Worst drought in 70 years hits Italian crops

Crop yields are under threat in Northern Italy, which is suffering its worst drought in 70 years, with suppliers warning of a "significant reduction" in output that will further impact Europe's cost of living crisis.

Italy has declared a state of emergency in five northern regions surrounding the Po river, an important economic area that accounts for one-third of the nation's agricultural production.

The Guardian newspaper reported that importers are preparing for price rises of 50 percent or more for rice and tomatoes, and that production of olive oil could be down between 20 and 30 percent on last year.

Its sources said the drought was also likely to reduce crops of apricots, peaches and pears. The BBC reported that watermelon crops have also been hit, and that parmesan cheese producers are worried that the effects of the drought mean they will not be able to feed their cows.

Jason Bull, chief executive of rice and tomato importer Eurostar Commodities, told The Guardian that farmers he had spoken to said they are worried crops are going to "rot in the ground as there is no water to feed them".

Kyle Holland, an analyst at market research group Mintec, said there could be a "substantial dent in global supply" of olive oil.

"We are already seeing some olive trees producing no fruit, which only happens when soil moisture levels are critically low," Holland said. "According to industry contacts, the lower production and, therefore, limited supply of olive oil is likely to cause prices to increase in the coming months."

Figures from Mintec show that the cost of Italian extra virgin olive oil is already up 28 percent from two years ago, which it said is due in part to the impact on global supplies of cooking oil caused by the conflict in Ukraine.

Last week, the Italian government said the regions of Emilia-Romagna, Friuli Venezia Giulia, Lombardy, Piedmont and Veneto would be given 36.5 million euros ($38 million) in emergency funds to tackle the water shortage.

An environmental engineer for the Po River Basin Authority, Marco Gardella, told Euronews that the drought has caused serious problems for the region. He said: "Since last November the amount of precipitation has decreased by half and the amount of snow has decreased by 70 percent. This has prevented lakes from being filled, something that is crucial to sustaining the river flow."

Meuccio Berselli, General Secretary of the Po River Basin Authority, told Euronews that the drought has raised concerns about climate change and that urgent action was required beyond water restrictions.

"We have to accelerate the green transition process," he said. "It's something we should not debate anymore — everyone knows it exists. Next year could be even worse as our research tells us temperatures are set to increase and droughts like this latest one could potentially last longer than usual."