Why olive oil prices are soaring and what to do about it

The escalating prices of olive oil can be attributed to extreme weather conditions in Europe. Despite the challenges, olive oil producers and chefs are demonstrating resilience and sharing strategies to cope with the situation. The sight of a renowned chef lavishly drizzling extra-virgin olive oil on their Caprese salad or gazpacho is currently a luxury, given the record-breaking prices in European supermarkets. The question arises, why have olive oil prices skyrocketed?

Over the past decade, the world's oldest cultivated trees have exhibited their susceptibility to harsh weather conditions. Numerous olive groves in the Mediterranean are drying up due to severe weather conditions such as droughts and intense hailstorms that result in floods. In 2023, the region, along with the entire globe, experienced the hottest summer on record. Italy, Greece, and Spain, the leading olive oil-producing nations, have been hit the hardest. Chefs and consumers are left perplexed about what to substitute for their staple ingredient.

Rossella Boeri, an olive oil producer and the fifth-generation owner of Olio Roi in Badalucco, Italy, commented on the unprecedented dryness of the past summer. She noted that while olive trees are resilient, they are grappling with a significant decrease in production, which is reflected in the soaring olive oil prices and subsequently, a decline in consumption and demand. In Almeria, Spain, Rafael Alonso Barrau, a seventh-generation farmer and owner of Oro Del Desierto, confirmed the dwindling production numbers. He attributed the crisis primarily to climate change, expressing concern over the increasingly longer and hotter summers that are impacting the viability of production. Large corporations, described by Boeri as 'cartels', are exacerbating the situation by driving up olive oil prices, adversely affecting smaller, family-run businesses and causing panic in supermarkets. According to Mintec, a raw material market forecaster and data analysis firm, Spanish olive oil prices surged by 115% between September 2022 and September 2023. The price hike is felt globally, but Europe is bearing the brunt, given the cultural significance of olive oil to many Europeans.