Olive Oil Prices Might Finally Come Down as Production Recovers

Global olive oil prices are expected to drop in the coming months, following a recovery in Spain’s olive harvest. Leading Italian supplier Filippo Berio predicts that prices could ease within three months as new season oils reach supermarket shelves.

Spain, responsible for around half of the world’s olive oil supply, had faced severe drought and extreme heat over the last two years. However, improved weather conditions have led to a stronger harvest of 1.4 million tonnes—more than double the previous season’s yield.

Walter Zanre, managing director of Filippo Berio UK, said that although prices began to soften late last year, many retailers were slow to pass on these reductions. “It takes around three months for these reduced prices to reach supermarket shelves,” he explained.

Despite the improved supply outlook, Zanre noted that demand remains sluggish. Consumption has dropped by 20%, falling back to levels last seen in 2004, as many consumers turned to alternative oils (for the UK data only, since olive oil consumption worldwide is at the highest level ever).

“The shortage has undone all the good work done to build the category,” Zanre added, warning that it may take time for consumers to return to olive oil.

Source: OFI Magazine