Olive oil prices in Europe have skyrocketed as olive production declines, due to climate change and drought. Spain comes out on top, with an increase of 42%, according to data from the European statistics agency Eurostat.

The Spanish newspaper "El Pais" indicated that Spain is considered the first market for olive oil in the world, but drought and lack of water caused a decrease in production by between 40% and 50%, which led to warnings of a shortage of olive oil and caused prices to rise for weeks.

And the newspaper indicated that only last November, olive oil prices increased by more than 25.9%, after it rose again by 21% in November last year 2021, according to data published by Eurostat.

Pessimism prevails in the olive sector due to the scarcity of rain and the heat of the climate for months, which means that it is impossible to reach the figure of 1.4 million tons of olive oil, like last year.

Experts’ expectations indicate that the current olive harvest season may approach the worst season so far, which is 2012, when Spain produced barely 620 million tons, at a time when Spain contributes 45% of the global production of olive oil, and exports two-thirds of its production.

Spain is the world's largest producer of olive oil, accounting for more than two-fifths of global supply last year, according to the International Olive Council. Greece, Italy and Portugal are also major producers.

And consumers are already paying more for olive oil. Retail prices across the European Union rose 14% in the year to July. But producers and buyers said prices are expected to rise further in the coming months.

The production of olive oil is highly dependent on timing. The trees begin to bud in March before the flowers open in May. The olives grow during the summer months before harvesting in the fall.

  Source: The Seventh Day website