UK statutory levy board steering plant, crop and animal sectors
The UK faces renewed food-security concerns as heatwaves and drought push down cereal and oilseed harvests. Experts warn of higher prices and greater reliance on imports, with farmers cutting yields and livestock costs rising. Officials say the situation is likely to worsen into the autumn and into next year.
The government has announced new measures to help farmers manage drought, including a £65m fund for on-farm reservoirs and a raised Sustainable Farming Incentive budget. The move aims to ease water shortages, support livestock feeding, and back environmental work as hot, dry conditions persist.
The Independent and The Guardian report stronger berry yields this season, aided by hot weather and advanced irrigation. BBG warns some crops face late-season slowdowns; dairy and cereals show pressure from drought. The industry emphasizes water security and investment in reservoirs and drip irrigation.
The latest inflation reports have kept pressure on American households, with both wholesale (PPI) and consumer (CPI) indices showing prices staying above 3%. The Federal Reserve faces ongoing debates over possible rate moves as energy costs and supply-chain dynamics feed through, while investors digest a strong jobs backdrop.
Global wheat supplies are tightening as drought across the US and Europe reduces harvests. High prices for bread wheat persist, driven by record fuel costs, extreme weather, and disruptions from Black Sea tensions. Analysts warn prices could rise further if shipping routes remain limited.