AGP Executive Report

EU–US Trade: The EU has activated its trade pact with the US after weeks of tariff pressure, setting a 15% uniform tariff for EU exports (with exceptions) while steel and aluminum remain the biggest unresolved flashpoint. Heat & Water Stress: Europe is bracing for more extreme weather as oceans hit record June temperatures and El Niño strengthens, raising risks for heatwaves, floods and cyclones—while drought is already biting agriculture, with northern Italy reporting waterways in a “critical state” and irrigation limits looming. Spanish Farm Trade: Andalusia’s eggplant exports surged 46% in the first four months of 2026 to 135.8M euros (69,380 tons), alongside strong growth in zucchini, cucumbers and other vegetables. Livestock & Breeding: Tineo (Asturias) hosts the Purebred Spanish and Crossbred Horse Competition, bringing 115 horses from 21 councils plus herds from Extremadura, Pontevedra and Madrid. Policy & Inputs: Spain’s fuel VAT change may affect cross-border refuelling patterns, and the wider EU renewables push includes solar-railway ideas that could matter for energy planning in rural areas.

Heatwave and farm risk: Europe’s late-June heatwave is estimated to have caused over 20,000 excess deaths, with Spain among the countries seeing record temperatures—raising fresh alarms about cooling, public health, and knock-on pressure on crops and livestock. Wildfire support: Portugal has asked the EU, Spain and Morocco for extra firefighting aircraft as extreme heat drives nationwide wildfire risk, with restrictions on agricultural burning and forestry work. Water stress and irrigation choices: Northern Italy’s Po basin is in a “critical state” from drought, with falling lake levels and saltwater intrusion affecting irrigation—an indirect warning for Mediterranean water planning. Spain fuel costs for farmers and hauliers: Spain is restoring standard 21% VAT on fuel from 1 July, ending a temporary VAT cut, while diesel and road-freight support discounts continue to taper. Andalusian exports: Andalusian eggplant foreign sales jumped 46.7% in the first four months of 2026 to 135.8M euros, alongside strong growth in other vegetables.

Drought Pressure on Crops: Northern Italy’s Po River system is in a “critical state” as Lake Maggiore drops to 48% capacity and saltwater pushes 25 km inland, forcing difficult crop choices and threatening irrigation. Heat & El Niño Watch: The WMO says El Niño conditions are set to strengthen rapidly in July–September, raising the odds of heatwaves, drought and heavy rain—bad news for farming planning across Europe. Wildfire Risk in Iberia: Portugal has asked the EU, Spain and Morocco for extra firefighting aircraft as a heatwave drives very high wildfire risk, with access restrictions and bans on controlled burns for farmers. Andalusia Export Boost: Andalusian eggplant exports rose 46.7% in the first four months of 2026 to 69,380 tons and €135.8m, with other vegetables also gaining value abroad. Local Tech for Resilience: A flower grower in Andalusia is using agricultural drones to disinfect and fertilize amid climate-driven fungal surges, pointing to growing demand for agri-robotics. Livestock & Breeding: Extremadura’s livestock sector is taking part in Asturias’ Purebred Spanish and Crossbred Horse Competition in Tineo, supporting the region’s morphological championship circuit.

AgriTech in the field: In Andalusia, a 62-year-old flower grower is using agricultural drones to disinfect and fertilize automatically after heat and heavy rains have boosted fungal problems—an example of how climate stress, labor shortages and aging farmers are pushing robotics demand. Climate pressure on crops: EU winter crop yield outlook stays slightly above average, but dry spring heat and depleted soil moisture are raising risks for parts of Spain, Poland and northern Italy, with summer crops facing higher water stress. Wildfire threat to rural life: Spain’s Costa Brava wildfire has scorched about 750 hectares and triggered stay-at-home orders for around 12,000 people in Girona, with the regional government requesting help from Spain’s Military Emergencies Unit. Market swings from heat: After a tough start, Spain’s watermelon and melon prices are rebounding as European heatwaves boost demand beyond supply, while Dutch mini-cucumber and standard cucumber markets are stabilizing after earlier price pressure. Garlic safeguard push: Spanish garlic growers plan to ask the EU for a safeguard clause, arguing imports from China and Egypt are priced below Spanish production costs and shrinking the domestic garlic area.

Fishmeal Crunch: Javier Blas warns the world has an anchovy problem, with production down sharply and prices surging—an issue that can ripple into aquaculture costs for salmon, seabass, shrimp and more. EU Funding for Spain: The European Commission has cleared major RRF payments for Spain (over €5.7bn), tied to housing access, public health resilience, sustainable mobility and rail digitalisation. Air Quality Watch: The EEA says most EU states are on track for air-pollutant cuts, but ammonia—largely from agriculture—remains the sticking point. Heat Pressure on Farms: Spain is in peak fire season with active blazes and huge burned areas, while Europe’s heatwave continues to raise health and productivity risks for outdoor work. Agri-Related Enforcement: Police in Ciudad Real rescued wallabies and other animals from an illegal cannabis farm, highlighting ongoing rural enforcement and animal welfare concerns. Rural Tech for Agriculture: Vodafone Spain is set to trial satellite connectivity for remote Spanish farms, aiming to improve coverage where networks struggle. Livestock & Local Food: A junior livestock show and auction highlights ongoing youth involvement in animal care and feeding skills.

Agrifood Tech & Connectivity: Vodafone Spain will trial satellite connectivity for agricultural devices in Almería, partnering with local cooperatives like CASI to help growers stay connected in the field. EU Environment & Farming Link: A new EEA check finds most EU countries are on track for air-pollutant cuts, but ammonia remains the sticking point—largely tied to agriculture—highlighting the pressure on farmers to reduce NH3. Fresh Produce Trade: Murcia’s fruit and vegetable exports to the UK keep sliding after Brexit, down sharply in both volume and value, as new UK requirements raise costs and competition from Morocco, South Africa, Turkey and Egypt intensifies. Animal Health Monitoring: Research on equine herpesvirus testing suggests air sampling at major equestrian events could spot viral activity earlier than horse-to-horse swabbing. Biofertilisers & Innovation: Rovensa Next joins a €6.4m EU project aimed at scaling circular biofertilisers, pushing alternatives to conventional inputs. Heat Risk: With Europe’s extreme heat continuing, Spain’s summer conditions are again raising health and operational concerns for outdoor work and farming.

Climate & Heat Stress: Europe’s record-breaking June heatwave is forcing a rethink on adaptation, with Spain reporting around 1,000 excess deaths linked to the extreme temperatures and warnings that buildings, power and public services weren’t built for sustained heat. Agri Environment: The same heat pressure is also raising wildfire risk across southern Europe, with agricultural land affected in Greece—an early signal for crop and livestock impacts as summer intensifies. Farm Energy Transition: A University of Córdoba study highlights how Andalusian irrigation communities could use solar to cut electricity costs for pumping water, aiming at energy autonomy for farms. EU Air Quality (Ag Link): The EEA says most EU states are on track for air pollutant cuts, but ammonia reductions remain the sticking point, largely tied to agriculture. Fertiliser Resources: Research on a disputed Atlantic seabed finds phosphate concentrations comparable to Morocco’s reserves, keeping fertilizer supply and geopolitics in the spotlight.

Energy for Irrigation: Researchers from the University of Córdoba tested a solar-plus-storage style approach for Andalusian irrigation, aiming to cut reliance on grid power for pumping water. Agri-Tech & Inputs: Rovensa Next joined a €6.4m EU project (BIO²) to scale circular biofertilisers and microbial solutions, targeting lower nitrogen and phosphorus pressure. Fresh Produce Trade: Murcia’s fruit and veg exports to the UK fell 26% since Brexit, with tomatoes hit hardest as UK rules and logistics keep squeezing Spanish suppliers. Water & Soil Innovation: Murcia hosts the Melon & Watermelon Innovation Days, bringing seed companies and growers together to showcase new trials and varieties. Aquaculture Genetics: Benchmark Genetics helped build a high-density genomic SNP array for key European clam species, supporting breeding and long-term shellfish aquaculture resilience. Biofungicide Approval: Amoéba received marketing authorization in France for AXPERA, a biofungicide for vineyard and vegetable crops, with wider EU rollouts expected.

Circular fertiliser push: Rovensa Next has joined the €6.4m EU BIO² Horizon Europe project to scale bio-based fertilisers and microbial solutions from renewable, circular inputs, targeting at least two fully circular products by 2029. Food price pressure: Circana reports the average EU6 shopping basket now costs €95.35, up nearly €5 since 2023, with consumers still feeling higher food and household costs. Coastal pollution spotlight: Murcia received two “Black Flags” from Ecologistas en Acción—Portmán Bay for pollution linked to historic mining contamination, and Mar Menor for mismanagement—while the region also notes strong Blue Flag results. Immigration and farm labour context: Spain’s mass regularisation has drawn over 1 million applications, with the government arguing legalisation supports sectors with labour gaps, including agriculture. Energy transition for industry: Kraft Heinz says its European factories, including in Spain, now run on 100% renewable electricity via initiatives such as a long-term virtual PPA with Repsol.

Immigration & Farm Labor: Spain’s mass legalisation drive has drawn about 1 million applications for a one-year renewable residence permit, with Sánchez calling it “justice” and critics warning it could destabilise EU migration pressure. CAP Pressure on Farmers: A new look at CAP payments shows they’ve fallen from about 30% to 17% of farmers’ income, squeezing farm margins. Stone Fruit Market: Spanish stone fruit faces price pressure in key export markets as European retailers push promotions, with heatwave conditions not stopping aggressive discounting and added competition from Greece. Watermelon Economics in Almería: Almería greenhouse growers earned an average 0.51€/kg for watermelons in 2024—19% above Spain’s average and far above producers in Greece, Morocco, Senegal and Turkey. Food Safety & Grains: COCERAL’s mycotoxin management survey highlights continued focus on preventing Fusarium risks across traded grains, including guidance to farmers on resistant seeds and adapted treatments. Local Rural Access: Almería’s El Alquián residents get a resurfaced dirt road after months of complaints, improving safe access during bad weather. Renewables for Industry: Plenitude starts output at a 220 MW solar plant in Salamanca, and Kraft Heinz reports 100% renewable electricity across European factories, including in Spain.

Immigration Deadline: Spain’s regularization drive for undocumented residents is drawing to a close, with about 900,000 applications logged by June 12 and expectations that the final total will top one million, offering a one-year renewable residence permit for eligible applicants. Heatwave Pressure on Food & Work: Europe’s record heat is already disrupting schools, services and labour productivity, with agriculture flagged as a major hit area as extreme temperatures push workers to slow or stop. Fuel Costs for Farm & Fishing: The EU Commission approved €402m in Spanish state aid to road transport firms facing higher fuel prices from the Middle East crisis, with support linked to additional fuel costs. Bioenergy for Farms: Copenhagen Infrastructure Partners backed a major Catalonia biogas project (Cobirgy) aiming for over 230 GWh biomethane yearly and producing soil improver and organic fertiliser. Olive Oil Market Signals: Cobram Estate Olives shares jumped on investor bets tied to tight global supply and strong demand for premium olive oil. Food Policy Watch: Spain also approved a package to cushion the Middle East crisis impact, including expanded fertilizer subsidies and support measures for farmers and fishermen.

Middle East Shock Support: Spain’s Council of Ministers approved a €1.8bn package to cushion the economic fallout, extending fuel tax relief for transport operators, farmers and fishermen through September and expanding fertilizer subsidies, while giving the competition watchdog more power over fuel pricing and market practices. Heatwave Pressure on Food Work: Europe’s record-breaking heat is already hitting health, labour productivity and agriculture, with WMO warning that extreme heat is becoming more frequent and drought/wildfire risks are rising. Potato Outlook Under Stress: Late-June heat is raising alarms for the 2026 potato crop, with Spain’s Castile y León seeing slowed growth and possible 10–15% yield losses, while EU monitors flag water stress across western and central Europe. Fresh Produce Supply Moves: Aldi plans to buy 38,000+ tons of Spanish fresh fruit and vegetables this summer (+16%), with watermelons/melons leading fruit volumes and potatoes/tomatoes near 40% of vegetable supply. Olive Sector Challenges: A look at olive oil competitiveness highlights rising costs, price swings, pests and aging farms, plus the need for stronger producer coordination and export strategy. Tobacco Stability Deal: Extremadura’s Ibertabaco signed a multi-year agreement with Deltafina for about 3.3m kilos of tobacco per campaign (2027–2029), aiming to bring stability as CAP reform tightens aid and raises environmental demands.

Heatwave on Spain’s farms: Europe’s record heat is already hitting food supplies, with reports of crop stress and livestock impacts across the region, including Spain where pigs are losing appetite and fruit faces risk at key blossoming stages. Wheat price pressure: France’s wheat prices jumped to a three-month high after extreme temperatures raised concerns about yield losses, with spring crops and corn flagged as especially vulnerable. Olive oil risk: Analysts warn Spain’s olive harvest could shrink and quality could fall due to heat and low rainfall, likely pushing prices higher. Water and income strain: A study links heat plus drought to bigger household income losses across Europe, with central Spain among the hardest hit—an indirect warning for farm costs and water-dependent production. Tourism pressure (agri-adjacent): Spain’s total solar eclipse tourism rush is driving up accommodation demand in the path of totality, adding short-term strain to local services during peak summer.

Heatwave Alert for Spain’s Farmers and Visitors: Spain’s Interior Ministry issued warnings as a Sahara-driven heatwave pushed record temperatures above 45C in parts of the north and kept highs near 37–38C into the weekend, with rain easing conditions in some areas but danger persisting. Economic Pressure from Heat + Drought: A new Climate Analytics study links combined heat and drought to nearly 3% average household income losses across Europe, with central Spain among the hardest hit (around 8.8%). Wildfires and Farm Risk: Extreme heat has fanned wildfires across southern Europe, including Spain, raising pressure on rural land and emergency services during peak agricultural season. Livestock Fair in Murcia: San Pedro del Pinatar held its historic Royal Livestock Fair and equestrian parade, drawing breeders and farmers from across the southeast, highlighting ongoing rural traditions alongside a hotter summer.

Heatwave & Wildfires: Europe’s record-breaking heat is driving wildfires and emergency responses, with France reporting heat-related deaths and drownings alongside blazes that also hit farmland, while Spain is among the countries seeing escalating fire risk. Health & Agriculture Stress: Spain’s heat toll is being tracked via MoMo mortality monitoring, underscoring how extreme temperatures are turning into a direct threat to people and production. Food Sector Spotlight: A Spanish food-industry profile highlights the sector’s weight in Spain’s manufacturing economy (2.5% of GVA, nearly 500,000 Social Security affiliates, 27,000+ firms), but notes public support still lags behind its importance. Livestock Culture in Murcia: San Pedro del Pinatar’s Royal Livestock Fair returned, drawing breeders and farmers across Murcia, Alicante and Almería and focusing on animal health rules and equestrian heritage. Water & Drought Watch: Reports from southern Europe point to drought pressure on irrigation and farming, with heat pushing rivers and water systems toward damaging low levels.

Heatwave & Wildfires: Extreme heat across France, Greece and Spain has sparked wildfires and emergency responses, with France reporting heat-related deaths and drownings while firefighters battle blazes that also hit farmland. Public Health Pressure: Spain’s MoMo system logged 327 heat-related deaths in days, as Europe’s hospitals face rising admissions for dehydration and heatstroke and schools and transport are disrupted. Agriculture Under Stress: The same heat is reshaping farming conditions across southern Europe, with drought fears and water constraints threatening crops and irrigation. Water & Environment: A new European Environment Agency bathing-water report finds 96% of monitored sites meet minimum EU standards and 85% rate “excellent,” highlighting where summer swimming is safest. Local Farming Culture: San Pedro del Pinatar in Murcia held its Royal Livestock Fair, drawing breeders and farmers for horses, oxen and donkeys and renewed focus on animal health rules. Nerja River Dispute: Environmentalists in Axarquía have filed a formal objection over plans to reopen the Río Chíllar walk under a concession model, warning it could turn the river area into a “theme park” and affect protected habitats.