Olive Oil Prices Jump In The EU
A decline in the olive harvest in Greece, Italy and Spain, combined with high demand for olive oil in the EU, has resulted in European prices for the product increasing by 20-40% year-on-year.
Suppliers of olive oil have sent notices to retail chains to raise prices of their products.
According to one of the suppliers, one of the reasons is the expected decline of olive crop in Spain. The country accounts for about 50% of global olive production, but due to unfavourable climatic conditions, including a cold winter and storm Filomena, the olive harvest this year will be lower than expected.
The Andalusian authorities have already lowered this season’s olive oil production forecast from 1.34 million to 1.05-1.1 million tonnes due to Philomena, as well as dry and hot weather in autumn 2020.
The situation is exacerbated by an expected 10-30% decline in the Greek and Italian olive harvests. According to the European Commission, in January extra virgin olive oil in Spain cost €2.54 per kg, up 21% from a year earlier. Prices for Italian Extra Virgin oil rose 44.4% to €4.75 per kg in the same period, while prices for Greek oil rose by 17.7% to €2.57.