As winter approaches, production and cost pressure on basic food products

With the approach of winter, production and cost-related pressures in basic food products have come to the fore again. It is stated that drought, water stress and extreme weather events in Europe, as well as the increase in energy, labor and transportation costs, may affect the prices of many products, from bread to potatoes, from olive oil to green leafy vegetables, in the coming period.

YEAR LOSS EXPECTATION IN POTATO PRODUCTION

Extreme heat in the summer months in Europe and England negatively affected potato production. According to foreign agricultural reports, it is estimated that the total potato yield in the region may be approximately 3.5 million tons below expectations.

The loss in production is expected to put pressure on supply during the winter months. If the demand remains high, the possibility of upward movements in potato prices increases, while problems that may occur in imports and the supply chain are expected to be reflected in the prices.

COST PRESSURE IS INCREASING IN BREAD

In bread and bakery products, prices are not determined only by wheat production. Global increases in energy, labor and transportation costs, which are among the basic expenses of bakeries, are pushing up production costs.

While the cost pressure in the sector is expected to be reflected in the shelf prices during the winter months, the developments in the bakery sector are also closely followed.

WEATHER CONDITIONS AFFECT COCOA PRODUCTION

Weather conditions also pose a significant risk in cocoa production. In addition to drought, excessive rainfall can also negatively affect production.

While adverse weather conditions reducing yields are among the factors that may lead to a contraction in cocoa supply, it is considered that this may also put pressure on chocolate prices.

OLIVE OIL EYES ON NEW SEASON PRODUCTION

In olive oil, drought and extreme temperatures in Mediterranean countries stand out. The amount of rainfall in producing countries, especially Spain, is important for the course of new season production.

The effect of weather conditions in the region on the production amount may be one of the factors that determine the direction of olive oil prices in the coming period.

GREEN LEAFY VEGETABLES ARE ALSO AT RISK

Weather conditions directly affect the production of green leafy vegetables such as spinach and lettuce. While high temperature and water shortage reduce productivity, losses caused by pests are also among the problems faced by producers.

As we enter the winter months, production losses and cost increases in different agricultural products are expected to be reflected in market prices through supply conditions.