Bad harvest
Spain is struggling with high olive oil prices
September 19, 2023, 6:12 p.m
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Olive oil is the basis of Spanish cuisine. That’s what Spain’s Economics Minister says and is concerned about the supply of the population. Because the costs have risen significantly since the beginning of the year. Consumer advocates also see speculators at work.
As a result of a severe drought and a correspondingly poor olive harvest, olive oil prices in Spain have risen sharply. Consumer advocates and the government in Madrid are now concerned about the supply of this staple food to consumers. Economy Minister Nadia Calviño called on all economic actors involved to make a joint effort to keep prices under control.
According to the consumer organization Facua, the price of olive oil has risen by 42 percent since the beginning of the year – from 6.91 euros per liter in January to 10.34 euros in September. Nothing is currently worrying Spain’s families as much as this price increase, said Calviño. Olive oil is “the basis of Spanish cuisine”.
The consumer organization OCU warned against price speculation. In neighboring Portugal, olive oil currently costs 27 percent less. In France, too, prices are 16 percent lower than in Spanish supermarkets. The Spanish Ministry of Agriculture must control the production chain and “ensure that no abuse takes place.”
Last week, Economy Minister Calviño assured that she had no knowledge of any abusive practices in the sector. The price increase is due to an imbalance between supply and demand. In Spain, the per capita consumption of olive oil is far higher than that of its neighbors.
At the same time, Spain is the largest olive producer in the world. However, after an extreme drought, the harvest in the 2022/2023 season was half the average of previous years at 673,000 tons. Agriculture Minister Luis Planas expects an improvement for the 2023/2024 season. However, the one million ton threshold is unlikely to be reached again.