlighting the growing pressure from climate and geopolitical risks on global food markets.

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France Announces €1 Billion Aid Package for Heat-Hit Farmers

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France has announced more than €1 billion in financial support for farmers affected by record heatwaves and droughts this summer. Agriculture Minister Annie Genevard said the package is a major effort given the country’s tight budget situation, with €520 million to be distributed through rapid payments to help cover weather-related losses.

France’s main farmers’ union, FNSEA, estimates farmers have already suffered at least €10 billion in lost production, with both livestock and crop sectors reporting losses of more than €5 billion each. Around 30,000 to 35,000 farms are facing financial difficulties, prompting the government to prioritise immediate assistance.

The package also includes a €235 million recovery fund to help farmers purchase seeds, crops and animal feed after drought damaged farmland and water supplies. Additional measures include land-tax relief, social-security payment support and fuel subsidies. The finance ministry estimates the extreme weather could reduce France’s economic growth by 0.1 percentage points this year, while another heatwave is expected this week.

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Climate Shocks Hit EU Maize Production in Hungary and Romania

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Climate change is putting increasing pressure on maize production across central and eastern Europe, with repeated droughts, heatwaves and water shortages reducing crop yields. The impact is particularly severe in Hungary and Romania, where maize acreage has fallen sharply. Hungary, once a major exporter, is expected to import maize this year, while Romania’s exportable surplus has declined.

The European Union’s maize harvest is forecast at 50.1 million metric tons in 2026, nearly a two-decade low and around 20% below the average of the past three years. Romania’s crop is expected to reach about 8 million tons, while Hungary’s harvest could fall to just 2.5 million tons. EU maize imports are projected to rise by 8% to 9% in 2026/27 as domestic production weakens.

Farmers are increasingly changing how they operate to cope with the changing climate. Some are switching from maize to crops such as sunflowers that require less water, while others are investing in irrigation. However, declining water availability is making even irrigation difficult. Farmers warn that without reliable water supplies, continued maize cultivation could become increasingly unviable, raising concerns for Europe’s food security and agricultural livelihoods.

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Serbia Rethinks Forests as Wildfires Intensify in a Warmer Climate

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Serbia’s Deliblatska Pescara reserve is facing difficult choices after a major wildfire damaged large areas of its unique dunes and woodlands. Foresters are now working on a long-term restoration plan, while considering how to make the landscape more resilient as hotter and drier conditions increase the risk of future fires.

Experts say the recovery could take decades. Damaged trees must be gradually removed to prevent them from fuelling new fires or attracting bark beetles, while foresters consider replacing highly flammable conifers with species such as birch, poplar, ash and oak. Some experts have advised waiting three to five years in areas without immediate erosion risks before undertaking large-scale replanting.

The challenge reflects a broader shift in Serbia’s fire patterns. Data from the European Forest Fire Information System shows that 2023–2025 was the country’s worst three-year period for fires this century. Forestry experts are increasingly looking toward methods used in traditionally drier regions, including techniques to retain soil moisture and improve the survival of newly planted trees.

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France Links Sharp Rise in Drownings to Heatwaves

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France has recorded 301 drowning deaths since 19 June, a 14% increase from the same period last year, according to Sports and Youth Minister Marina Ferrari. She linked the rise to prolonged heatwaves that have pushed people toward rivers, canals and other bodies of water to cool down.

Ferrari warned that many fatal incidents occurred in areas without authorised or supervised swimming facilities. She also said some drownings, particularly among older people, happened in private pools. Sudden immersion in cold water after extreme heat can cause shock, while swimmers may also overestimate their physical abilities.

The increase comes as France and other parts of Europe experience increasingly intense heatwaves, wildfires and extreme temperatures. France has also recorded about 7,300 excess deaths between late May and 22 July, according to provisional public health figures, highlighting the wider health impact of the extreme summer heat.

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Giant Whales Move Into Greenland Waters as Sea Ice Disappears

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Giant whales are increasingly moving into previously inaccessible waters along Greenland’s east coast as rising temperatures cause sea ice to disappear. A decades-long study found that fin, humpback and minke whales are now feeding in ice-free coastal waters during summer, marking a major shift in the region’s marine ecosystem.

Researchers recorded a sharp rise in whale activity, with aerial surveys, satellite tracking and observations from Inuit hunters providing evidence of the change. An estimated 4,000 humpback whales, 6,000 fin whales and 6,000 minke whales visited the Greenland Sea in summer 2024. Scientists believe warmer waters and increased food availability are attracting the whales to the area.

While some whale species appear to be benefiting from the changing conditions, Arctic species such as narwhals and belugas could face growing pressure as their traditional habitat changes. Scientists say the movement represents a major ecological shift, highlighting how climate change is creating new opportunities for some marine species while threatening others.

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Rainfall Helps Fight Belgium’s Biggest Wildfire as Blazes Sweep Europe

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Rainfall brought relief to firefighters battling Belgium’s largest wildfire on record in the High Fens nature reserve. The fire, which has burned around 3,000 hectares, was partly contained on Monday and was no longer spreading towards the German border as cooler temperatures and increased humidity helped slow its advance.

The wildfire is part of a severe fire season across Europe, where successive heatwaves have created hot, dry conditions. Around 576,000 hectares of land have already been burned across Europe this year, while major fires have also affected Greece, Spain and Croatia. In Greece, an elderly couple died as fires swept through the island of Salamina, while a blaze in northeastern Spain destroyed 16,600 hectares.

Around 500 firefighters from Belgium, Germany and Luxembourg, supported by farmers and the army, have been working to contain the Belgian blaze. The European Union has also deployed three helicopters and two water-bombing aircraft after Belgium requested emergency assistance. Officials warned that the European wildfire season remains far from over, with high fire risks continuing across large parts of the continent.

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Europe’s Heatwaves Expose Insurance Gap as Business Losses Mount

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Europe’s increasingly frequent heatwaves are causing major financial losses for businesses, while traditional business interruption insurance often fails to cover the disruption. In Italy’s Padua, hospitality businesses have seen customers avoid outdoor dining during peak heat, with more than 80% of surveyed businesses reporting turnover declines of around 20%.

The economic impact is significant. Moody’s estimates that last summer’s European heatwaves caused around €43 billion in lost economic output, compared with only about €500 million in insured payouts. Extreme heat is also affecting worker productivity, transport, agriculture and industrial operations, while increasing cooling and operating costs.

Insurers are exploring parametric insurance as one possible solution, with payouts triggered automatically when temperatures cross predefined thresholds. However, experts say businesses will also need to adapt by investing in cooling systems, redesigning workplaces and strengthening supply chains to reduce losses from increasingly frequent extreme heat.

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Europe’s Hot Summer Hits Austrian Farms, Drives Cattle to Early Slaughter

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Austria’s agriculture sector is struggling under an unusually hot and dry European summer, with prolonged heat and a lack of rainfall damaging crops and leaving cattle farmers short of water and grass. Farmers in northern Austria say the sustained temperatures are unprecedented, forcing some cattle to be brought down from Alpine pastures earlier than usual.

The shortage of pasture is also raising costs for farmers, who may have to rely on stored hay or purchase additional feed meant for winter. Some farmers are responding by sending cattle to slaughter earlier than planned, while waiting lists at slaughterhouses are already growing. Conditions vary across different Alpine areas, with some pastures having already been cleared of cattle.

Crops have also suffered heavily, with Austria’s national food production body forecasting a 19% decline in the grain harvest this year. Corn has been particularly affected by the lack of water, while heat has damaged tomato crops in greenhouses around Linz. Farmers report that many tomatoes have stopped developing or developed dry, discoloured patches, although some crops, including carrots, have benefited from the unusually warm conditions.

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Rhine Water Levels Hit Record Lows, Disrupting Cargo Shipping

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The Rhine River in Germany has fallen to record-low levels amid a prolonged heatwave and scarce rainfall, disrupting one of Europe’s most important commercial waterways. At the Kaub chokepoint near Koblenz, navigable water depth dropped to just 15 cm on Tuesday, below the previous record low of 25 cm recorded in 2018.

The extremely shallow conditions have forced many cargo operators to halt sailings on southern sections of the river. Vessels that continue operating can carry only around 20% of their normal loads, forcing freight to be spread across multiple ships and significantly increasing transportation costs. Some cargo is also being shifted to road transport.

The disruption could have wider consequences for Germany’s economy, as the Rhine carries major volumes of grains, minerals, coal and refined oil products. Analysts warn that prolonged record-low water levels could weigh on economic growth just as Germany’s economy is showing early signs of recovery. Northern sections of the river remain navigable, but continued dry weather could worsen the situation.

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