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Olive oil is becoming more and more expensive because it is becoming more and more scarce. Spain is by far the world’s largest producer of olive oil. The annual yield, which has averaged around 1.5 million tons in recent years and accounts for almost half of global production, dropped below half (665,000 tons) in the 2022/2023 harvest season. The reason for this was unfavorable weather conditions and very little rain. This year, Madrid’s Ministry of Agriculture expects only a slight improvement.
The low production volume combined with increasing production costs had consequences: The price of extra virgin rose from 400 to over 800 euros per 100 kilograms in a single year. A few years ago the price of this top quality olive oil in Spain was just over 200 euros.
The situation was similar in other important producing countries such as Italy and Greece. This has strange consequences: Olive oil suddenly became a popular stolen product. In the summer months alone, more than 80,000 liters of oil were stolen from warehouses and oil factories in Andalusia, southern Spain. “El Mundo” newspaper recently wrote that manufacturers are afraid of “liquid gold pirates”.
As Cretan oil producer Giorgos Papadakis said, there is also an increase in the theft of olives and oil in Greece. “The thefts are not as big as in Spain, but if 200 kilos of quality oil is stolen from a farmer here, 2 thousand euros remain in the thief’s pocket overnight.”
Oil and olives in tanks and warehouses in Spain and Greece are now better monitored. In some Spanish stores, bottles have for some time even been protected by plastic caps, like expensive alcohol.
Spanish farmers don’t just have to deal with thieves. The sharp decline in demand is a major concern. Many conventional oil factories had to close this year due to loss-making operations. Cristóbal Cano, Secretary General of the Union of Andalusian Small Farmers and Livestock Farmers (UPA), warned that “an irreparable economic and social disaster is approaching” in olive cultivation. The sector employs approximately 365,000 people in Spain.
The crisis also hit Italy. Production there is gradually decreasing and prices are increasing rapidly. According to the agricultural association Coldiretti, an increase of almost 50 percent was recorded this year. David Granieri, president of the oil farmers’ association Unaprol, speaks of an “unprecedented situation”.
Italy is one of the leaders in olive oil consumption, and the crisis is quickly making itself felt in the shopping cart. It is estimated that the country produces approximately 290,000 tons of extra virgin olive oil this year. To no longer be so dependent on imports, especially from Spain, the government in Rome wants to grow more than a million new olive groves.
Hundreds of large and countless small and micro farmers in Greece currently produce up to 330,000 tonnes – but only every other year, because olive trees last a full year and then rest for a year, so yields drop. 2023 is a very weak year.
There are also problems in neighboring Turkey. The Ministry of Commerce first reported records in August: production and exports increased significantly. Turkish exporters responded to the increasing demand from abroad and offered more for exports. But this was not good news for most Turks. Basic foodstuffs became scarce and expensive. There is currently an export blockade.
Farmers around the world unanimously point to increasingly frequent extreme weather events as the cause of this malaise. Take Greece, for example: Farmer Vassilis Mouselimis explained that trees do not have time to rest due to the mild winter. Later in the spring, temperatures were too high during flowering, leading to problems with fruit formation. In the end, there was not enough rain and this was bad for the growth of the olives. José Gilabert is 59 years old and has been growing olives in Andalusia since the age of 13. “It was cooler here at the end of August,” he told the newspaper “El País”. “And we are currently continuing to harvest the olives in short sleeves in November.”
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
