Olive oil in Spain is at record prices, but without reaching a ceiling yet

Published 2023년 1월 3일

Tridge summary

The average price of olive oil is expected to reach up to seven euros per liter in supermarkets due to unprecedented high prices throughout the supply chain and a potential crop yield of less than 780,000 tons, half the previous harvest. This situation is causing market tensions and leading to increased prices, despite efforts to contain them by the distribution industry. The industry will need to import oil from countries like Turkey and Greece to meet demand. Farmers face high production costs and are not being compensated for their expenses, and the only way prices could decrease would be if consumption significantly dropped, although this has not been the case so far.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

It is still speculation, but it is quite reasoned, and it is made by an expert in the sector, the strategic consultant Juan Vilar: "The average price of olive oil could perfectly reach seven euros per liter in the supermarket, six in origin and seven at the point of sale". The olive oil sector is experiencing a unique moment, unprecedented in its history. A perfect storm. Prices have never been so high in all the links of the chain. In origin (what the primary sector sells to the industry), last week it has been above 5 euros per kilo in the case of extra virgin, 4.9 for virgin and 4.8 for lampante, according to the Poolred information system. In November, the Ministry of Agriculture calculated that the average price of virgin olive oil at origin was 4.81 euros, 51.5% more than on the same date last year. And the prospects in the field do not anticipate a respite in the price, quite the contrary. "The prospects for the campaign (2022-23) are very bad, and according to what is ...

Source: Diariodesevilla