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Austrian farmers take advantage of warmer winters to grow olives

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Austrian farmers take advantage of warmer winters to grow olives

2026-01-14 11:44 Last Updated At:16:33

Farmers in a rural town in eastern Austria are looking to cultivate Mediterranean-style staples as the impact of climate change sees winter weather in their region warm up.

Young entrepreneurs William Markl and Jonathan Beck are among those seeking to turn their local town of Gols in the eastern state of Burgenland into their own version of Tuscany, an Italian region producing some of the finest olive oils in the world for centuries.

This once far-fetched idea is now becoming increasingly feasible given the dramatic climate shifts which are taking place. Since the turn of the 20th century, temperatures in Austria have risen by three degrees Celsius, more than twice the global average.

Previously, olive trees would not survive Austrian winters of the past, but they are now thriving thanks to the milder climate, with some olive groves expanding across several hectares in the area.

"The last 10-15 years, climate change in this region has been so strong that nowadays our winters are so mild that olives just grow here," said Markl.

Over the last three years, Markl and Beck have planted some 400 olive trees and are expecting to steadily increase production.

"If we reach a point where we maybe harvest around 2,000 kilos we will be thinking about producing oil," said Beck.

Beyond olives, some Austrian farmers have also started cultivating rice while winegrowers are testing new heat-resistant grapes. This comes as traditional crops are challenged by increasing periods of heat and drought in the summer months.

Markl, who is half-Chinese, has also started to grow the famously spicy Sichuan peppers and Chinese dates alongside his olive trees, in response to consumers seeking out more exotic foods.

He expects the entire local region to undergo a major transformation in the coming years.

"It's fun to like drive around the region and then you see another new olive grove from somebody else. Like maybe in a few years, 10-20 years, we're going to look like Italy here," Markl said.

While the duo are looking to tap into the potential now afforded by the changing local environment, several farmers worry that Austrian summers are now becoming too dry, even for olive trees.

New irrigation canals which are set to withdraw water from the mighty Danube River could help ease the situation, as the agriculture community looks to stay on top of the ever-evolving climate situation.

Austrian farmers take advantage of warmer winters to grow olives

Austrian farmers take advantage of warmer winters to grow olives

The oil price shock triggered by the war in the Middle East could reduce euro-area GDP growth by around 0.4 percentage points over the first year following the shock, according to a European Central Bank (ECB) study released on Wednesday.

Since the outbreak of the war in late February, disruptions to oil flows through the Strait of Hormuz and reduced oil supply from the Middle East have pushed crude prices sharply higher, said the study.

It added that the increase in oil prices triggered by the current shock has so far been larger than that observed after the Russia-Ukraine conflict in 2022, although it remains smaller than the rise seen during the Gulf War in the early 1990s.

The ECB said higher oil prices are likely to weigh on the euro-area economy through rising production costs, lower household purchasing power, weaker global demand and heightened uncertainty.

Based on historical evidence, the ECB estimated that a geopolitical oil supply shock that raises real oil prices by 10 percent could reduce euro-area GDP growth by around 0.2 to 0.3 percentage points in each of the three years following the shock.

The study found that the impact on investment is likely to be more pronounced than that on private consumption. According to the ECB, heightened geopolitical uncertainty may prompt firms to delay expansion plans, equipment purchases and hiring decisions, dampening investment activity and amplifying the impact on economic growth.

The ECB noted that the euro area's dependence on oil has declined over time, but the response of investment to geopolitical oil supply shocks appears to have remained broadly stable.

The study cautioned that the overall impact of the current shock remains highly uncertain and will depend on the magnitude and persistence of the oil price increase. A prolonged period of elevated oil prices, broader supply-chain disruptions or spillovers into gas markets could further intensify downward pressure on euro-area growth.

Middle East oil shock could cut euro-area growth by 0.4 percentage points in first year: ECB

Middle East oil shock could cut euro-area growth by 0.4 percentage points in first year: ECB

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