The perfect storm has fallen on the olive oil industry. Extra virgin, highest quality, According to the weekly bulletin published by the Ministry of Agriculture, Fisheries and Food on olive oil prices, its price increased by 56 percent compared to last year’s campaign. Drought, energy crisis and war in Ukraine multiplied the costs of consumers. Due to the high temperatures recorded during the summer months, this year’s harvest was 50%. However, the supply is secured. It is the sale of this product that can be damaged.
The olive harvest has not yet taken place, the expectations are negative. Thirst reduced production by half. The harvest will reach 780,000 tons of oil this year, almost half of last year’s production, according to the government-managed forecast. For comparison, one of 1.45 million tons was recorded last year. In addition, the collection of this product becomes complicated due to the recent rains.
Increase in other countries
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All these factors increase the prices of extra virgin olive oil. It currently exceeds five euros per litre, gaining a 6.1% increase over the past month.. Other oil-producing countries are also experiencing problems. In both Italy and Greece, harvests decreased and prices rose. According to the European Commission’s latest report on olive oil, it rose 31% in Italy and 27% in Greece, but Spanish represents a weight four to five times greater in the market than Italian or Greek. In addition, Spain exports up to 70% of its production.
The increase in the price of olive oil motivated by the lack of sunflowers. As a result of the war, its production decreased and many sectors and segments turned to olive as a substitute.