Agricultural organizations responsible for the incident have faced a tough year, with the olive sector enduring drought that dramatically reduced yields. The harvest this year fell by about 50 percent as olive trees struggled to cope with dry conditions. Yet, this drop in production did not suppress prices for extra virgin olive oil. In fact, prices climbed higher, offering farmers greater returns per kilo despite the smaller crop.
Price data from the Ministry of Agriculture confirms a strong upward trend. Across the January to December period, average prices for olive oil rose by roughly 60.55 percent. The advance was particularly sharp in the last quarter, when EVOO cost about 31.25 percent more than in the prior period. Organic varieties also saw a notable rise, with a 46.4 percent increase over January to December and about an 18 percent gain in the October to December window.
Looking at detailed regional figures, data from the Andalusian Ministry of Agriculture show that the price per kilogram of extra virgin olive oil began the year at 3.27 euros in January 2022. By December 19, the market price had moved to 5.25 euros per kilo. The threshold of four euros was not met by Cordoba EVOO until early October, when it briefly surpassed that mark. From that point onward, prices trended upward week by week into December, reflecting strong demand and tightening supply.
By early November the price had already gained about 75 cents and, by December, had surpassed five euros per kilo. Specifically, on December 12 the price stood at 5.15 euros and reached a record 5.25 euros per kilo on December 19, underscoring sustained price momentum as the year closed.
Ecological or organic EVOO followed a similar but slightly different trajectory. While the increase did not appear as large as the general market, the movement remained solid throughout the year. Prices never dipped below four euros per kilo, beginning at 4.03 euros in January and climbing toward six euros by the final week of the year, trading around 5.90 euros on December 19.
Organic extra virgin olive oil posted the most rapid gains in the final quarter, rising by 57 cents per kilo from January to September and by about 1.30 euros from September to December. The combination of healthy demand and limited supply pushed both conventional and organic EVOO into higher price bands as the year drew to a close.
The arrival of rains and the hope for a more robust next harvest could eventually ease price pressures, but that relief is unlikely to appear soon. Market observers note that the current high prices for extra virgin olive oil can be a double-edged sword. While producers enjoy stronger revenue, consumers may perceive the oil as less affordable and look toward alternative oils such as sunflowers. That shift, if it occurs broadly, could present added challenges for reestablishing EVOO as a regular choice for some buyers later on, a dynamic that stakeholders in the sector say warrants careful management and clear communication about quality and value.