Climate disasters drive prices higher in Europe

As much of southern Europe endures scorching temperatures and flash flooding, olive oil prices in the main benchmark markets continue to rise. Italian extra virgin olive oil has nearly reached the price of €7 per kilogram. Greek oil has exceeded €6 per kilogram, and Spanish oils are approaching the same price. The main culprit for the rise in prices is ongoing climatic disasters. Due to droughts and enormously high temperatures in the 2021/22 crop year, olive oil production in Spain fell by 55 percent year-on-year to 660,000 tons. Drastically lower yields in the country, usually responsible for almost half of global production and annual exports of nearly €3 billion, have resulted in rising prices across the olive oil sector supply chain. Due to its immense size, prices in Spain largely dictate prices in other international markets. “Compared with €5,300 per ton in January this year, the wholesale price in mid-April was €5,800 per ton,” said Fanny de Gasquet of Baillon Intercor, a ...