According to Spain’s Deoleo – the world’s biggest producer of “liquid gold”, the record high prices for olive oil are expected to drop by half in the next few months.
According to CNBC, Deoleo believes that one of the toughest periods in the history of the industry is about to end.
Recent olive oil harvests have been affected by a prolonged drought and extreme weather in Southern Europe.
Olive oil prices have reached record levels due to a shortage of the product.
CNBC reported that the shortage of olives had forced the industry into crisis mode, and led to a surge in crime in Spanish supermarkets. Olives are a mainstay of the Mediterranean diet.
Olive Oil Crisis is not Over
The price of oil has fallen from its record highs, as the estimates indicate an improved harvest during the 2024-25 seasons.
CNBC reported that harvests will be better in countries like Spain, Greece and Tunisia.
CNBC reported that “despite the fact there have been some steps toward improvement, it wouldn’t be accurate to say the crisis has ended,” Miguel Angel Guzman said, Chief Sales Officer at Deoleo.
Guzman noted:
The price of olive oil is still a source of tension, particularly for the oils with higher quality, like Extra Virgin.
He also said that the olive harvest for the 2024-25 season is still uncertain.
Normalization will take place gradually
Deoleo described recent years on the olive oil markets as being one of the most challenging.
Over the summer, the makers of olive oil brands like Bertolli and Carbonell called for “a profound transformation” in the industry.
Guzman, a CNBC spokesperson, said that prices of olive oil will likely fall from their current levels between November and January. This will depend on how stable harvest conditions are in the next few weeks.
As of last week, the price of extra virgin olive oil in Spain, which represents 40% of total production worldwide, was down 19% compared to the previous month, at 6 euros per kilogram. The price was down 35% since January, when it reached a record-high.
Olive oil is sold in Spanish supermarkets for between 9 and 10 euros per kilogram.
Deoleo stated that the prices could fall as low as 5 euros, if conditions for harvests remain favorable.
Industry faces challenges
CNBC reported that the olive oil production in Spain is expected to reach 1.3 million tonnes this season, up from 670,000-680,000 tons last season. Kyle Holland, senior market journalist for oilseeds at Expana was quoted in their report.
The outlook for the olive oil price in the current year remains gloomy. The sector’s profits will also be affected by this, as the production is expected double from the previous season.
Holland stated that the harvests of Greece, Tunisia and Turkey will also be sharply higher than last season. The quality is also “very good”.
Deoleo’s Guzman also said that the industry has faced the need to adapt adverse weather conditions.
He said that the olive oil industry has been investing heavily in new agricultural technology for resistant olive oil varieties.
He told CNBC
Climate change is a major threat to the industry.
This post, World’s largest producer of olive oil, Deoleo expects the prices to almost halve within months, may be updated as new information becomes available.
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