Friday, September 22, 2023

Olive oil is becoming more expensive: here’s why prices are skyrocketing

© Olive oil is becoming more expensive: this is why prices are skyrocketing

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The production of olive oil is increasingly expensive for large European producers. In fact, in one year, the price of extra virgin olive oil increased by 61% in Spain, 47% in Italy and 45% in Greece. In France, it costs almost 40% more than last year.

The production of olive oil is increasingly expensive today. Let’s discover together, thanks to a survey that TF1 realized the reasons for this increasingly worrying trend.

Olive oil is constantly increasing

Olive oil is a star product of southern European culinary culture and is widely consumed throughout the country. In Italy, for example, Extra virgin olive oil is an essential ingredient. in many traditional recipes, such as Pasta, tomato and mozzarella salad, bruschetta and pizza.

Along with Spain and Greece, Italy is one of the largest producers of olive oil in the world. The Italian regions that produce the largest amount of olive oil are Puglia, Sicily, Calabria and Campania.

Read Tips to properly preserve your olive oil and preserve all its qualities

However, the price of olive oil, especially extra virgin, is constantly increasing in Europe.

According to the data, the increase was 61% in Spain, 47% in Italy, 45% in Greece and almost 40% in France.

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But what is the reason for this increase in the price of this oil?

The reason for this increase in the price of olive oil is relative to a series of factors. Among them, the increase in the cost of energy and fertilizers in recent months.

This inevitably increased production and transportation costs. Although things are slowly returning to normal on this front, another factor continues to contribute to the increase: drought!

Indeed, Drought seriously reduces the olive harvest in the Mediterraneanwhich makes the raw material more scarce and, therefore, more expensive.

Read Olive oil: its magical and totally unknown virtues for the maintenance of your home

The drought affected the largest producers of this product in the Mediterranean basin, severely reducing harvests. So in the years to come, It will be much more difficult to meet total global demand..

In general terms, European production covers two thirds of the world’s demand for olive oil.

However, According to the European Commission’s forecasts, this year’s production will be 40% lower. to 2021/2022, thus producing only 1.3 million tons of olive oil. Or one million less than in 2021/2022.
As a result, the European Union will go from two-thirds of demand to only half.

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A worrying situation

So, The situation of European olive oil producers is truly worrying.. In fact, Spain has lost more than half of its production in one year. While Tunisia suffered a 25% drop in production due to a severe drought.

In total, around 3 million tons of olive oil are consumed worldwide, of which only half is consumed in the European Union.

The cause ? Prices on the rise! Thus, the quantities consumed decreased by 5% worldwide and by 11% in the European Union.

Therefore, it is natural that The drop in production this year is much greater, around 26%.

Olive oil in France: the research TF1

According TF1More and more French consumers are avoiding olive oil.

“Personally I don’t buy them anymore. Because, in fact, he is almost becoming too expensive.”later confirmed a client in a report TF1. “Prices have increased approximately 20%”then estimated another client.

The Puget brand, leader of the sector in France, recognizes the increase and justifies itself to TF1: “In the world olive oil market, prices have doubled in a year”.

How to explain such an increase?

Although most of the olive oil consumed in France comes from Andalusia, in Spain, Rafael Guzmán, an olive grower, received the team from TF1 in its olive grove of more than 40 hectares.

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Thus, as in 2022, its harvest seems very poor. Even if the olives grew, They are smaller and therefore give less oil. The cause ? Historical drought episodes!

Therefore, Rafael must sell his olive oil at double the usual price, up to 8.5 euros per kilo.

Inventories have decreased and are insufficient to meet demand. due to two consecutive bad harvests. Thus, prices show a significant increase everywhere.

Producers speculate all they want!

If prices continue to rise it is also because some olive oil producers are speculating. “Anyone who owns stocks knows that their value has increased. And he who doesn’t have one wants to create one.”explains mass distribution specialist Olivier Dauvers.

“Mechanically, this will produce a phenomenon of price increases, which we can call speculation”, explains Olivier Dauvers.

According to TF1, some manufacturers resort to a backup solution. It consists of producing hybrid oils, somewhat cheaper than the classic ones.

Some bottles, for example, Then it presents a mixture of 80% sunflower oil, with only 20% olive oil.

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