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Olive oil is extremely vulnerable to the vagaries of the climate and market variations. In recent years, olive oil prices have continued to rise, reaching all-time highs. But what are the reasons for this price increase? And what are the implications for both consumers and producers?
The increase in olive oil prices is largely due to the reduction in global production. This is a situation that raises serious concerns. According to information from IOCGlobal olive oil production is expected to peak at around 3.14 million tonnes.
For the 2022/2023 campaign, this represents a significant decrease of 6.5% compared to the previous season. This decline is largely due to unfavorable weather conditions affecting the main producing regions.
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Drought, frost episodes, fires, and diseases have had a negative impact on the yield of the olive tree. And not only that! These phenomena also affected the quality of the harvested olives. For example, in Spain, the world’s leading producer, Production is expected to fall by 15%. compared to the previous campaign.
In Italy, a 30% drop is expected due to the spread of the bacteria Xylella fastidiosa. It should be noted that Italy occupies second place in the ranking of world producers. Therefore, these factors undoubtedly have repercussions on olive oil prices.
Requests are increasing!
Growing demand for olive oil is facing limited supply, creating an imbalance in the market. According to IOC data, global olive oil consumption is expected to increase by 3% during the 2022/2023 campaign. In other words, this can reach a total of 3.11 million tons.
This increase in demand is mainly attributed to the health benefits of olive oil. A statement supported by numerous scientific studies. In fact, this oil stands out for its richness in monounsaturated fatty acids, antioxidants, and polyphenols.
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As a reminder, these elements can prevent diseases such as cardiovascular disorders, diabetes, and certain types of cancer. Furthermore, olive oil occupies a central square in the Mediterranean diet. A concept that all weight loss lovers know very well!
It is considered one of the most balanced diets in the world. Demand comes largely from traditional consumer countries. This is particularly the case in Spain, Italy, Greece, and Portugal.
Increase in the price of olive oil: Important consequences!
The increase in olive oil prices has divergent consequences depending on the actors in the sector. For producers, it represents an opportunity to show their work and improve their income. However, from the consumer’s point of view, it constitutes a restriction It will probably encourage them to reduce their consumption.
According to the forecasts of Michel Ruimy, olive oil prices are likely to continue rising in the coming years. In an interview with Atlántico, he highlights that the preliminary figures for the 2022-2023 harvest are alarming. This could lead to a reduction of almost half of European stocks for the current year.