Olive oil prices in Spain have risen sharply. The rise in prices for this staple food of the Mediterranean countries is mainly due to the severe drought in 2022, which seriously affected the harvest.
Concerns have already begun to arise about oil production in Italy, which has been hit hard by the drought, as well as in Greece, a country in the same climate zone as Italy.
According to the IMF, olive oil prices have reached $5,989 per metric tonreaching a 26-year high.
Olive oil prices in Spain have risen by 60% since June to date, reaching 5.4 euros per kilo, according to figures cited by the Financial Times.
In Greece, which has not experienced such problems due to drought, the increase in olive oil prices from March 2022 to March 2023 is estimated at 17.5%. This is partly due to the steadily increasing demand from abroad, which leads to higher prices by Greek producers.
Spain is a barometer for olive oil pricesbecause is the largest manufacturer in the world. It is estimated that about 50% of the olive oil consumed worldwide is produced here. In Spain, however, steadily deteriorating weather conditions, especially lack of rain and very high temperatures, have cut the country’s production over the past twelve months by about half, or to about 780,000 tonnes.
Industry analysts told the British newspaper that they had not seen similar prices in the last 20 years, and also expressed concern about the production of olive oil in other regions of the Mediterranean. It is indicated that 2022 was the year with the least rainfall for Italy since the 19th century.
In particular, Spain, according to Fortune, experienced the second driest March and April this century.
According to Earth.org, the first two weeks of April, “not a drop” of rain fell on half of the country. Last year was the hottest since 1961, when more detailed data began to be recorded.
The country’s water reserves are set at 50%, but the situation is much worse in Andalusia, the region of the country with the highest production.
Recall olive oil is harvested in the Mediterranean region between October and February, which means that if there is not enough rain, the new harvest will not be as good. Industry officials report that stocks of olive oil, especially premium (excellent) olive oil, are shrinking.
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