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How the weather affects the economy: an expert article in AiF

An article on the impact of weather factors on the economy, on the agricultural sector in particular, was published in “Argumenty i Fakty” newspaper. The authors learned from experts what is the danger of bad weather and whether the constant heat is so terrible, Among the invited experts was Sergey Fomenkov, the Vice-President for Marketing and Strategy at ECO-Culture holding.

The article features the weather data of this summer in the central region of Russia: after a few days of heat, the weather turned cool and rainy. People changed their summer shirts for fall jackets and forgot about the sun and heat. According to Moscow meteorological data, July 2019 was the coldest one in the last 100 years.

Most importantly, the weather anomalies affect not only people but also the country’s economy, especially the agricultural sector. Constant rain and cold are definitely negative factors for the horticulture. Plants growth is slowing down, which subsequently forces the producer to use the same machinery for harvesting different crops. Resources may not be enough to harvest the entire yield.

According to Sergei Fomenkov, a cold summer with frequent rains directly affects the yield of vegetable crops. In particular, they start rotting. Cold temperatures contribute to the spread of diseases, with fruits, herbs, and vegetables growing slower. There is a high probability that dacha farmers and gardeners will not harvest the crops as planned or will be forced to survive the following winter without it at all.

But not only private farms are suffering losses. Large enterprises are taking risks as well: low yields may prevent the producers from traditionally reducing the prices for vegetables in August-September. This will affect all segments of the population. Moreover, this situation may even accelerate inflation, which will sabotage the economy on a federal scale.

In rainy summers, farmers have to spend more money on plant protection against fungal and bacterial diseases. Increased humidity conditions require additional drying and higher costs on grain processing. All this has an impact on the final cost of almost all products in the supermarkets.

The article goes on to discuss the impact of bad weather on other business and economic sectors.

Read the full text of the article in the “AiF” August 15 issue.