The price of olive oil may increase significantly

By: Trademagazin Date: 2024. 05. 20. 11:57

Olive oil prices have soared to record levels, caused by a shortage of “liquid gold” and extreme weather due to climate change, plunging the industry into crisis. This essential food item, a staple of the Mediterranean diet, has seen its prices surge unexpectedly, shocking both consumers and industry veterans.

Spain, accounting for over 40% of global olive oil production, typically produces between 1.3 to 1.5 million tons annually. However, during the 2022/2023 season, production plummeted to just 666,000 tons, indicating a severe drop from normal levels. Prices are expected to climb further due to ongoing reductions in reserves.

The crisis has been exacerbated by a wave of crimes in Spain, where olive oil has become one of the most frequently stolen items. For instance, approximately 50,000 liters of extra virgin olive oil were stolen from a facility in Cordoba last August. According to Deoleo, the industry must undergo a significant transformation, which could stabilize as future harvest yields return to normal levels.