Olive Oil Prices On TrackTo Halve, Says World’s Biggest Producer

One of the most challenging periods for the olive oil industry is nearing its end, potentially driving prices down to half their all-time high in the coming months, according to Spain's Deoleo, Doloresz Katanich reported for BBC News.

Spain, which accounts for nearly half of global olive oil production, experienced two consecutive years of drought that severely limited harvests, leading to a worldwide price hike.

The world's largest olive oil producer predicts cooling prices after the industry faced record highs earlier this year.

Contributing factors included climate change-induced droughts impacting harvests and inflationary pressures throughout the value chain. In January, EU olive oil prices had risen by 50% year-on-year, while in the UK, prices had soared by 150% compared to late 2021.

Spain, which accounts for nearly half of global olive oil production, experienced two consecutive years of drought that severely limited harvests, leading to a worldwide price hike.

Deoleo, the maker of well-known brands like Bertolli and Carbonell, anticipates a much-improved harvest for the 2024-2025 season.

"The outlook is positive for the coming months, as the market is expected to stabilize, and normality is gradually restored as the new harvest progresses and supply increases," said Miguel Ángel Guzmán, Deoleo's Chief Sales Officer, in an interview with CNBC.

However, he cautioned that tension remains in the prices of high-quality olive oils, such as Extra Virgin. Guzmán noted that prices are expected to fall to half of the record levels seen at the start of the year.

"The relaxation of prices at origin is likely to begin between November, December, and January, provided that weather and harvest conditions remain stable in the coming weeks," Guzmán added.