Climate change is driving up olive oil prices

Climate change triggers olive oil prices

The impact of climate change on olive trees highlights the growing challenges that global warming poses for food production. According to data from the U.S. Department of Agriculture, benchmark retail prices rose to a record $9,000 per ton in October.

Healthier cooking oil is now fetching an even higher price as climate change-induced droughts, heatwaves, and wildfires devastate olive orchards in southern Europe.

Extreme weather in olive-growing territory has reduced the world harvest by nearly half for the second year in a row. which drove olive oil prices to record levels.

A Spanish government production estimate for August revealed the worst fears: a crisis in the olive oil markets. Several Mediterranean countries suffered from dryness and drought, further straining supplies. As supplies from Mediterranean regions become increasingly irregular, many consumers may need to seek alternative sources that offer similar health benefits.

“The olive oil supply shortage will become even more dramatic if current production estimates materialize. “We believe it is likely that olive oil prices on the world market will soon reach or exceed $10,000 per ton,” said Oil World, a leading industry forecaster, in an update on its website on October 20.</p >

In a May forecast, Spain, which sets world prices and provides half the world’s olive oil supply, said production was expected to fall by almost 48% compared to the previous year. A harsh summer and wildfires in the world’s largest producer had decimated much of its crop.

The supply crisis is said to be worse than last year, and its impact is spreading to food, restaurant, and household markets, from Europe to the United States and India, traders said.</ p>

“Prices of the imported extra virgin variety in India have risen by 22%. “Restaurants are more likely to pass this on to customers,” said Abhishek Agrawal of Comtrade, a commodity trading company. India consumes about 12,000 tons of olive oil annually, according to the association, most of which is imported. India of the olive tree.

In May, the Italian government called an emergency meeting after a 20 percent increase in pasta prices, driven in part by olive oil, sparked political protests. According to official figures, Spain’s production in the 2023-24 agricultural campaign was around one-third below the four-year average.

Olive oil prices in Spain will remain at record levels until at least June, said an October 26 Reuters report citing Deoleo, the world’s largest olive oil producer, and this will affect all importing nations.

The U.S. Department of Agriculture has cut its estimate of global olive oil production to 2.5 million tons, a quarter less than the five-year average. Consecutive droughts and wildfires in southern Europe point to extreme weather events linked to climate change, experts say.

Spain recorded its third-warmest summer on record this year, with an average summer temperature 1.3 degrees Celsius above normal, according to the government’s meteorological agency AEMET.