Olive Oil Prices Climb as Production Remains Tight
Rising prices for olive oil are making headlines in both consumer markets and the farming sector. After two lean harvests and forecasts that stay discouraging, buyers and producers are already alert to a sustained price increase. The core concern is simple: a kitchen staple is becoming more expensive even as demand softens.
Industry observers worry that the shortage is not just a domestic issue. Declines in sales are visible at home and in export markets, complicating efforts to keep steady pricing and supply. In Córdoba, Rafael Sánchez de Puerta, president of Cooperativas Agroalimentarias de Córdoba, emphasizes that this price shift has pushed prices to a point where it cannot be ignored. He cautions that if consumption falls further, price controls may become a necessity to preserve market balance.
Despite the mounting pressure, the outlook is not seen as unpredictable by the sector. Sánchez de Puerta notes that the current conditions align with what has been forecast in recent campaigns, and nothing in the pattern has surprised operators.
Two consecutive tight production years have left the market with insufficient stock to bridge campaigns. The end of the current harvest is described as highly stressful due to the limited oil available for sale. Looking ahead, prospects for the next campaign appear challenging as well. Output this year fell well below the long-term average, edging around 140,000 tons but barely surpassing 90,000 in some estimates.
Given the scenario, the leadership of Cooperativas Agroalimentarias calls for solutions to lift production. A key proposal is to expand irrigated olive groves, which would raise overall output and benefit consumers by stabilizing future supply. Much of the existing olive groves rely on rainfall and suffer when droughts hit, leaving irrigated areas as a critical lever for resilience and growth in the sector.