Olive oil is becoming scarce, expensive and a popular commodity for thieves

Nutrition - Olive oil is becoming scarce, expensive and a popular commodity for thieves

At first glance, pensioner Rosa in Madrid and amateur chef Thomas C. in Hamburg have nothing in common. But when shopping in the supermarket, in front of the olive oil shelf, they have the same reaction: wide eyes and a "No way!" The price has risen rapidly. "Then you wonder why people are eating more and more unhealthily," grumbles the 85-year-old Spaniard. Thomas C. (56) says: "In future, maybe olive oil will only be used in salads."

The green gold is becoming more and more expensive because it is becoming increasingly scarce. Spain is by far the world's largest producer of olive oil. The annual yield, which has averaged around 1.5 million tons in recent years and accounted for almost half of global production, fell to less than half (665,000 tons) in the 2022/2023 harvest season. This was due to unfavorable weather conditions with very little rain. This year, the Ministry of Agriculture in Madrid expects only a slight recovery.

Price multiplied in Spain

The lower production volume, combined with higher production costs, has had consequences: The price of extra virgin rose from around 400 to over 800 euros per 100 kilograms within a single year. A few years ago, the price of this highest quality olive oil in Spain was only slightly over 200 euros.

The situation was similar in other important producer countries such as Italy and Greece. This has led to strange developments: Olive oil has suddenly become a popular stolen commodity. In the summer months alone, more than 80,000 liters were stolen from warehouses and oil mills in Andalusia in southern Spain. The newspaper "El Mundo" recently wrote that producers are afraid of the "pirates of liquid gold".

Olive and oil theft is also on the rise in Greece, according to Cretan oil producer Giorgos Papadakis. "The thefts are not as big as in Spain, but if 200 kilograms of good quality oil are stolen from a farmer here, the thief has 2,000 euros in his pocket overnight."

Stores secure olive oil bottles against thieves

In Spain and Greece, the oil and olives in the tanks and warehouses are now better monitored. In some Spanish stores, the bottles have even been secured with plastic caps like expensive alcohol for some time now.

Spanish farmers not only have to contend with thieves. A sharp drop in demand is causing great concern. Numerous traditional oil mills have had to close this year due to loss-making business. Cristóbal Cano, Secretary General of the Andalusian Association of Small Farmers and Livestock Farmers (UPA), warns that "an irreparable economic and social disaster is looming" in olive growing. The sector employs around 365,000 people in Spain.

Problems in Italy, Greece and Turkey

The crisis is also affecting Italy. Production there is falling more and more and prices are skyrocketing. According to the agricultural association Coldiretti, an increase of almost 50 percent was recorded this year. The head of the oil farmers' association Unaprol, David Granieri, speaks of an "unprecedented situation".

Italy is one of the leaders in olive oil consumption and the crisis is quickly making itself felt in the shopping basket. According to estimates, the country itself will produce around 290,000 tons of virgin olive oil this year. In order to reduce its dependence on imports, particularly from Spain, the government in Rome wants to plant more than one million new olive groves.

Meanwhile, in Greece, hundreds of larger and countless small and micro farmers produce up to 330,000 tons - but only every other year, as olive trees bear a full crop for a year and then take a break for a year, resulting in a lower yield. Such a weak year is 2023.

There are also problems in neighboring Turkey. The Ministry of Trade initially reported record figures in August: Production and exports had risen significantly. Turkish exporters had responded to the increased demand from abroad and offered more for export. However, this was not good news for most Turks. Their staple food became scarce and expensive. An export blockade is now in place.

Customers in Germany are holding back

The crisis is also making itself felt in Germany. "Consumer prices for cold-pressed olive oil from conventional production were around 54 percent higher in October 2023 than a year ago," Thomas Els told the German Press Agency.

The consumer researcher at Agrarmarkt Informations-Gesellschaft (AMI) reports that demand for olive oil has been weaker than the entire product group so far in the second half of the year. The reason for this, in addition to rising prices, is that "the price gap has widened as the price high for sunflower and rapeseed oil has disappeared over the course of the year."

Farmers everywhere unanimously blame the increasingly frequent extreme weather events for the malaise. Take Greece, for example: due to the mild winter, the trees had no time to rest, explains farmer Vassilis Mouselimis. Then, in spring, the temperatures were too high right at flowering time, which caused problems with fruit formation. And finally, there was not enough rain, which was bad for the growth of the olives.

José Gilabert is 59 and has been working in olive growing in Andalusia since he was 13. "It used to get cooler here at the end of August," he told the newspaper "El País". "And now we still harvest the olives in short sleeves in November."