Drought and water scarcity drive up global wheat and potato prices

Extreme summer drought and water scarcity are driving up the prices of essential agricultural commodities. In North Rhine-Westphalia, Germany, officials expect potato prices to rise due to smaller yields, reduced cultivation areas, and the costs associated with artificial irrigation. While grain harvests in the region remained solid, crops such as corn, potatoes, and sugar beets are expected to face significant impacts from the dry weather.

On a global scale, research from the University of Mainz indicates a strong correlation between water scarcity and wheat prices. A study published in ‘Earth’s Future’ found that water shortages during the four months preceding a harvest can explain 74 percent of annual fluctuations in global wheat prices. As global warming continues, water scarcity is projected to expand in key wheat-growing regions, potentially increasing the cost of this primary global staple.