Due to the drought, we can even pay a quarter higher price for olive oil

Due to the heat waves, the olive harvest is worse, but the demand for oil is greater. (Photo: PIxabay)

Miguel Colmenero, the export manager of Acesur, the largest supplier of British supermarkets, warns that customer prices could rise by 20-25%. This is a direct consequence of the heat waves starting in June 2022, which will affect Italy, Portugal, France and Spain the most, as these countries have not had rain in recent weeks and this has caused significant stress on the vegetation. If olive trees can’t grow new branches due to lack of water, the next season’s harvest can be just as horrible.

Consumer prices are expected to increase by more than 20 percent

Half of the world’s olive oil is produced in Spain, which threatens the stability of the product’s export and price. Of the 1.4 million tons of olive oil produced annually in Spain, Acesur produces more than 200,000 tons of products – as own-brand products of several grocery chains – and exports them to more than 100 countries. Most of the olives used in its products are grown in Andalucia in southern Spain, where there hasn’t been much rain lately. According to Colmenero, while Spain produced around 1.4 million tonnes of olive oil last year, only one million tonnes is currently forecast for this season. As a result, the reference price of extra virgin olive oil would increase, which would affect world market prices. Over time, this also appears in consumer pricing in the form of a 20-25% price increase.

foodingredientsfirst.com