World News: Olive oil price reaches record highs

Author
Foodcom Experts
22.09.2023
4 min reading
World News: Olive oil price reaches record highs
Summary
Table of contents
  • Olive oil is another product whose prices have skyrocketed due to extreme weather conditions
  • Rising demand for olive oil
  • Progressive climate change worsens the situation on world markets

Olive oil price reaches record highs

According to the USDA, world olive oil prices rose to more than $8.9 per ton in August, a 130% increase from a year earlier. This sharp price increase is primarily due to a two-year drought and record heat in Spain, the world’s largest producer and exporter, which has reduced the olive harvest by half. This phenomenon is not limited to Spain, however, but also affects Italy and Greece, which are also feeling the effects of price increases due to the decline in domestic production. In addition, the situation is complicated by Turkey’s decision to suspend olive oil exports.

Demand pressure drives prices

Demand for petroleum is increasing year by year, and consumption has remained at 3 million per year for the last five years, almost double that of 1980-1985. The consequences of the war in Ukraine and the resulting shortage of sunflower oil are not insignificant to this situation.

The consequences of climate change

Ongoing climate change is already affecting the daily lives of Europeans and will continue to do so in the near future. Europe is expected to warm up, with some regions becoming drier and others wetter. These changes will not only affect our health, but also the ecosystems on which we depend.

 

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