Climate change has also upended the global olive oil market

By: Trademagazin Date: 2023. 09. 22. 12:04

The global price of olive oil has sharply increased due to the impact of climate change on olive production in Mediterranean countries. Unusually dry and hot weather in these regions has halved the olive crop, leading to more than a doubling of olive oil prices in just one year. Moreover, there is no sign of the market situation improving in the near future.

The price of olive oil has soared According to the U.S. Department of Agriculture’s report, the world market price of olive oil reached a record level of $8,900 per ton by early September. The product’s price increase had already reached 130% year-on-year by August. Experts attribute this growth mainly to the extreme, hot, and dry weather caused by climate change in the producing countries, which led to a significant decline in olive fruit yields.

For example, Spain, the world’s largest producer, experienced the third hottest summer on record this year. Consequently, olive oil production in Spain plummeted from the usual 1.3-1.5 million tons to 610,000 tons. Experts say that Italy and Greece, two other major producers, are facing similarly dire situations.

Furthermore, as olive oil has more than doubled in price over the course of a year, it has become increasingly attractive to thieves. For instance, around 50,000 liters of olive oil worth approximately €420,000 disappeared from the family-owned Marin Serrano El Lagar oil mill in one night at the end of August. Prior to that, thieves made off with 6,000 bottles of extra virgin olive oil from the Terraverde mill, amounting to around €50,000 in losses.

The VG, a Norwegian newspaper, suggests that the price surge could continue as olive oil reserves are dwindling. Moreover, Turkey, another significant producer, suspended bulk olive oil exports until November 1 due to rising prices.

It’s worth noting that people who consume more than half a tablespoon of olive oil daily experience a 28% reduction in the likelihood of death from dementia compared to those who do not or rarely consume this type of oil, according to a report summarizing the results of a three-decade-long study of 90,000 Americans’ diets and mortality data by Harvard University.

The study’s participants included 4,749 people who died from diseases related to dementia. Researchers highlight that vegetable oils, including olive oil, are considered superfoods and that incorporating them into a healthy diet may contribute to longer life.