European heatwave pushes up corn prices

Harvest in southern Europe is likely to be meagre this year after an extreme heatwave seriously damaged crops throughout the region.

by Michael Northcott
Last Updated: 19 Aug 2013

You may not think it, but that southern Mediterranean region actually accounts for almost 20% of the world’s agricultural production, meaning global food prices are likely to be affect by the bad harvest. The heatwave, which has hit corn hardest, has already pushed the price of the crop up by 54% since June this year, now trading at an all-time high of $8 per bushel.

Whilst human consumption of corn is not high enough to worry about, the main concern comes from the fact that it is used as an animal feed the world over, meaning the cost of several different types of meat will be pushed up as farmers struggle to get hold of enough to feed their livestock. 

The situation is worsened by the weather in the US, where farmers have been suffering the worst period of drought seen since the 1950s. In addition, Australia has seen below average rainfall, and Indian farmers have been reluctant to press on with corn because the monsoon season is late this year. 

As if we needed anything extra to pile on top of our economic woes…


Find this article useful?

Get more great articles like this in your inbox every lunchtime

A leadership thought: Treat your colleagues like customers

One minute briefing: Create a platform where others can see their success, says AVEVA CEO...

The ignominious death of Gordon Gekko

Profit at all costs is a defunct philosophy, and purpose a corporate superpower, argues this...

Gender bias is kept alive by those who think it is dead

Research: Greater representation of women does not automatically lead to equal treatment.

What I learned leading a Syrian bank through a civil war

Louai Al Roumani was CFO of Syria's largest private retail bank when the conflict broke...

Martin Sorrell: “There’s something about the unfairness of it that drives me”

EXCLUSIVE: The agency juggernaut on bouncing back, what he would do with WPP and why...

The 10 values that will matter most after COVID-19

According to a survey of Management Today readers.