This article was originally published in English
According to Spanish company Deoleo, one of the most difficult periods for the industry is coming to an end and prices will be halved from their record levels in the coming months.
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The world’s largest olive oil producer plans a cooling in prices after the industry saw record prices earlier this year due to the mixed impact of climate change-related drought on the crop and high interest rates and inflation across the value chain .
In the EU, the Olive oil prices increased by 50% in January compared to the previous year and in the UK they jumped 150% compared to the end of 2021.
In Spain, home to nearly half of the world’s olive oil production, two consecutive years of drought have limited olive harvests, leading to rising prices worldwide.
Deoleo, the maker of consumer olive oil brands such as Bertolli and Carbonell, expects a much better harvest for the 2024-2025 season.
“The outlook is positive for the coming months, as the market is expected to begin to stabilize and normality is expected to be gradually restored as the new harvest progresses and supply increases,” said Miguel Ángel Guzmán, sales director at Deoleo, to CNBC, adding that the crisis is not entirely over, as there are still tensions over the prices of some high-quality olive oils, such as extra virgin.
The company expects prices to fall by half from record levels earlier this year.
“The easing of prices at origin should begin between November, December and January, provided that weather and harvest conditions remain stable in the coming weeks,” according to Guzmán, as cited by CNBC.
Meanwhile, other Mediterranean countries face a mixed outlook. Greece is facing a prolonged drought, dashing hopes of a bountiful harvest. Turkey, which became the world’s second largest producer of olive oil last year, is forecasting a record harvest of 475,000 tonnes of olive oil.
Additional sources • adaptation: Serge Duchêne
Swiss
