It is possible that the record prices of olive oil will be cut in half
One of the most difficult periods for the olive oil industry is coming to an end and the record prices will be halved in the coming months, the Spanish company Deoleo expects.
The world’s largest producer of olive oil predicts a drop in prices, which were at their maximum at the beginning of the year due to the impact of drought as a result of climatic changes to the crop and high interest rates and inflation in the value chain.
Olive oil prices in the EU in January were up to 50% higher than a year earlier, and in Great Britain they jumped 150% compared to the end of 2021.
In Spain, which accounts for almost half of the world’s olive oil production, two consecutive years of drought limited the olive harvest and caused a jump in prices worldwide.
Deoleo, producer of brands such as Bertoli and Carbonello, expects a much better harvest in the 2024-2025 season.
“The outlook for the coming months is positive as the market is expected to begin a gradual stabilization as the new crop progresses and deliveries increase,” Deoleo head of sales Miguel Angel Guzman told CNBC.
He added that the crisis is not yet completely over because there is still tension over the prices of certain high-quality olive oils, such as extra virgin olive oil.
In any case, the Spanish company expects prices to be cut in half from the record levels at the beginning of the year.
“Price relaxation is expected between November, December and January, provided weather and harvesting conditions remain stable in the coming months,” Guzman said, CNBC reported.
Meanwhile, the prospects for other Mediterranean countries are uneven. Greece is struggling with a prolonged drought, while Turkey, which has become the world’s second largest olive oil producer in 2023, expects a record harvest and production of 475,000 tons of olive oil.
Source: Beta
Photo: Pixabay, Freepik
Source: bizlife.rs
