Poland agriculture and energy sectors face drought and rising costs

The Polish agricultural and energy sectors are facing significant challenges due to drought and rising costs. Severe water shortages in regions like Opole and Świętokrzyskie have drastically reduced crop yields. Farmers report that spring frosts and lack of rainfall in April and May have caused spring cereal yields to drop by up to 50 percent, while soybean harvests in some areas have been halved.

In the energy sector, pellet prices are rising ahead of the heating season. Prices in Poland have increased by approximately 50 percent compared to 2025, driven by limited raw material availability and reduced imports from Belarus and Ukraine. Interestingly, bulk pellet prices in Germany remain lower than many retail options in Poland, despite rising trends in both markets.

Commodity prices are also fluctuating; rapeseed prices have seen recent increases, reaching up to 2470 PLN per ton for certain delivery terms. Meanwhile, the cattle market remains relatively stable, though supply is limited as farmers prioritize grain harvests.