Drought losses could drive up bread prices in Upper Austria

Crop failures caused by heat and drought could push up the price of bread and baked goods in Upper Austria, ORF reports. Farmers expect significant losses in grain production, with some regions facing total failures of crops including maize, soybeans and sugar beet.

“The topsoil is completely dry,” said organic farmer Josef Eder from Sarleinsbach in the Rohrbach district. Soil organisms have retreated deeper underground, he said, noting that worms are now found at significantly greater depths.

More than 100 tonnes of lost yield have been recorded in the spelt harvest in the Mühlviertel region. Losses of more than 60 percent are also expected for maize, soybeans and sugar beet across Upper Austria. In some regions, the Upper Austrian Chamber of Agriculture is reporting complete crop failures.

Upper Austria has recorded its driest first half of a year since weather records began. Across Austria, it was the second-driest first half on record.

The reduced grain supply is putting increasing pressure on arable farming, while farmers must continue to fulfil delivery contracts. Juliane Eder of an organic farm bakery in Sarleinsbach said the bakery plans its grain requirements carefully and secures supplies in the autumn.

Lower grain volumes are likely to affect bread and baked-goods prices, although the extent of any increase remains unclear. Inflation, higher wages, energy costs and more expensive operating inputs will also play a role, Juliane Eder said.

Almost one in four arable farmers in Upper Austria is already considering giving up farming, according to Thomas Wallner, a soil adviser with the Upper Austrian Chamber of Agriculture. The combination of severe rainfall shortages, lower product prices and rising costs for fertiliser, seed and diesel has created an “enormous” deficit, he said.

The Upper Austrian Chamber of Agriculture is calling for swift assistance for affected farms. Its president, Franz Waldenberger, said existing safety nets were no longer sufficient when drought and sharply rising operating costs occurred at the same time. He called for national support, including relief on social insurance contributions or direct payments to affected farms.