War in Ukraine continues to weigh on European growers

The negative consequences of the Russian invasion of Ukraine and the resulting high production and cultivation costs and food inflation continue to weigh on the horticultural sector and consumers' purchasing decisions. In addition, large parts of the EU have experienced winter drought after last year's hot and dry summer, further worsening water availability in regions where water resources were already at record lows. This could lead affected horticulturists to abandon water-intensive crops. The EU's current macroeconomic forecasts are relatively more positive than in autumn 2022, despite uncertainty about energy supplies for the coming winter and recent tensions in financial markets. High commodity prices helped to offset high production and cultivation costs last year and horticultural income has increased on average, with significant sectoral and regional differences. The latest estimates report suggests that a fall in energy inflation could provide some relief in growing ...