Mikhail Charny, lead expert on the National Technology Initiative’s (NTI) FoodNet working group, said: DEA News”He said that drought and abnormal heat in Europe could lead to a decline in the olive harvest, which would lead to a shortage of olive oil in the world, but increase the demand for sunflower oil from Russia.
According to USDA data, in the 2022-2023 agricultural year, global olive oil production is projected to decrease by 11% to 2.9 million metric tons.
“You have to understand that drought affects not only olive crops, but all oilseeds in general: maize, sunflower. And in this case, the sunflower reserves owned by Russia will now be in great demand, both in the form of seeds, and in the form of finished products, and in the form of oil, ”says the expert.
According to Charny, in some areas where olive trees were traditionally grown, the plants began to shed their leaves, an “extremely negative factor”.
“This means that the market will recover much more slowly, there will be a deficit for several years and for quite some time. Olives are not peas, they are not wheat, they cannot be quickly restored. These are perennial plants, woody shrubs, difficult to put into operation,” he said.
At the beginning of July this year, the government of the Russian Federation signed a resolutionaccordingly, the calculation of taxes on grain, sunflower oil and food will be made not in dollars, but in rubles.