Spain’s Deoleo Sees Olive Oil Prices Staying High Until June 2024

By: Trademagazin editor Date: 2023. 11. 09. 09:50

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Olive oil prices in Spain will remain at record levels at least until June after a drought hit the south of the country for the second year in a row, Deoleo, the world’s largest olive oil producer, said.

Production in the 2023/2024 crop year is expected to be about a third below the four-year average, according to official figures, cutting supply and driving up prices.

Spain is the world’s top olive oil producer, supplying about 40% of the world’s output, making it a reference for international olive oil prices.

The price of extra virgin olive oil has doubled in Spain since the beginning of the year, reaching €8.10 ($8.54) per kilo in the first half of October, according to official figures. The prices are 155% higher than in the same period two years ago.

In supermarkets, the price for a bottle of extra virgin olive oil rose 76% in September, compared with the same month last year, according to a Nielsen report.

Spain’s agriculture ministry expects olive oil production to reach 765,300 metric tonnes in the 2023-2024 harvest, up from 663,000 tonnes in 2022-2023 when output halved, but still a third below the four-year average.

Deoleo, which operates brands such as Bertolli and Carbonell, is more optimistic, predicting that the new harvest that started on 1 October could reach 800,000 metric tonnes if there is more rain in the spring, which could result in farmers lowering prices.

ESM