The price of extra virgin olive oil has risen to unprecedented levels, highlighting the extreme climate changes in downturn in the economy.
The EU's three most prominent olive oil production companies have struggled with these price surges after global production fell from 3.4 metric tons last year to 2.4 metric tons this year.
The demand for olive oil is currently higher than supply, and industry experts predict this will continue into 2025.
The Spanish market accounts for 40 percent of the world's olive oil production and has dramatically increased prices. Extra virgin olive oil is priced at EUR 864.5 per 100 kilogrammes, up 64.4 percent from the same period last year. Refined olive oil is up EUR 831 per 100 kilogrammes, up 71.9 percent from last year.
Italy and Greece, other key countries in the olive oil market, have also experienced dramatic price increases of 60.5 percent and 82.8 percent.
Due to rising demand and limited suppliers, olive oil prices are expected to continue to increase. This has caused consumers to switch to alternative oils, such as sunflower and rapeseed.
Olive oil thefts have also risen within supermarkets, with Spain naming olive oil as the most wanted item by shoplifters. This has led to increased security measures in supermarkets.
Olive oil seeds are susceptible to climate change, and recent conditions have proven too harsh for them to grow optimally.
The increase in temperature, especially during the winter months, has impacted flowering buds. Due to fewer days reaching lower temperatures, the amount of flowering has decreased and has lessened the quantity and quality of olives.
A study on the impact of climate change on olive crop production highlighted that from 2031-2070, non-irrigated olive crops will not be able to be maintained.
This has raised awareness about the urgent need for adequate and timely planning of suitable measures to ensure the sustainability of the sector.
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