Olive oil is one of the commodities that consumers will pay dearly for this year. What are the reasons for the increase in the cost of the product?
2022 promises to be one of the best years for olive oil production in decades, both in terms of quantities and yields, as well as producer prices. However, factors such as hard-to-reach and expensive labor, rising energy prices, high prices for agricultural inputs, and inflation prevent the industry from “making a good price” on the final product.
With Spain “burned out” this year (the 2022/2023 harvest is expected to be the worst in 10 years and the second worst in the 21st century), production has generally declined across the Mediterranean, except for Greece and Turkey, countries where demand for olive oil first cold pressed is unabated, market representatives say. However, the price of oil has skyrocketed, and producers and consumers are fighting their own “battle” to cope with the all-out high cost.
The price at which olive oil leaves the press:
- 2021: €2.90-€3.50 per litre.
- 2022: €4.50–€5.20 per litre.
Capacity 16.5 liters for the consumer:
- 2021: 75–80 euros (4.50–4.80 euros/litre).
- 2022: 90–100 euros (5.45–6 euros per litre).
The reasons why the price of oil “jumped” (according to manufacturers):
- Rising prices for fertilizers, pesticides and fuel for agricultural machinery.
- Workers’ wages.
- The cost of spinning (operation of production mechanisms).
- Packaging.
- Delivery.
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