In June and July last year, temperatures in Russia exceeded 40 degrees Celsius. The resulting drought caused severe losses in agricultural production in southwest Russia. Wheat production in Russia was reduced by 30 percent compared to the previous year.
This triggered a surge in the wheat price on international grain markets of 60 to 80 percent.
The effect of extreme weather is not only limited to agriculture. The snow storms in the US at the beginning of 2011 stalled the construction industry, directly affecting the real estate industry. More than 6,000 flights were cancelled and extreme weather brought severe losses to the transportation, tourism and delivery industries.
And now the record cold weather is still gripping the northern hemisphere causing casualties and making people's lives difficult.
