editorial team
Olive oil, the quintessential Mediterranean table condiment, is undergoing a deep crisis with a price spike in recent months reaching record figures.
The jump of over 40% in the cost of extra virgin olive oil cannot be explained solely by inflation, but paints a picture of greater complexity that involves both European and non-European countries. Consumers, accustomed to scouting for discounts in supermarkets, struggle to find bottles of extra virgin olive oil for less than 9-10 euros, a figure that far exceeds the prices practiced until recently, when it was still possible to encounter promotions of oil at 2.99 euros per liter, albeit of lower quality.
This reality marks the end of an era where low-quality oil could be offered at bargain prices. Now, many consumers are turning to less refined oils or opting for cheaper alternatives such as seed oils. In Italy, the trend is reflected in a decline in olive oil consumption, a phenomenon that risks worsening given the current situation.
The crisis is driven by a series of factors among which climate change stands out, particularly affecting Mediterranean countries, where 90% of the world’s oil is produced.
The olive tree, a symbol of this region, suffers terribly due to high temperatures and prolonged drought, putting its historic resilience to the test. 2022 ended with a global olive oil production drastically reduced by 25% compared to previous years, with Spain, which produces nearly half of the world’s oil, recording a production decrease of 56%. Italy, Greece, Portugal, Tunisia, and Morocco have seen similar declines.
The situation is different for Turkey, which, emerging as a new oil power, has seen an increase in production. But the crisis is not just numerical. The geography of olive oil is being redrawn, with producing countries reviewing their internal balances and market dynamics.
Moreover, the introduction of intensive practices in countries like Spain has led to an increase in water demands for olive trees, with negative impacts during drought periods. In Italy, especially in regions like Apulia, Calabria, and Sicily, drought has severely influenced the growth and maturation phases of olives, directly impacting the quantity and quality of the harvest.
The crisis is not limited to the field: rising energy costs have increased milling expenses by 20% and affected transport and packaging costs, with the cost of glass bottles doubling and a controversial transition to the use of cheaper but more problematic PET in terms of health and environmental impact.
With European stocks halved compared to previous years and reserves amounting to only 300,000 tons as of September 30th, the outlook for the olive oil industry is complex and high prices seem set to remain until an unforeseeable reversal of trends.
The current situation raises not only economic but also environmental, social, and public health issues, placing the olive-oil sector in front of a future full of uncertainties and challenges.
