European olive oil prices soared to more than 7 euros per kilogram, from 4 euros per kg in September. An unprecedented situation that is mainly due to the drought and water stress that has particularly affected southern Europe for several months.
Spain, which alone accounts for almost 50% of world production, is in the front line and already fears a second poor harvest as European temperatures continue to rise. Therefore, a general shortage of olive oil is already foreseen next autumn.
850,000 tons produced compared to 1.3 million in normal times
The International Olive Council forecasts that Spain will produce 850,000 tons of olive oil in 2023 compared to 660,000 tons last year, which was the worst year in ten years.
But that was without taking into account the prospects of an unprecedented heat wave that should hit Europe particularly hard this summer. In addition, in a “normal” year, the country is capable of producing 1.3 million tons of oil.
The industry is already in crisis since last spring, when the heat interrupted the flowering of olive trees in Spain. And with the heat peaks already reaching 43°C this week, some regions of southern Spain are already seeing the fruits of their trees fall to the ground.
“I can’t share how much anxiety this is causing us”
“In Spain we already know that it will be another bad year, but nobody has understood what is happening now. The record temperatures are not going to improve the situation,” the general manager of the branch, Walter Zanre, of Filippo Berio, told The Guardian. the world Cup. largest producer of olive oil.
“I cannot share how much anxiety this causes us. Last year, Spain entered the harvest a bit late, which somewhat made up for the deficit. This year, the barrels are dry. Even if Spain produces the expected 850,000 tons, the price situation is worse.”
The latter adds that prices will continue to rise, as will prices, which explains why other producing countries such as Italy and Portugal are facing the same crisis. According to the latest chiffres du Bureau de la statistique nationale Britannique (ONS), the prize de détail de l’huile d’olive au Royaume-Uni ont increased from 47% by an (une moyenne of £6.16 pour 500 ml in May).
Olive oil stocks ran out from September
Therefore, supermarkets are expected to experience shortages of olive oil starting next fall. The reasoning is simple: the next harvest in autumn should produce new oil only from November, and the stocks produced last year should run out from September.
Faced with rising prices, buyers have reduced their spending on olive oil. Consumption in the UK has already fallen by a fifth, according to the Kantar Institute. For their part, bottlers and other olive oil distributors invoked force majeure clauses in their contracts to justify both the reduction in quantities ordered and the increase in their prices.
“We are seeing a very difficult situation in the coming months. It is not an exaggeration to say that olive oil is an industry in crisis. Although the prices are very high, no one is getting rich”, comments Walter Zanre, recalling that, indeed, it is the small producers who are most likely to go bankrupt.
And as the context of climate change is not going to improve over time, the Filippo Berio group is already turning its sights to Turkey and even Chile to strengthen its supply of olives to Europe, which traditionally relies on Italy, Greece and Spain.
Source: BFM TV
