Black Year For Olive Oil, Prices Soar

Olive oil prices are rising rapidly. While food inflation has affected many families, prices for what is one of the cornerstones of the Mediterranean diet have literally skyrocketed, with prices in Italy up in just one year by more than 30% in retail and from 90 to 100% for wholesalers.

The problem has less to do with the inflation spiral and more to do with inventory shortages due to poor harvests last year. This concerns not only extra virgin olive oil produced from Italian raw materials, but also regular olive oil and blends with oils from Spain and North Africa.

The reduced harvest in Spain, the world’s leading producer, to below one million tons is a heavy burden, and according to Italian news agency Adnkonos, citing the estimates from trade association Unaprol harvests, even two major producers such as Tunisia and Turkey will be far from high yields. This is mainly related to the drought of recent months, accompanied by crop failure. Now stocks are running out, and all this is reflected in the final price.

Unaprol’s first estimates for 2023-2024 production in Italy indicate approximately 270,000 tons of virgin oil (+15% compared to last year), which is an improvement, despite the sector being still far from its most productive years, when production reached 300,000 tons.