CJ and Sempio Raise Olive Oil Prices by Over 30%... Sajo and Dongwon to Follow Soon

by Kim Daehyun

Published 12 May.2024 16:54(KST)

As international olive oil prices rise, domestic food companies have increased the prices of their olive oil products.

Edible oils and olive oils are displayed on the shelves of a large supermarket in Seoul. Photo by Jinhyung Kang aymsdream@

According to the food industry on the 12th, CJ CheilJedang and Sempio raised the prices of olive oil products sold at large supermarkets by more than 30% earlier this month. Sajo Haepyo is also reported to have notified distributors that it will raise olive oil product prices by an average of around 30% starting from the 16th. Dongwon F&B will increase olive oil prices by about 30% within this month.

The sharp rise in international olive oil prices was mainly caused by drought in Spain, the largest producer. According to the industry, international olive oil prices have risen by more than 40% in one year. Spain has suffered from drought for the past two years, and the price of Spanish olive oil has more than doubled in one year.

Similarly, major olive-producing countries such as Greece, Italy, and Portugal have experienced comparable situations. The foodservice industry, which uses olive oil with soaring prices, is also expected to raise menu prices.

The government has been repeatedly requesting the food industry to cooperate with the price stabilization policy, but product price increases continue. CJ CheilJedang and seaweed specialists such as Gwangcheon Gim, Daecheon Gim, and Seonggyeong Food raised seaweed prices by more than 10% this month. Among foodservice companies, McDonald's raised prices on 16 menu items by an average of 2.8% this month, and Pizza Hut increased prices on two menu items by about 3%.

Lotte Wellfood planned to raise prices on some products starting this month due to the rise in cocoa prices, a raw material for chocolate, but postponed the price increase by one month following the government's request.