Olive oil price goes through the roof
Olive oil is becoming increasingly expensive. A lack of rain in Spain is leading to poor harvests and therefore rising prices on the world market. Consumers must be prepared to pay even more than before.
Although inflation is easing, food is still becoming noticeably more expensive. At the forefront: olive oil. According to the Federal Statistical Office, it cost a whopping 43 percent more in Germany in November than a year ago. And there is no end in sight to the sharp rise in prices.
A look at wholesale prices in Europe shows just how rapid the price trend is. At the beginning of 2021, Spanish oil of the low-grade Lampante variety still cost 1.87 euros per liter. It is now 6.85 euros. The price of higher-quality Spanish virgin oil has shot up from 2 to currently 7.10 euros. It has almost doubled this year alone.
Spanish olive oil is used as a reference because the country is the largest producer of olive oil. 70 percent of the oil consumed in the EU and 45 percent of the oil consumed worldwide is produced there. The heart of Spanish production is Jaén, a province in the interior of the country. It has been suffering from drought for many months, which has also affected other olive-growing regions throughout the country. The harvests are much poorer. Due to Spain's role on the world market, the consequences are considerable: if the supply of oil falls significantly, the price rises noticeably while demand remains the same.
Although the lack of rain is the most important reason why Spanish olive oil has become more expensive, it is not the only one. Producers have higher costs - the prices of energy and fertilizers, for example, have risen sharply.
Climate change means that the traditional experience that a bad harvest year is often followed by a good one is becoming less valid. "We actually have a Mediterranean climate, which tends to have dry periods, periods of heavy rain and periods in between," the BBC quotes the head of a Spanish cooperative of olive oil producers as saying. "At the moment, however, we have a dry period that lasts a very long time."
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As global temperatures continue to rise due to climate change, farm lands are becoming less predictable, affecting crop yields. This is particularly evident in Spain, a leading olive oil producer, where droughts are lasting longer, leading to poor harvests and increasing food prices, with olive oil prices skyrocketing by 43% in Germany alone. Moreover, inflation is also contributing to the rising cost of food, making basic necessities like olive oil more expensive for consumers to afford.
Source: www.ntv.de
