In Spain, the world’s largest olive oil producer, prices have soared to record highs, topping 7 euros, due to the ongoing drought.
Olive oil prices continue to break records after a prolonged period of unusually dry weather in southern Europe damaged crops.
Prices in Europe first climbed above 4 euros per kilogram in September, before rising to more than 7 euros per kg in Spain, the world’s largest producer, as well as Italy and Portugal, due to rising temperatures and a lack of rainfall.
“Concerns extend beyond the season”
“We’ve had a very poor crop, prices have never been higher and the concerns extend beyond the season we’ve had,” Kyle Holland, vegetable oils analyst at commodity data firm Mintec, told the Financial Times.
Spanish authorities say the devastating effects of heatwaves and water shortages show the urgency of tackling climate change. But next week’s election could install a government weaker on the climate crisis.
Rising prices have become a hot topic in Spain, where olive oil is a staple crop and has a huge impact on the economy. News organizations have featured extensive coverage on where consumers can buy the most affordable olive oil as prices soar.
Europe produces two-thirds of the world’s olive oil, according to EU data. According to Mintec, producers in Southern Europe reduced their total olive oil stocks from 265,000 tons at the end of May to about 205,000 metric tons at the end of June.
Stocks are declining by about 80,000 tons every four weeks, which means that stocks will be much reduced in the three months before the start of this year’s harvest, which usually lasts until February.