Unfortunately, the price of olive oil has skyrocketed worldwide for two campaigns now. Average increases are already over 70%! And we’ve gone from producers complaining about prices that are too low compared to products like wine to having to charge “insane” prices.
And it’s not that high-quality extra virgin olive oil isn’t worth it. The problem is that consumers feel “insulted” when they suddenly go from 10-12 euros for a 500 ml bottle to 18-20 euros!!
The reason is simple: While Spain produced more than half of the world’s olive oil in 2020, with more than 1.2 million tons, it produced barely 500,000 tons in the last two harvests. This means, on the one hand, that the producer spreads its fixed costs over less than half of the units sold, and, on the other hand, the product scarcity automatically leads to a price increase on the purchasing side.
We are very concerned that the drought and heat will continue. Even the olive tree’s flowering in March and April was affected by the unusual heat. The good news in the face of adversity is that creative solutions for irrigating olive trees are also flourishing, and there have been many recent patents for optimizing water consumption.
In any case, pre-2020 production levels are unlikely to be reached in the short term, and high prices will also persist. Paradoxically, high-quality extra virgin oils such as Oro del Desierto, Palacio de los Olivos, Oro Bailén, and many others have adapted better to the circumstances, and prices have not increased as much as “grocery store” olive oil.
Producers of high-quality EVOO generally already had better equipment and access to water. Likewise, their commercial margins are higher, allowing them to better absorb trade tensions.
The result is that buying olive oil has now become a very complicated task. The average person can no longer afford the €10/bottle olive oil from large stores and is turning to cheaper alternatives such as seed oils, especially sunflower oil.
These oils easily replace olive oil for cooking and frying, but certainly cannot compete with raw olive oil for salads and vegetables. However, we must say that consumers won’t notice it too much, as the olive oils typically delivered to large stores, even Extra Virgin, are usually not of high quality.
They have a mediocre aroma and flavor, due to the constant pressure exerted on producers over the past decades to offer a product as cheaply as possible. For this reason, many large producers were literally left without a market and had to close.
On the other hand, consumers of high-quality EVOO who don’t want to miss out on the special aromas and flavors and are willing to accept the new prices will continue to have the product. Paradoxically, and certainly in a bad way, olive oil has “forced” overnight to become the gourmet product it always deserved, but is no longer available to everyone.
Important Note: aceitedelcampo.com promotes the consumption of extra virgin olive oil for its culinary qualities and health benefits. However, no medication or current treatment should be replaced without the guidance of a healthcare professional.
ALZAYT EXPORT SL
info@aceitedelcampo.com
C/ Eduardo Bosca 19, 2-5
46023 Valencia
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