European drought drives up food and energy costs

Extreme heat and drought during the summer of 2026 have significantly impacted European agriculture, leading to rising food and energy costs. In Switzerland, the Swiss Farmers' Union (SBV) expects total sector losses to reach approximately 500 million francs. Potato production is down by 20% compared to the six-year average, and milk prices are expected to rise due to shortages in livestock fodder.

Beyond food, the drought has affected energy logistics. Low water levels in the Rhine have restricted fuel transport capacity, contributing to higher gasoline prices and a 30% increase in heating oil costs compared to the previous year.

The climate crisis is affecting much of the continent, with England facing widespread drought, corn production in France projected to drop by 35%, and 60% of agricultural land in Italy impacted by dry conditions. In response to these intensifying patterns, experts are highlighting regenerative agriculture—a method focused on soil health, biodiversity, and water cycle management—as a vital strategy for helping farms adapt to future climate volatility.