Olive oil prices in Spain, the world’s largest producer, are soaring and breaking records, reaching an average price of €5,516 per ton.
Several factors have contributed to this price surge. Firstly, rising production costs have played a significant role. Additionally, Spain’s hot and dry climate has impacted olive tree yields, making it challenging to meet global demand. The 2022/23 crop year was particularly affected, experiencing a historically poor harvest due to scorching weather during blossoming and a severe drought, further intensifying the price increase.
The climate factor is a long-term concern, as rainfall is essential for improving future harvest expectations and potentially stabilizing prices.
Due to the poor harvests in the western Mediterranean region, Spain is stepping up to meet international demand, which in turn has put additional pressure on domestic prices. Experts predict that global olive oil consumption will surpass production, raising concerns about potential shortages in the market.
While short-term projections indicate that prices will continue to rise, there is optimism for the future. Factors such as the establishment of new olive grove plantations, relatively stagnant or slightly rising consumption rates, and normal climatic conditions may eventually contribute to price stabilization or even reduction in the long run.
Interestingly, the rising prices have received a positive reception from some industry insiders. They believe that this trend will put an end to the race to the bottom, allowing producers of high-quality oils to be appropriately valued and recognized for their dedication to excellence.
An option that pure olive oil customers can consider as an alternative is pomace olive oil. It is suitable for frying and general cooking purposes. See our comparison table attached.
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