Serious news has arrived about European grain: there is a problem, not a small one

Pierre Bascou, an official of the European Commission, has expressed concern over the significant decline in the European Union's grain production, which is projected to be 9 percent below the historical average at 255.6 million tons. This reduction in production is attributed to adverse weather conditions, including droughts in Southeast Europe and excessive autumn rains, which have affected both the quantity and quality of the harvest, particularly in major producing countries like France. The harvest forecasts show a decrease in corn production by 12 percent and common wheat by 11 percent compared to the averages. The quality issues have led to a reclassification of grain from food to feed or biomass, contributing to a decrease in farmers' incomes. Despite these challenges, global competitors have managed to produce bountiful harvests, keeping prices low, and the issue is further complicated by cheaper grain imports from Ukraine. Additionally, the overall input costs for production in countries like France and Ireland have significantly increased since 2020.