
Droughts, climate change and political instability are driving up food prices in Europe and around the world.
Global climate change, drought and political instability are causing yields of key products such as cocoa, potatoes, leafy vegetables, wheat and olive oil to decline, leading to higher food prices for consumers.
AI-generated summary
Extreme weather events such as droughts and heatwaves are negatively impacting agricultural productivity in Europe and Africa. The El Niño phenomenon additionally destabilizes global markets for agricultural raw materials.
Farmers around the world have to face increasingly difficult growing conditions. Droughts, heavy rainfall, abnormal temperatures and unpredictable climate changes are increasingly leading to lower crop yields. Additionally, wars and political crises translate into higher prices of fuels, fertilizers and other necessary raw materials. All this not only results in higher prices in stores, but may also affect the quality and composition of the products that reach our tables. To reduce costs, producers are increasingly turning to cheaper ingredient substitutes, which may affect the nutritional value and taste of food.
Chocolate has been one of the world's favorite food products for years. Its production is mainly based on the work of small farmers in West Africa. Growing cocoa trees is demanding and very sensitive to climate change. Recent years have brought both long-term droughts and sudden rainfall, which limit the activity of pollinating insects and favor the development of fungal diseases. The El Niño phenomenon, which will persist for several more seasons, further intensifies these problems, leading to the destabilization of cocoa production.
As a result, cocoa prices skyrocketed in 2024, which translated into significant increases in chocolate prices in stores. Although prices have now dropped slightly, they remain high and the forecasts for the coming months are not optimistic. Additionally, producers are increasingly replacing expensive cocoa butter with cheaper vegetable fats, which may affect the taste and quality of chocolate.
Potatoes have always been a staple of the diet in many European countries. However, their cultivation requires large amounts of water, and this summer brought exceptionally severe droughts. It is estimated that the potato harvest in Europe may be lower by up to 3.5 million tons, which means a serious loss on the market. With constant demand for this basic product, limited supply leads to higher prices.
Higher potato prices may impact household budgets, especially among people who value them for their affordability and nutritional value. Faced with price increases, consumers may be forced to look for alternatives such as oats, beans and lentils.
Spinach, lettuce and other green leafy vegetables are extremely sensitive to temperature changes and water shortage. Their shallow root system makes them susceptible to soil drying out quickly, and the high water content in the leaves makes them difficult to tolerate heat and drought. This year, the crops of these vegetables suffered due to sharp increases in temperatures and lack of rainfall.
To ensure the availability of these products on the market, retail chains are increasingly reaching for imports from countries with more stable growing conditions, such as Spain. However, farmers there are also facing increasingly difficult weather conditions. All this means that the prices of green leafy vegetables may increase significantly this winter.
Wheat, the basic raw material for bread production, has also suffered from this year's droughts. Yields in many European countries were much lower than in previous years. Although the price of wheat is only part of the cost of a loaf of bread, rising prices of energy, transport and other raw materials make bread baking less and less profitable for bakeries.
The increase in bread prices will be felt by all consumers, because it is an everyday product and a basic source of energy in the diet. Even small increases can impact household budgets, especially among lower-income families.
Olive oil, valued for its health properties, may also become more expensive in the near future. Growing olives in the Mediterranean is becoming increasingly difficult due to increasing droughts, heatwaves and fires that have affected olive groves in Spain, Italy, Greece and Portugal. Most olive trees are watered only by rain, and the lack of rainfall translates into lower yields and higher prices.
Olive oil remains one of the healthiest fats, rich in antioxidants and monounsaturated fatty acids. However, its rising price may force many consumers to look for cheaper alternatives, which may affect their daily diet.

The European Union is taking action to reduce the trade deficit with China. The European Commission plans to restrict imports of Chinese plug-in hybrids and facilitate EU exporters, responding to pressure from France and Germany.

Tanker captains and crews receive many times higher salaries for crossing the Strait of Hormuz, where the risk of a missile or drone attack is 5%. Oil transport costs are reaching $40 million per voyage and ship traffic has fallen to an all-time low.

The Monetary Policy Council maintained the NBP interest rates at the current level, including the reference rate at 3.75%. President Adam Glapiński emphasized the Council's determination to fight inflation, noting that although increases are not excluded, they are not currently planned.

The European Commission proposes a fee of two euros per kilogram of uncollected e-waste as a new source of revenue for the EU budget for 2028-2034. The household appliances industry warns against a hidden tax and price increases, while the European Commission assures that the mechanism is intended to encourage better collection and recycling. Poland has reservations, but does not reject the proposal.

The Monetary Policy Council kept interest rates at the current level. The reference rate remains unchanged, which is a continuation of the stabilization policy in the face of inflation affecting consumer spending.

The President of the Office of Competition and Consumer Protection imposed a fine of over PLN 21.4 million on Nasz Prąd for using 21 prohibited clauses in contracts regarding heat pumps, photovoltaics and thermal modernization. The decision is not final.