World olive oil prices have soared as the effects of last year’s disastrous olive harvest in Europe are being felt at the consumer level.
Several recent articles in the international media have reported on the world olive oil shortage and subsequent rise in prices due to the poor harvests of the 2014 – 2015 season in Spain and Italy, the two countries responsible for 70 percent of the global olive oil output.
Spain suffered from extreme heat and drought in the summer of 2014, while Italy was hit with fruit fly infestations and the deadly Xylella fastidiosa bacterium which has decimated olive groves in Puglia.
Greece and Tunisia, however, have experienced increased yields, 127 percent and 300 percent respectively, compared to 2013/2014 levels. Tunisian olive oil exports have reached a record high, increasing seven-fold compared to the previous year, with most exports going, not surprisingly, to Italy and Spain. But the increased yields in Greece and Tunisia were not enough to compensate for the shortages in Italy and Spain.
Bloomberg reported last week that figures from Euromonitor indicate that consumer prices for olive oil have increased by 10 percent and have now surpassed the global inflation rate for packaged foods by 3.7 percent. Reports by Oil World also revealed that the price of Spanish extra virgin olive oil is now at its highest since April 2006, at $4,272 a ton.
Meanwhile, citing figures from the British trade journal The Grocer, which covers the UK’s FMCG (fast-moving consumer goods) sector, The Guardian reported that the average price of a liter of extra virgin olive oil rose from £6.32 ($9.84) in December 2014 to £6.95 ($10.82) in July 2015. The same article revealed that demand for olive oil by retailers and distributors in June 2015 was 12 percent higher than what exporters could deliver.
International Olive Council (IOC) figures put the total world output this year at 2.3 million tons, a fall of one-third from last year’s production and the lowest level since 2000.
Related Articles
Jul. 23, 2024
The Challenges and Opportunities Facing Morocco’s Olive Oil Sector
While investments are being made to promote quality and climate resilience, some policies are hurting local consumption and inhibiting value-added production.
Jul. 15, 2024
Xylella Fastidiosa Identified in Extremadura
Extremadura joins the Balearic Islands and the Community of Valencia as the Spanish regions with active Xylella infestations.
Feb. 7, 2024
Acesur CEO Highlights Andalusia's Key Role in Sector's Future
Gonzalo Guillén believes production capacity is the limiting factor to increase olive oil consumption and Andalusia remains best positioned to expand the market.
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.
Feb. 19, 2024
A Dismal Harvest Concludes in Greece
With the country’s olive oil production almost halved compared to last year, record prices at origin have shaped a market searching for equilibrium.
Jun. 5, 2024
Pompeian VP Says Baltimore Bridge Disaster Cost Company Millions
While the company was able to receive its most recent shipment of European olive oil through the port, the measures taken after the disaster were unsustainable in the long run.
Jun. 12, 2024
Record Olive Oil Prices Drive Food Inflation in Greece
A study from the National Bank of Greece found that record olive oil prices were responsible for almost 50 percent of the increase in total food inflation.
Feb. 29, 2024
Supermarkets in Spain Poised to Clash Over Olive Oil Prices
Olive oil prices at origin remain at historic highs, but direct-to-consumer promotions by some brands have supermarkets weighing their next move.