The agronomic and macroeconomic forces behind olive oil prices in Italy
Market & Price Trends
Published Nov 22, 2023
Olive oil prices in Italy have experienced a significant increase due to a combination of factors such as climate change impacts, labor shortages, and inflation. Climate change has affected olive production by altering suitable growing areas and worsening extreme weather events, leading to declining production over the past three decades and an increase in olive fruit fly infestations. In addition to agronomic challenges, the lack of available labor and rising production costs have further complicated the situation for producers.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Olive oil prices in Italy have risen from 90 to 130 percent since September 2022, reflecting a combination of agronomic and macroeconomic factors that have complicated the situation for producers and consumers. Climate change, olive fruit fly infestations, inflation, labor and import shortages have created a perfect storm for the Italian olive oil sector. According to research published in the scientific journal Agronomy, climate change has impacted olive production significantly over the last few years in Italy, modifying the suitable growing areas for olive trees and exacerbating extreme weather events. While climate change has made it possible to cultivate olive trees in areas where it was not before – such as in many northern and mountainous regions of Italy – it has also made olive growing harder and more unpredictable in traditional areas. For example, last summer and winter were very dry, causing trees to suffer from drought. Then, during flowering, windy and rainy weather ...