Ljoyful Price:%s of the liquid oil worse quality rises much higher than extra virgin ones expired, to the rise in raw material and energy prices and the effects of the war in Ukraine, among other factors. This is one of the key results from Lonja de la Junta de Andalucía (the latest data is for the third week of July, updated today Friday), which shows: extra virgin, 3.65 euros per kilogram, 43% more expensive More than January 2021 and two grades of base lampante extra virgin olive oil for 3.45 euros, 76% more.
Some conclusions consistent with the results of the report Increase in food raw material prices Conversion to consumer prices in the euro area, published by the Bank of Spain recently, Oil prices in this country have increased by 56% since the beginning of last year.
Also, information from the regional delegation of Agriculture in Córdoba, so far this year, the price of the two-degree base lamp increased by 21% and the price of the extra virgin almost halved, 12%. This evolution has been confirmed by industry sources pointing to rising production costs and sunflower oil shortages as the main causes.
Industrial Oil Factories Business Association Manager, Macarena Sánchez explains: “Given the big bottlers are looking for an alternative to sunflower oils, we’re seeing how. Lampantes rises much more noticeably than extra virgin olive oil».
Regarding the increase in prices, he also states that it is due to different conditions, such as the relationship between supply and demand, because «there is not enough oil to meet world demand, He underlines that this will be the most important for me and highlights the overlap of other factors such as increases in energy and raw materials or bad forecasts for the next campaign due to drought.
Again, Macarena Sanchez states “We do not see a contraction in consumption. Recent oil productions are very good and the market is on the rise right now,” he adds. olives, because we expect”. Regarding the development of prices, “it may continue to rise or remain the same. I don’t think they will fall,” admits the general secretary of Almazaras Federadas de España.
on your part, Rafael Sanchez de Puerta, President of Agri-Food Cooperatives, He recalls that the war in Ukraine (due to its impact on sunflower oils and other seeds) and poor forecasts for the next harvest boosted olive oil demand, emphasizing that “when prices go up, the market suffers”.
Rafael Sánchez de Puerta, managing director of Dcoop, predicts that this will affect all links in the chain and companies will be “affected by increased costs and reduced sales volume”.
Uncertainty
On the other hand, commercial agency specializing in oil John Morales “This year, the price difference between the different categories is very small, and refined olives are almost the same or more expensive than extra virgin olives,” he says. In this sense, he states: refining costs increased He states that due to the increase in energy and fuel prices, the lamp was taken to the refinery, otherwise it was replaced with higher categories to meet the demand for olive oil.
Regarding this last issue, Juan Morales explains: “Campaigns start earlier each time, they run out sooner due to having better quality oil and mechanization. By finishing it sooner, there will be less lamps, which is poor quality oil”, which leads to the need to use others.
Refined, more expensive
These professional details are currently one grade of basic lampante costs 3.60 euros per kilogram; virgin, at 3.65 euros and extra, from 3.70 euros, and refined olives at 3.75 euros. “This is because production costs (gas, electricity and transport) are higher and there is less lampante. Higher categories are used because it is scarce”.
Asked about the development of prices in the coming months, Juan Morales said, “There is a bad harvest expectation for next year. If it continues without rain, they will continue to rise because the production forecasts will be worse.” “Sales are split due to uncertainty and waiting to see if the price will go up further as it hasn’t rained.”
Decline in sunflower prices
On a positive side, Juan Morales notes that the price of sunflower oil “returned to normal”, reminding that before the war the price of 1.50 euros per kilogram had reached 3.30 euros (“so there was a lot of demand for sunflower oil,” he says, “olive oil”) and now it costs about 1.90 euros.
“We will face many difficulties”
When asked about inflation this Thursday, Francisco Martínez, president of the consumer association Facua, said, “We will continue to stagnate in family economies. We will have problems in the coming months and many challenges to move forward.”
In this way, he commented that the increase in oil prices, which has increased by 56 percent since the beginning of 2021, according to the report of the Bank of Spain, “is now drought and other factors,” and that this is another consequence of the current scenario.
According to Francisco Martínez, the country “is going through a very complex economic situation that the government will break ground on, with taxes being passed on most prices that will alleviate the related issues, but there are also taxes that can be mitigated. As in other countries, it hurts the consumer and is not done. This leaves us with expensive electricity. causes us to pay for gasoline and other products that affect the shopping cart,” he said.
Francisco Martínez said, “Consumers are experiencing a major economic recession that has been dragged down by the electricity and oil sectors. Many sectors have affected the increases in their products, something that is not reflected at the moment: We had a decline in oil. The fall in prices, which does not reflect six weeks on any sector, affects the consumer’s pocket.” .