The price of olive oil has skyrocketed in recent months and this summer it has reached historic figures. The extra virgin has stood at 7.1 euros per kilo (exceeding 9 euros for the highest quality), 6.5 euros in the case of virgin oil and almost 6.3 euros per lampante, subjected to a refining treatment for consumption, as reflected in the latest data from the Ministry of Agriculture. Olive oil is worth 38.8% more in the supermarket than a year ago, according to the National Institute of Statistics (INE), and prices are expected to continue to rise in the coming months if the drought continues.
The inflation suffered in the last year has been noticeable in all food groups, but there are some in which it has done so in an especially significant way. Among the reasons that justify this increase are the increase in costs at origin or transport (as happens with sugar, for example) and climate change, the effects of which are being felt with increasing intensity and which affect the production of oil.
The rise in prices affects all categories. According to the latest figures provided by the Ministry of Agriculture, Fisheries and Food, the extra virgin exceeded 7.10 euros per kilo on average during the week of July 10, increasing 37 cents compared to the previous week. In the case of virgin, the average was €6.53/kg and for lampante €6.27/kg. In just one month (from June 12 to July 16), the price of EVOO increased by 15.42% and more than 10% in the other two varieties.
If the figures are compared with past campaigns, the average price of oil has increased by 84.6% compared to last year and 109.3% compared to the prices of 2021. Specifically, the value of virgin olive oil extra has doubled in one year, going from an average of 3.57 euros per kilo to 7.10 (98.8% more; 115.8% more if compared to the costs of 2021).
By autonomous community, Catalonia is the region in which prices have increased the most, with an average of 8 euros for EVOO (the national average stands at €7.1). The second most expensive community is Castilla La Mancha (€7.19/kilo), followed by Andalucía (€7.07/kilo). In the case of virgin oil, it is also in Catalonia where it is worth the most, 7.45 euros per kilo. The lampante (the worst quality), on the other hand, costs €6.30/kilo in Andalusia, 5.9 in Extremadura and 5.75 in Catalonia. The graphs show a price escalation in other countries such as Italy, Greece and Tunisia.
However, the data reflects that the rise in prices is not a new phenomenon, but has been increasing progressively since 2021, before the outbreak of the war in Ukraine. If we look at the prices of week 28 of that year, the price of oil was 42.9% higher than that of the same week of 2019. The current cost triples that of then.
The scarcity of water has played a key role in the value of olive oil during the last campaigns. Last year, in some areas the harvest fell by 50%, as happened in Catalonia, and for this campaign it is expected to drop another 50% again. The drought spoils a large part of the harvest and also prevents the flowering of many olive trees from occurring. Only the rain could change the bad forecasts.
Given this scenario, there are two concerns. The first towards the producers, who are facing a bad campaign due to the drop in production, exports and domestic consumption. And the second one comes precisely from this last factor, since with the exorbitant price of oil, many consumers are choosing to reduce their consumption and it is feared that they will opt for other cheaper fats, such as sunflower, soybean, palm, and rapeseed oil. or coconut.
