"Olive oil is becoming a luxury," said Francesco Mazzei, who runs Sartoria Italian restaurant in London.
The price of olive oil recently hit a seven-year high in Britain after poor olive harvests in Spain and Italy led to short supplies while the British pound has weakened. Brexit resulted in a drop in the value of the pound, which helped drive up prices of imported olive oil by around 20 percent.
We’ve been forced to go from people who make and bottle olive oil to currency speculators.- Walter Zanre, Filippo Berio UK
Britain’s restaurateurs have felt the blow of more expensive olive oil. Several chefs spoke out about the impact of having to pay more for a kitchen staple.
Francesco Mazzei, owner of the London-based Sartoria restaurant told Bloomberg he had increased his menu prices to combat the extra cost of sourcing olive oil. Mazzei said “Olive oil is becoming a luxury.”
Ben Tish who runs Salt Yard, (a London tapas restaurant) said he had recently paid $648 for 100 liters of olive oil that cost $573 three months ago.
Bocca di Lupo’s owner, Jacob Kennedy told Bloomberg he had been unable to obtain his restaurant’s preferred brand of olive oil.
Russell Norman, co-owner of Polpo (an Italian restaurant chain) told Bloomberg, “As a restaurateur, 2017 terrifies me.” Norman voiced his dismay over the high price of olive oil and the impact of Brexit on staffing.
Jamie Oliver began closing branches of “Jamie’s Italian,” blaming the collapse of the pound and the resulting higher costs of purchasing olive oil and other ingredients from Italy. Oliver told The Independent newspaper “Olive oil is expensive and very much in the hands of nature.” Critics, meanwhile have pointed out that Oliver’s restaurants failed to draw customers for other reasons.
Jamie Oliver closing restaurants “due to Brexit”.
Not because food is sub-par, over-priced & no-one has been going for 5 years.
Not that.— Sempersursum (@sempersursum) January 6, 2017
British shoppers have also been stung by the higher costs of olive oil. Supermarkets increased olive oil prices by about 20 percent since summer 2016.
Walter Zanre, Filippo Berio’s UK managing director told The Telegraph, “2017 will be very bad for olive oil.” Zanre predicted that British consumers could be struck by further increases in extra virgin olive oil prices of up to 30 percent if the GBP and the Euro reached parity. “We’ve been forced to go from people who make and bottle olive oil to currency speculators,” Zanre said.
Zanre voiced his fear over an impending olive oil crisis that could be worse than anyone expected. Global demand for olive oil has recently rocketed while supply has fallen.
Britain imports approximately 300,000 tons of olive oil annually. Around 50 percent of Britain’s olive oil comes from Spain and Italy.
Spanish olive oil prices spiked by around 10 percent since October. In Italy price hikes reached almost 30 percent. Erratic weather in the Mediterranean region during 2016 resulted in poor olive harvests which has led to the higher cost of olive oil.
More articles on: 2016 olive harvest, import/export, prices
Apr. 9, 2024
Tunisian Ag Minister Urges Sector to Take Advantage of Bumper Harvest
Olive oil production rebounded in the 2023/24 crop year. Abdelmonem Belati believes the sector must work together to export extra virgin olive oil quickly.
Jul. 18, 2024
Despite Falling Prices at Origin, Olive Oil Retail Prices Remain Elevated
Various factors contribute to persistently high olive oil prices at retail, including market structure, speculation and resilient global demand.
Feb. 1, 2024
Tunisia's Olive Oil Price Cap Gets Mixed Response from Consumers
The government capped the price of olive oil to keep household costs down, but locals question the efficacy of the plan.
Apr. 11, 2024
Turkish Producers Pray Export Ban Ends with Ramadan
While the prohibition on bulk exports has helped control domestic prices, producers worry it has hurt their credibility with international partners.
May. 7, 2024
Olive Oil Export Ban Sours Table Olive Sales in Turkey
While table olive exports soared in the first five months of the 2023/24 campaign, the ban on olive oil exports is blamed for holding the sector back.
Oct. 18, 2024
Trump’s Tariff Proposals Would Sting U.S. Olive Oil Consumers
Whether there is a ten- or 60-percent tariff on all imported goods, most observers believe olive oil will become more expensive, and consumers will pay the difference.
Nov. 27, 2023
High Olive Oil Prices in Spain Spur Interest in Black Friday Discounts
While prices at origin have dipped slightly, they remain elevated in stores, prompting concern among retailers over theft and consumers over fraud.
Jan. 3, 2024
Upstart Belgian Importer Stakes Claim on the World Stage
The founders of ASUR source award-winning oils from Greece to sell in Belgium and the Netherlands, facing challenges associated with nascent olive oil markets.