European Thieves Raiding Marts Now First Seek This... the 'Liquid Gold'

Olive Oil Prices Soar 50% in Six Months Due to Poor Harvest
No Signs of Price Relief... Theft Crimes Rampant Locally

The price of olive oil is reaching an all-time high. This is due to a severe drought in major producing countries such as Spain, which has reduced supply. Locally, the skyrocketing price of olive oil has led to it being called "Liquid gold."

According to US media CNBC on the 18th (local time), the US Department of Agriculture recently reported that due to extremely dry weather in the Mediterranean region, the international price of olive oil in September surged to $8,900 per ton (about 12 million KRW). This is an increase of nearly 50% compared to March, just six months ago.

The report stated, "The average price in August already surged 130% compared to the same period last year, and there is no sign of the upward trend easing."

The US Department of Agriculture pointed to "very dry weather in the Mediterranean" and the resulting poor crop conditions as the main causes of the olive oil price increase.

In particular, Spain, the world's largest olive oil producer and exporter, has been suffering from a prolonged drought for several months. According to the Spanish National Meteorological Agency (AEMET), the average temperature in Spain this summer was 1.3℃ higher than usual, making it the third hottest on record.

As a result, Spain's olive oil production for 2022?2023 was about 610,000 tons, less than half of the average production of 1.3 to 1.5 million tons.

Consequently, the price of olive oil in Andalusia, which accounts for 75% of Spain's olive oil production, soared to 8.45 euros per kilogram (about 12,000 KRW) in September. This is a 111% increase compared to the same period last year and marks a record high.

'Liquid gold' nickname leads to a series of theft incidents

A Spanish farmer is harvesting olives
[Photo by Yonhap News]

In grocery stores and supermarkets, extra virgin olive oil, which was priced around 4 euros (about 5,700 KRW) last year, is now being sold for 10 euros (about 14,000 KRW). This is more than a 2.5-fold increase in just one year. Due to the soaring prices, olive oil is locally referred to as "Liquid gold."

Theft incidents involving olive oil are also becoming frequent across Spain.

According to local media, an olive oil manufacturing plant in C?rdoba city was robbed of about 50,000 liters of olive oil (worth approximately 600 million KRW) on the 30th of last month. At the 'Terabern' plant, there was also a theft of 6,000 liters of extra virgin olive oil (worth about 70 million KRW). Additionally, cases of olive oil being stolen from stores have surged, leading to an increase in the use of chains or alarms attached to olive oil bottles.

The problem is that the situation is not much different in other Mediterranean countries, including Greece and Italy, which rank second and third in olive oil production. Amid this situation, T?rkiye, one of the major producing countries, has suspended large-scale olive oil exports until November 1.

Kyle Orland of Mintec, a raw materials information provider, said, "T?rkiye's export suspension has further worsened the (global) supply and demand," adding, "Olive oil stocks continue to decrease due to drought. Stocks could be depleted before the new harvest begins in October."

Since two-thirds of the world's olive oil is produced in Europe, the upward trend in olive oil prices is expected to continue for the time being.

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