%OliveOil prices continue to skyrocket as drought conditions in Spain persist, damaging the crop behind what is often referred to as “liquid gold.”
Olive oil, which is viewed as the lifeblood of Mediterranean cuisine, is up as much as 70% year-over-year in some countries such as Portugal, according to data from Eurostat.
Throughout the European Union, olive oil prices are up an average of 50% since early 2023, dwarfing general food inflation of 4.8% over the same time period.
In Spain, the world’s largest olive oil producer, prices were up 63% in January of this year compared to 12 months earlier.
The rampant price inflation is due to drought conditions and extreme heatwaves across Spain, where production was effectively cut in half during 2023.
More than 80% of the olive oil produced in Spain is scheduled for export, and demand has skyrocketed as those exports have shrunk over the last 12 months, pushing prices higher.
Countries such as Portugal and Greece are now reporting olive oil shortages.
Unfortunately, there appears no end in sight to the current situation as persistent drought conditions in Spain are hurting the 2024 crop year that began on Oct. 1, 2023.
Spain’s Agriculture Ministry has said that it expects olive oil production to remain below one million tonnes for an unprecedented second consecutive year in 2024.