"Southern Europe Drought Causes Poor Harvest" Olive Oil Prices Reach All-Time High

International olive oil prices have soared to an all-time high. Severe drought is spreading in Southern European regions, including Spain, the largest olive oil exporter, and olive oil prices are expected to remain high for the time being.

According to market research firm Mintec on the 12th (local time), international olive oil prices surged to 7 euros per kilogram, double last year's price which ranged between 3 and 4 euros. This is the highest record since related statistics have been compiled. The average price per bottle of olive oil, as reported by the UK Office for National Statistics, has risen by 47% so far this year (as of the end of May).

The sharp rise in olive oil prices is due to the severe drought affecting major olive-producing areas such as Spain and Italy. Due to extremely dry weather, the olive harvest in Spain, the world's largest olive-producing region, totaled 620,000 tons for last year and this year combined, which is less than 42% of the 1.5 million tons harvested in 2021 alone.

[Image source=AFP Yonhap News]

Kyle Holland, oilseed analyst at Mintec, pointed out, "(The Southern European region) is experiencing a prolonged dry season with rising temperatures and very little rainfall, resulting in the worst crop conditions," adding, "Market prices are soaring to unprecedented levels."

Due to the rapid decline in stockpiles, the upward trend in olive oil prices is expected to continue for the time being. Olive oil stocks in Southern Europe plummeted from 265,000 tons at the end of May to 205,000 tons as of the end of last month.

Southern European regions, including Spain, account for more than two-thirds of the world's olive oil production. Foreign media reported that since olive oil is the third largest export product among Spanish agricultural goods, this situation is also acting as a negative factor for the Spanish economy.

This content was produced with the assistance of AI translation services.