Olive oil prices have increased significantly over the past year due to various factors, including drought in major producers like Spain and unfavorable weather conditions in Italy, Greece and Portugal. The New York Times reported.
Spain, the world’s largest producer and exporter of olive oil, has faced prolonged drought conditions, leading to reduced production and resulting shortages. Global olive oil prices have exceeded $9,000 per metric ton.
Severe droughts in Spain have contributed to olive oil shortages and rising prices. Ahmet Abbasi/Anadolu Agency | Getty Images.
Spain’s recent olive oil production fell to around 610,000 tonnes in the most recent season, a decrease of more than 50% from the usual 1.3 to 1.5 million tonnes, according to data from market intelligence company Mintec, by CNBC.
The resulting shortages and price hikes have trickled down to consumers, with some brands like Bertolli seeing a price increase of almost 22% for a 750 milliliter bottle of extra virgin olive oil – at the This time last year it was $9 and now costs $11, according to data firm IRI. New York Times.
“It’s not an inexpensive product, and it’s probably going to exclude some of my customers from that product line in my store,” said Michelle Spangler, who has a store in Texas and regularly stocks husk oil. olive, at the point of sale.
The rising price of olive oil has had a direct impact on various small businesses, including restaurants. Owners like Jesse Shapell, who runs a pizzeria in Brooklyn, told the New York Times that it has had to adjust prices due to soaring costs, raising the question of how much consumers are willing to pay, as well as the financial burden affecting its ability to provide quality products to its customers.
“Given that this is a small business already operating on low margins, the rising cost of an essential ingredient like olive oil creates another challenge in bringing high quality pizza and cuisine quality and affordable to our community,” Shapell told the outlet.
Related: Thousands caught trying to smuggle eggs into US amid rising prices
High prices lead to theft
As with anything in high demand and low availability, the allure of olive oil has attracted the attention of criminals. At the end of August, a Spanish oil mill reported theft of approximately 50,000 liters of extra virgin olive oil worth more than €420,000 ($450,000). In a similar incident In August, at the Terraverne oil mill in Teba, Spain, thieves stole 6,000 liters of extra virgin olive oil worth €50,000 ($53,000), as well as computers, chairs and tables of the oil mill.
In recent weeks, unexpected thefts of olive oil have also hit Greece. The Polygyros olive cooperative and the Mitseas olive mills were both targeted by thievesthe authors having recovered approximately 37 tonnes from the Polygyros storage and more than 100 kg of barrels from Mitseas.
Looking ahead, no immediate relief is in sight. Kyle Holland, oilseeds and vegetable oils analyst at Mintec, said CNBC that if drought continues to deplete olive oil stocks, supplies could be exhausted before the usual October harvest.
Orange juice also sees price increases
Olive oil isn’t the only kitchen staple experiencing a price spike. The widespread threat of greening disease (a bacterial disease that affects citrus plants) and erratic weather conditions have impacted citrus groves and triggered an uptick in the price of juice.
Prices of frozen concentrated orange juice have more than tripled since the end of 2021, according to the report. Wall Street Journal reportedand last Friday they reached a new high of $3.91 per pound, up from $2.11 in October of the previous year, according to FactSet, according to the WSJ.
An orange orchard in Arcadia, Florida. Chandan Khanna/AFP | Getty Images.
The main culprit behind the rise in orange juice prices is the greening disease, which has largely hit Brazil, the world’s largest orange producer, making it difficult to meet demand amid falling production. production. But greening disease does not only affect overseas groves. Steve Johnson, a citrus grower in Florida, told the WSJ that he has seen a significant drop in his yields, going from about 500 to 600 boxes of oranges per acre in previous harvests to only 150 to 200 boxes this year.
“There’s probably not a tree that isn’t infected with greening,” Johnson told the outlet.
