Retail olive oil prices in Spain are expected to rise due to a production decrease of 15.8 percent in Andalucia as a result of the droughts that affected the region this year.
Retail olive oil prices in Spain are expected to rise due to a production decrease of 15.8 percent in Andalucia as a result of the droughts that affected the region this year.
The price for extra virgin olive oils at the origin in Spain went from €3.70 per kilogram to €3.84 in mid-October. The Sistema de Información de Precios en Origen (POOLred) registered a total of twenty-seven trades for 1,359 tons, with an average price of €3.72 during the 14 – 24 October period.
According to Poolred, bulk virgin extra olive oil commanded €3.76 per kilogram, virgin oil was at €3.68 and lampante was €3.60 per kilogram.
On the 19th of October, the Observatorio de Precios de la Federación Española de Industriales Fabricantes de Aceite de Oliva (Infaoliva) indicated commercial prices for extra virgin oils at €3.668 per kilogram, virgin oils at €3.619 per kilogram and lampante, in the Picual variety, at €3.539.
In Andalucía, olive oil production is estimated to be 884,900 tons for the current campaign, and in Jaén, the province, where output this season is down 28 percent, oil production is anticipated to be 360,000 tons.
It is predicted that there will be significant production decreases in almost all of the provinces in Andalucía for the 2017 – 2018 campaign. However, Sevilla, Málaga and Almería are the exceptions, showing an increase over the previous campaign.
Scarce rain was an issue in the spring as well as in the fall, and high temperatures in the summer also contributed to low harvest. However, according to the Ministry of Agriculture, estimates may vary depending on precipitation. Harvest production may increase if rain is present in the following days or decrease if the drought continues.
The low production numbers in Spain coincide with an estimated modest global increase of oil production. The International Olive Council calculates a 12 percent increase for a production total of 2.854 million tons.
More articles on: prices
May. 2, 2023
Prices Continue to Break Records in Spain Ahead of Dismal Harvest Outlook
However, timely rain paired with stagnant global demand and an increasing number of olive groves entering maturity could reverse the price trends.
Jun. 5, 2023
Farmers and Consumers React to Rising Olive Oil Prices
As drought pushes production prices up across the Mediterranean, farmers and consumers adapt.
Nov. 21, 2023
The Agronomic and Macroeconomic Forces Behind Olive Oil Prices in Italy
Despite an anticipated production rebound in Italy, prices will likely remain high. Farmers will need to adapt to a new reality.
Oct. 3, 2023
Why Olive Oil Prices Are Higher in Spain
A combination of retail purchase schedules, consumer habits and tax rates explain why extra virgin olive oil costs more in Spain than in France, Italy or Portugal.
Feb. 1, 2024
Tunisia's Olive Oil Price Cap Gets Mixed Response from Consumers
The government capped the price of olive oil to keep household costs down, but locals question the efficacy of the plan.
Feb. 19, 2024
A Dismal Harvest Concludes in Greece
With the country’s olive oil production almost halved compared to last year, record prices at origin have shaped a market searching for equilibrium.
Sep. 7, 2023
Spanish Officials Raise Alarm Over Rising Olive Oil Prices While Calling for Calm
Olive oil prices have exceeded €10 per liter at retail and are expected to continue rising. Rain in Andalusia would provide a glimmer of hope for the approaching harvest.
May. 22, 2023
As Spain Fights Food Inflation, Pressures Keep Mounting
While inflation shows signs of moderation, political uncertainty ahead of a major election and the ongoing drought will continue to put pressure on olive oil and food prices.