Olive Oil Prices to Spike as Mediterranean Drought Persists

Italian olive oil output could drop by as much as 50 percent.

The following article, written by Julie Al-Zoubi, appears on Olive Oil Times. 

Industry experts are warning that consumers will have to fork out more for olive oil, as droughts in the Mediterranean region take their toll on olive oil production. Consumers across Europe have already seen prices rise by an average of 26 percent in the last two years. Spanish consumers have felt the pinch of a massive 36-percent price rise according to research group IRI.

The price of EVOO has already spiked by nearly 25 percent this year resulting in wholesale prices of reaching over $4,200 per ton. Retail prices have not yet caught up, due to the time lag and supermarkets buying in bulk.

Panayotis Karantonis, director of the Athens-based Greek Association of Olive Oil Processors and Packers told the Financial Times, “Over the coming months the prices in supermarkets in the U.S. and U.K. will be higher than two-to-three months before.”

A predicted drop of 14 percent in world production has been forecast. Mediterranean countries including Spain, Greece, and Italy have seen a sharp fall in production due to the hot, dry conditions that have prevailed.

The International Olive Council (IOC) estimated that Italian output may halve this year to 243,000 tons from last year’s 475,600 tons. Continue reading at Olive Oil Times. 

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